Salesforce Stock Is Surging Thursday: What's Going On?

Salesforce Inc CRM shares are trading higher Thursday on the heels of the company's third-quarter financial results. Several analysts also raised price targets following the print.

• Q3 Revenue: $8.72 billion versus estimates of $8.72 billion
• Q3 EPS: $2.11 versus estimates of $2.06

Revenues were up 11% year-over-year, cash flow from operations was up 389% and free cash flow was up 1,088% to $1.37 billion. Operating margin came in at 17.2% in the third quarter. 

"We're now the third largest enterprise software company by revenue, the number one AI CRM and the number one enterprise apps company. Most importantly, we're bringing CRM, data, AI and trust together in a single, integrated platform, leading our customers into a new era of incredible productivity and growth," said Marc Benioff, chair and CEO of Salesforce.

Guidance: Salesforce sees fourth-quarter revenue in a range of $9.18 billion to $9.23 billion versus estimates of $8.4 billion. The company expects fourth-quarter adjusted earnings of $2.25 to $2.26 per share versus estimates of $1.98 per share. 

Salesforce expects full-year revenue to be in a range of $34.75 billion to $34.8 billion versus estimates of $31.75 billion. The company sees full-year adjusted earnings between $8.18 and $8.19 per share versus estimates of $7.35 per share. 

Analyst Changes: 

• Piper Sandler analyst Brent Bracelin maintained Salesforce with a Neutral and raised the price target from $232 to $266.
• Needham analyst Scott Berg maintained Salesforce with a Buy and raised the price target from $250 to $275.
• BofA Securities analyst Brad Sills maintained Salesforce with a Buy and raised the price target from $280 to $300.

See Also: Nasdaq, S&P Futures Rally As Market Looks Set To Finish A Strong November On Upbeat Note

CRM Price Action: Salesforce shares were up 8.96% at $251 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Salesforce.