Salesforce shares jump 5% as post-earnings rally continues

Salesforce shares rose 5% on Friday, extending gains that followed the company’s earnings report released late Wednesday. The advance pushed the stock to its best week since December 2023, with a five-day climb of 13%.

The company reported adjusted earnings per share of $3.25, exceeding Wall Street expectations of $2.86. Revenue increased 8.6% from a year earlier to $10.26 billion, slightly below analyst estimates of $10.27 billion.

The rally comes during a year of uneven performance for cloud software firms. Despite broad gains driven by artificial intelligence trends across the technology sector, several cloud companies have faced skepticism about how AI may reshape the industry. Salesforce shares remain down 22% for the year, while the Nasdaq has gained 22% over the same period.

Salesforce executives have said AI will support and improve the company’s products rather than diminish their relevance. CEO Marc Benioff said that investors misunderstand the impact of AI on software companies and that the technology strengthens, rather than threatens, the sector.

The company has expanded its AI capabilities through acquisitions. During the third quarter, Salesforce purchased Regrello and Waii, a startup that uses AI to generate code through natural-language prompts.

Analysts expect growth to improve in 2026. Mizuho analysts wrote that Salesforce remains positioned to benefit from ongoing digital transformation and is likely to maintain financial discipline while expanding operating and free-cash-flow margins.

Much of the recent optimism centers on Agentforce, Salesforce’s AI platform designed to build automated agents for business tasks. Analysts noted rising adoption in customer service and said the company’s clearer strategy could accelerate customer uptake.

Annual recurring revenue for Agentforce increased 330% year over year to $540 million. Benioff said the platform shows how AI can combine human input, data and applications to enhance company operations.