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Here’s Why Salesforce Stock Surged Today

What happened

Shares of Salesforce.com (CRM 9.88%) jumped 9.9% on Wednesday after the software leader delivered better-than-expected earnings and boosted its full-year profit forecast.

So what

Salesforce’s revenue rose 24% year over year to $7.4 billion in its fiscal 2023 first quarter, which ended on April 30. The cloud computing giant enjoyed strong sales growth across all its major business segments, including: 

  • Platform and Other up 55% to $1.4 billion.
  • Marketing and Commerce up 22% to $1.1 billion.
  • Sales up 18% to $1.6 billion.
  • Service up 17% to $1.8 billion.
  • Data up 15% to $1 billion.

Notably, the gains came despite a difficult macroeconomic backdrop that has dented the results of many tech companies.

“Our financial results once again demonstrate the strength and durability of our business model as we continue to see strong demand from customers across the entire Customer 360 portfolio,” Co-CEO Bret Taylor said in a press release. He added:

Salesforce has become even more strategic and relevant to our customers as we are providing them with the agility and resilience they need to drive growth and efficiency in these uncertain economic times.

Two colleagues are looking at business-performance metrics and stock charts on computers.

Image source: Getty Images.

All told, Salesforce’s adjusted earnings per share (EPS) checked in at $0.98. That bested Wall Street’s estimates, which had called for adjusted per-share profits of $0.94. 

Now what

Salesforce also lifted its full-year earnings projections. Management now expects adjusted EPS of $4.74 to $4.76, up from prior guidance of $4.62 to $4.64. 

Salesforce said it plans to rein in expenses as it strives to bolster its profitability in the coming quarters.  

“While delivering incredible growth at scale, we’re committed to consistent margin expansion and cash flow growth as part of our long-term plan to drive both top- and bottom-line performance,” Co-CEO Marc Benioff said. 

Read More: Here’s Why Salesforce Stock Surged Today

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