Salesforce Stock Rises on Improved Full-Year Outlook and Strong Q3 Results

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Samiat

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Nov 12, 2024
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Salesforce Stock Rises on Improved Full-Year Outlook and Strong Q3 Results

Salesforce (CRM) shares climbed in after-hours trading on Tuesday after the company raised its full-year sales and profit guidance and reported third-quarter results that exceeded analysts’ expectations.

Q3 Highlights:

Revenue: Salesforce reported $9.44 billion in revenue, an 8% year-over-year increase, surpassing analyst estimates compiled by Visible Alpha.

Earnings per Share (EPS): EPS rose to $1.58, up from $1.25 a year ago and ahead of Wall Street's expectations.


Updated Full-Year Guidance:

Revenue: The company increased the lower end of its fiscal 2025 revenue guidance to between $37.8 billion and $38 billion, up from the prior range of $37 billion to $38 billion.

EPS: Salesforce revised its earnings projection to $6.15-$6.20, compared to the previous range of $6.05-$6.13. Analysts expect full-year revenue of $37.87 billion and EPS of $6.16, according to Visible Alpha.


Stock Performance and AI Innovation:
Salesforce’s stock has surged approximately 30% since its Dreamforce event in September, where it introduced Agentforce, a suite of autonomous AI agents designed for enterprise use.

"Agentforce, our comprehensive AI system built into the Salesforce Platform, is driving a revolutionary transformation," said CEO Marc Benioff. "Autonomous AI agents are reshaping industries and redefining how organizations scale."

The company’s focus on AI innovation has bolstered investor confidence, with shares rising 8% in after-hours trading. Salesforce is up 27% year-to-date through Tuesday’s close, highlighting strong market momentum.