Why Is Salesforce Stock Up 10%?

Salesforce Q3 Performance - Salesforce reported Q3 revenue of $9.4 billion, reflecting an 8% year-over-year growth, driven by a 9% rise in subscription and support sales to $8.9 billion [2] - The company's current remaining performance obligations stood at $26.4 billion, up 30% year-over-year, slightly above street estimates [2] - Adjusted operating margin increased by 190 basis points year-over-year to 33.1% in Q3, resulting in adjusted earnings of $2.41 per share, a 14% year-over-year growth [3] - Salesforce expects Q4 revenue to rise between 7-9% and earnings to be in the range of $2.57-2.62 per share on an adjusted basis [3] CRM Stock Performance - CRM stock is up 40% year-to-date, outperforming the S&P 500 index, which is up 26% [4] - The stock has shown significant volatility in recent years, with annual returns of 14% in 2021, -48% in 2022, and 98% in 2023 [4] - Salesforce's valuation is estimated at $390 per share, based on 33x expected earnings of $11.77 per share in fiscal 2026, close to its average P/E ratio of over 32x in the last two years [5] Strategic Initiatives and Outlook - Salesforce is benefiting from its AI system, Agentforce, and continues to introduce AI capabilities across its offerings, driving increased adoption [2] - The company is focused on margin improvement and robust earnings growth in the coming years, supported by continued AI expansion [6] - Salesforce has spent nearly $8 billion on share repurchases so far this year, enhancing shareholder returns [6]