Salesforce Stock Soars on Blowout Earnings Amid AI Growth

Salesforce staged one of its biggest single-session rallies in years after posting blowout earnings results. The company's stock jumped 22.58% on a $11.35 billion revenue print, up 10.8% year over year, alongside non-GAAP EPS of $5.90 versus a $3.27 consensus.

The bull case for Salesforce centers around cash generation and AI monetization. The company generated $1.098 billion in free cash flow, an 81% increase from the previous year, and management guides to a 34.3% non-GAAP operating margin for the year.

A key metric is Agentforce ARR, which crossed $1.5 billion, up over 240% year over year. The combined Agentforce and Data 360 ARR reached nearly $3.9 billion, with analysts valuing it at a rare pairing of double-digit growth and defensive cash flow.

However, bears argue that the easy repricing already happened, as CRM ripped 38.87% in a single month. They also point to structural risks such as restructuring charges, shareholders' equity falling by 37.42%, and total liabilities nearly doubling to fund the ASR.