After layoffs, cost cuts and a price increase, Salesforce has exceeded a 30% profit margin — exactly what its activist investors wanted to see

• Salesforce reported a 31.6% profit margin on Wednesday for its Q2 FY '24, raising annual guidance to 30%.
• Activist investor Starboard Value last year called on Salesforce to up its profit margins.
• A leaked plan said Salesforce aimed to deliver above a 30% margin by fiscal 2025.

When Salesforce announced its second quarter earnings after the bell on Wednesday, it had a pleasant surprise for its many activist stakeholders: it delivered the profit margins they wanted far faster than expected.

The cloud software giant reported a 31.6% non-GAAP operating margin for the second quarter of its fiscal 2024 and raised guidance for the full year to 30%. The quarter ended on July 31.