Salesforce just had its second-best trading day ever, with shares jumping 22% after a blowout earnings report. The only time it did better was in August 2020, when the stock climbed 26%.
The company posted $11.35 billion in revenue for the quarter, slightly above the $11.32 billion analysts expected. Adjusted earnings per share landed at $5.90, crushing the $3.27 consensus estimate. Net income also soared 87% to $3.53 billion, up from $1.89 billion a year ago.
Much of that jump came from a $2.6 billion paper gain on its stake in Anthropic, an AI startup now valued at $965 billion. But even without that boost, Salesforce's core business showed strong growth.
Salesforce isn't just cashing in on its AI investments - it's putting them to work. The company announced an expanded partnership with Anthropic, integrating its Claude chatbot into Salesforce's sales tools as a new feature called "Claudeforce."
CEO Marc Benioff dismissed concerns about AI disrupting Salesforce's business model. "We've been hearing about these dire predictions for the last two quarters, about how AI will eat software, but none of them have come true for us," he said.
to work, proving the power of consistent growth. Learn how to apply this approach with our free Always Be Buying E-Book
The optimism spread across the software sector, lifting the iShares Expanded Tech-Software ETF by about 5%.
Salesforce's surge is a reminder that big tech can still deliver surprises. The stock had been lagging behind some of its peers this year, but this quarter showed that growth - especially when paired with AI - can still spark a rally.
For shareholders, the question now is whether this momentum holds. The company's earnings beat was strong, but part of the profit jump came from investment gains, not just core operations. Still, with software demand holding up and AI partnerships expanding, the sector looks healthier than some had feared.
The rally reflects renewed confidence in enterprise software, which had faced skepticism amid AI-driven disruption fears. Salesforce's results suggest that established players can adapt by leveraging partnerships rather than being displaced. The company's performance also signals resilience in corporate tech spending despite macroeconomic uncertainties.
If nothing else, it proves one thing: reports of software's death may have been greatly exaggerated.