Salesforce stock is surging a day after its blockbuster earnings report
Marc Benioff, founder, chairman and co-CEO of Salesforce, speaks at an Economic Club of Washington luncheon in Washington on October 18, 2019.
Nicholas Kamm | AFP | Getty Images
Shares of Salesforce soared more than 25% Wednesday afternoon, as investors continued to rally around the enterprise software company’s strong fiscal second-quarter earnings.
Salesforce reported adjusted earnings per share of $1.44 on revenue of $5.15 billion on Tuesday. That blew away analyst expectations of 67 cents earnings per share on revenue of $4.9 billion, according to Refinitiv.
Salesforce said in its report that its adjusted earnings were positively impacted by mark-to-market accounting for the company’s investments. Salesforce’s overall revenue grew 29% year over year in the fiscal second quarter, which ended July 31.
The earnings beat came just a day after the S&P Dow Jones Indices announced that Salesforce would replace Exxon Mobil in the 30-stock Dow Jones Industrial Average. Salesforce’s addition to the Dow will go into effect on Aug. 31.
With Wednesday’s share move, Salesforce stock is up more than 66% year to date, while its market cap sits at roughly $210 billion.
— CNBC’s Jordan Novet contributed to this report.