Salesforce Stock Surges 22.6% on Better-Than-Expected Earnings and Raised Guidance

Salesforce's stock price surged by 22.6% following the company's better-than-expected quarterly earnings announcement. The stock traded as high as $254.48 and last traded at $252.1480, with 55,342,689 shares changing hands.

The results exceeded analyst expectations, with the company reporting adjusted EPS of $5.90 versus a consensus estimate of $3.27. Revenue rose 10.8% year-over-year to $11.35 billion, also beating forecasts. A $2.6 billion gain on strategic investments, including the Anthropic stake, contributed to the profit.

Salesforce raised its FY 2027 revenue guidance to $46.1 billion-$46.4 billion and EPS guidance to $16.67-$16.71. Third-quarter EPS guidance of $3.42-$3.44 also topped the analyst estimate of $3.16, signaling confidence in continued growth.

Analysts' sentiment is mixed, with some expressing caution about valuation and platform risks. However, many have raised their price targets on the stock, including Jefferies Financial Group, which increased its target to $300.00 from $250.00.