Salesforce Inc. surged 12.8% in after-hours trading on Wednesday after reporting quarterly results that exceeded Wall Street expectations and raising its full-year guidance.
The San Francisco-based software company posted adjusted earnings per share of $5.90 for the second quarter, surpassing the $3.27 consensus estimate by 80%. Revenue rose 11% year-over-year to $11.3 billion, ahead of the $11.1 billion recorded in the prior quarter and above analyst expectations. The company’s Agentforce and Data 360 annual recurring revenue grew over 210% to nearly $3.9 billion, while remaining performance obligations increased 14% to $33.5 billion.
Chief Executive Officer Marc Benioff described the quarter as "one of our best quarters ever" during the earnings call. The company raised its full-year fiscal 2027 revenue outlook to a range of $46.1 billion to $46.4 billion, up from prior guidance. Adjusted EPS guidance was also increased to $16.67–$16.71 for the year.
Salesforce’s stock, which had been trading near 57% of its 52-week high prior to the report, extended its gains to 41.5% in extended trading, bringing its total advance to 42% from pre-earnings levels. InvestingPro’s fair value estimate for the shares stands at $310.78, implying 34.2% upside from current levels. Separate Wall Street models peg fair value at $245 per share, suggesting roughly 55% potential upside.
In addition to the financial results, Salesforce announced a $25 billion share buyback program and a $5 billion investment in AI startup Anthropic. The moves follow a broader rally in enterprise software stocks driven by accelerating demand for AI-powered cloud solutions.
