Salesforce Stock Soars on Blowout Earnings Beat

Salesforce's (CRM) stock surged in after-hours trading following its second-quarter earnings report for Fiscal Year 2027. The software company reported a significant beat on earnings per share, coming in at $5.90, which shattered analysts' consensus estimate of $3.27 per share.

The revenue increase was also notable, with sales rising by 11% year-over-year to $11.3 billion, essentially meeting expectations of $11.33 billion. Additionally, AI tools saw substantial growth, with Agentforce and Data 360 annual recurring revenue reaching nearly $3.9 billion, up more than 210%.

Salesforce's CEO Marc Benioff highlighted the demand for its AI and data products, stating that ARR is close to $4 billion. The company also saw significant growth in operating cash flow and free cash flow, climbing 71% and 81%, respectively.