Salesforce’s stock rises 7% on strong quarterly earnings

Salesforce Inc.’s stock was on the rise in extended trading Wednesday after the company reported strong quarterly earnings.

“We had another strong quarter of executing on our profitable growth strategize we set in motion last year, delivering $8.7 billion in revenue and again raising our operating-margin guidance for this fiscal year,” Salesforce Chief Executive Marc Benioff said in a statement announcing the results.

The software company
CRM,
+2.41%

reported fiscal third-quarter net income of $1.22 billion, or $1.25 a share, compared with net income of $210 million, or 21 cents a share, in the year-ago quarter. Adjusted earnings were $2.11 a share.

Revenue was $8.72 billion, compared with $7.84 billion a year ago.

Analysts surveyed by FactSet had expected on average net earnings of $2.05 a share on revenue of $8.72 billion.

Salesforce offered fourth-quarter revenue guidance of between $9.18 billion and $9.23 billion. FactSet analysts are modeling fourth-quarter revenue of $9.2 billion.

Salesforce’s stock has surged 74% this year as it aggressively pursues an AI strategy. The broader S&P 500 index
SPX
is up 18.5%.

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