Salesforce Surges 23% After Earnings Beat and AI Partnership Announcement
Salesforce stock jumped 23% after its earnings report, which included revenue of $11.345 billion, up about 11% year over year, and adjusted EPS of $5.90, beating estimates.
The beat was largely due to a $2.6 billion gain on Salesforce's Anthropic stake, which is part of the net income line. However, operating performance was also strong, with current remaining performance obligations reaching $33.5 billion, up 14% year over year in constant currency, and free cash flow rising 81% to $1.1 billion.
The company also raised its full-year revenue outlook to $46.1, $46.4 billion from $45.9, $46.2 billion, an increase of $200 million or $300 million in constant currency.
Salesforce's partnership with Anthropic and the announcement of Claudeforce, a new AI-powered platform, also contributed to the stock's surge. However, some analysts are cautioning that the market may have overreacted, as the revenue beat was razor-thin at 0.25%, while the earnings beat was more significant.