Salesforce experienced its second-best trading day ever Thursday, with shares climbing more than 20% after the company delivered strong quarterly results and unveiled a broader collaboration with the AI company Anthropic. The stock's performance trailed only August 2020, when it jumped approximately 26%.
The software giant generated $11.35 billion in revenue for the quarter, edging past the $11.32 billion that LSEG analysts had projected. This represented an 11% increase compared to the same period last year. Adjusted earnings per share reached $5.90, dramatically surpassing the $3.27 consensus estimate.
Net income totaled $3.53 billion, or $4.29 per share, marking an 87% jump from the $1.89 billion, or $1.96 per share, reported a year earlier. The company attributed part of this performance to a $2.6 billion gain linked to its stake in Anthropic, which has climbed to a valuation of $965 billion.
During a joint appearance on CNBC, CEO Marc Benioff and Anthropic's Dario Amodei presented "Claudeforce," a new plugin designed to give sales professionals streamlined access to important data through Anthropic's Claude chatbot. This tool represents a key component of the companies' deepened relationship. The integration aims to bring generative AI directly into Salesforce's customer relationship management workflows, allowing sales teams to query customer histories, generate follow-up emails, and predict deal outcomes with greater efficiency.
The positive reception to Salesforce's AI initiatives lifted sentiment across the software sector. Companies including Adobe, Palantir, Servicenow, Autodesk and Figma all saw gains, while the iShares Expanded Tech-Software ETF advanced roughly 5%. The rally reflects growing investor confidence that established software vendors can harness AI rather than be disrupted by it, a theme that has dominated tech earnings discussions this year.
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Software stocks have faced pressure throughout the year amid worries that generative AI might fundamentally alter the software-as-a-service (SaaS) business model. Benioff pushed back against these concerns during Wednesday's earnings call, noting that predictions of disruption haven't materialized for Salesforce despite two quarters of dire forecasts about the industry's future. He emphasized that the company's AI investments are already translating into tangible customer wins and higher retention rates.
The company's strong results and strategic positioning in the AI landscape suggest that established software providers can successfully adapt to technological shifts. The partnership with Anthropic, combined with the investment gains already realized, positions Salesforce to potentially benefit from continued AI adoption while maintaining its core business momentum. Analysts have noted that the deep integration of Claude into Salesforce's platform could create a competitive moat, especially as enterprises seek secure and reliable AI solutions.
As the market digests these developments, the response from investors indicates renewed confidence in Salesforce's ability to navigate the evolving technology landscape and capitalize on emerging opportunities in artificial intelligence. The stock's surge also lifted the broader tech sector, underscoring the importance of AI partnerships in driving valuation.
Correction: This story has been updated to correctly identify Salesforce's CEO as Marc Benioff. An earlier version contained a misspelling of his name.