Salesforce Surges on Better-Than-Expected Earnings and Accelerating AI Adoption

Salesforce shares gapped up on Thursday after the company reported better-than-expected earnings. The stock opened at $230.05, a significant increase from its previous close of $205.62.

The CRM provider's revenue rose 10.8% year over year to $11.35 billion, slightly exceeding analysts' estimates. Salesforce also topped consensus estimates for adjusted earnings per share (EPS), reporting $5.90 EPS compared to the expected $3.27.

Management increased fiscal 2027 guidance to $46.1 billion-$46.4 billion in revenue and $16.67-$16.71 in EPS, exceeding analyst expectations. The company's AI adoption is also accelerating, with Agentforce annual recurring revenue reaching $1.5 billion and management noting a sixfold increase in AI usage on the platform.

While some analysts expressed caution about the stock's volatility amid concerns about AI-driven software disruption, most remain bullish on Salesforce's prospects, with several upgrading their price targets or reaffirming Buy ratings.