This article first appeared on GuruFocus.
Salesforce (NYSE:CRM), the enterprise-software and customer-management giant, surged about 14% to $248.765 after delivering the one thing nervous investors wanted: a much bigger profit outlook. The company also widened its Anthropic partnership through Claudeforce, bringing Claude’s AI models directly into Salesforce’s enterprise ecosystem.
The company reported $11.3 billion in quarterly revenue, up 11%, while current remaining performance obligations climbed 14% to $33.5 billion. Agentforce and Data 360 annual recurring revenue blasted past $3.9 billion, rising more than 210%. Free cash flow jumped 81% to $1.1 billion. AI is no longer just a presentation slide here. It is starting to produce numbers investors can measure.
Then came the knockout punch. Salesforce raised its adjusted earnings forecast from $14.06$14.12 to $16.67$16.71 per share, lifting the midpoint by roughly 18.5%. Revenue guidance barely budged, while investment gains and a lower share count helped juice the profit increase, so this was not purely an organic-growth victory. Still, the valuation picture is hard to ignore: at $248.765, the stock sits 25.47% below its $333.76 GF Value estimate. The rally crushed some AI-disruption fears. Now Salesforce must turn that relief into lasting growth.
