Stock Movers: GitLab, Dollar Tree, Salesforce

Scott Peters
05 Sep, 2025
New York City

Salesforce Inc. declined 5.6% to $242.15 despite the customer management software developer reporting a 36% increase in net income in the second quarter ending on July 31.

Consolidated revenue increased to $10.2 billion from $9.3 billion, net income jumped to $1.9 billion from $1.4 billion, and diluted earnings per share rose to $1.96 from $1.47 a year ago.

During the second quarter, Salesforce returned a total of $2.6 billion to shareholders through share repurchases and dividends, including $2.2 billion in share repurchases and $399 million in dividends.

Salesforce announced an additional $20 billion in share repurchase authorization, increasing the total program size to $50 billion.

The company guided third-quarter revenue to be between $10.24 billion and $10.29 billion, and diluted earnings per share between $1.60 and $1.62.

However, the company's revenue outlook for the current quarter and full year fell short of market expectations. 

Salesforce guided full-year revenue to be between $41.1 billion and $41.3 billion, and diluted earnings per share between $6.99 and $7.03.

“We remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow,” said Marc Benioff, Chair and CEO, Salesforce.

Annual Recurring Revenue from Data Cloud and AI units increased 120% from a year ago, reaching $1.2 billion. Since the launch of Agentforce, Salesforce has closed over 12,500 deals, including more than 6,000 paid deals. 

In the second quarter, the company secured 60+ deals valued at over $1 million that included both Data Cloud and AI. 

Dollar Tree Inc. dropped 9% to $100.23 after the discount retailer reported a 42% rise in net income in the latest quarter, but the company's outlook disappointed and fell short of expectations.

Same-store sales increased 6.5% in the quarter, driven by a 3% increase in traffic and a 3.4% rise in ticket size. 

Consolidated revenue jumped 12.3% to $4.6 billion from $4.1 billion, net income climbed to $188.4 million from $132.4 million, and diluted earnings per share soared to 75 cents from 66 cents a year ago.

During the fiscal second quarter, Dollar Tree returned a total of $572.4 million to shareholders through share repurchases, including the repurchase of 5.6 million shares of common stock. 

The retailer estimated fiscal third quarter adjusted diluted earnings per share will be similar to a quarter a year ago. 

Dollar Tree raised its full-year revenue estimate to a new range between $19.3 billion and $19.5 billion and adjusted diluted earnings per share from continuing operations to between $5.32 and $5.72.

The retailer cautioned that its guidance is based on stable tariffs for the balance of the fiscal year, and the company will be able to mitigate "most of the incremental margin pressure from higher tariffs and other input costs."

In the second quarter, the company opened 106 new stores.

GitLab Inc. dropped 9% to $43.70, and the software developer’s net income swung to a loss in the latest quarter ending on July 31.

Consolidated revenue edged higher to $212.7 million from $163.2 million, net income swung to a loss of $10 million from a profit of $12.2 million, and diluted earnings per share swung to a loss of 6 cents from a profit of 8 cents a year ago.

The company guided third-quarter revenue to be between $238 million and $239 million, non-GAAP operating income between $31 million and $32 million, and non-GAAP diluted earnings per share between 19 cents and 20 cents.

The company said customers with annual recurring revenue (ARR) over $5,000 grew 11% from a year ago to 10,338, while customers with ARR over $100,000 rose 25% to 1,344. 

The dollar-based net retention rate remained healthy at 121%, reflecting strong expansion within the existing customer base. 

Total remaining performance obligations (RPO) increased 32% year-over-year to $988.2 million, and current RPO grew 31% to $621.6 million, highlighting strong future revenue visibility.