Salesforce stock surged over 10% after strong quarter, revenue growth, and expectations for Q4

From Nasdaq: 2024-12-04 23:57:13

Salesforce stock (NYSE: CRM) surged over 10% in after-hours trading on December 3, 2024, following a strong quarter. Revenue hit $9.4 billion, with adjusted earnings of $2.41 per share, slightly below estimates. The company’s AI system, Agentforce, is driving growth.

In Q3, Salesforce’s revenue rose 8% to $9.4 billion, driven by a 9% increase in subscription and support sales. Remaining performance obligations reached $26.4 billion, up 30% y-o-y. The company’s adjusted operating margin improved to 33.1%. Expectations for Q4 include revenue growth of 7-9% and earnings of $2.57-2.62 per share.

Despite volatility, CRM stock has outperformed the S&P 500 this year, up 40%. The Trefis High Quality Portfolio, with less volatility, has consistently outperformed the index. With strong earnings growth ahead, Salesforce is focused on margin improvement and shareholder returns.

Investors may see limited growth potential in CRM stock post-earnings. Valuation suggests a target price of $390 per share. Salesforce’s AI expansion and margin focus position it well for future growth. The company also spent $8 billion on share repurchases this year.



Read more at Nasdaq: What’s Happening With Salesforce Stock?