Salesforce, Inc. (CRM) shares experienced a significant surge of over 4% in after-hours trading on Wednesday, following the release of a strong second-quarter earnings report that exceeded analyst expectations. The customer relationship management platform provider’s robust performance and optimistic outlook fueled investor confidence.
CNBC Mad Money host Jim Cramer, known for his bullish commentary, enthusiastically embraced Salesforce’s achievements. He described the company’s growth as “unstoppable,” highlighting the remarkable revenue expansion from $4.1 billion in fiscal year 2014 to a staggering $38 billion in 2025. Cramer’s endorsement echoed Salesforce Chairman and CEO Marc Benioff’s message of a bright future, accompanied by a projection of nearly doubling margins from 16.8% in 2020 to 32.8% in 2025.
Benioff emphasized that the true game-changer for Salesforce would be its newly launched “AgentForce” platform. This low-code/no-code platform empowers the creation of autonomous AI agents capable of not only providing advice but also executing tasks. “Powered by cutting-edge AI, Agentforce is transforming how we drive efficiency, growth, and unparalleled customer success,” Benioff stated. He believes this innovative technology marks the beginning of a new era in sales and customer engagement.
Following the release of the earnings report, Piper Sandler analyst Brent Bracelin maintained a Neutral rating for Salesforce stock, but raised the price target from $250 to $268. This indicates a potential upside of roughly 3.5% from current levels. Bracelin attributed the upward revision to Salesforce’s better-than-feared results, which showcased a 9% forex-neutral growth and an 11% rebound in cRPO (current remaining performance obligation). cRPO represents the total future performance obligations stemming from contractual relationships. The analyst also noted that the company’s margin expanded from 32.1% in the first quarter to 33.7% in the second quarter.
However, Bracelin also expressed some caution. He pointed out that the projected 8% growth in the second half of the year would indicate a further moderation in growth, impacted by two years of measured spending and industry constraints in the largest Americas region. Piper Sandler’s cautious outlook reflects concerns about macroeconomic uncertainty, the planned departure of the CFO at the end of the fiscal year, and the ongoing transition from applications to agents, a multi-year model shift.
“Until we see further signs of demand stabilization after three years of moderating top-line growth, we maintain our Neutral rating,” Piper Sandler stated.
Despite the analyst’s measured stance, the market reacted positively to Salesforce’s earnings report. In after-hours trading, Salesforce shares rose by 4.09% to $269.50, rebounding from a 2.01% decline during the regular trading session.
