Salesforce (CRM) delivered a rare surprise this earnings season by raising its full-year sales and profit guidance, even as broader economic uncertainty continues to cloud the market. CEO Marc Benioff credited strong performance across the board, including revenue, bookings, and favorable currency impacts.

“Everything went well for us this quarter,” Benioff told Yahoo Finance. “We’re seeing exceptional results from our customers.”

Shares edged higher in Thursday’s pre-market trading after the upbeat announcement.

The software leader reported that its data cloud and AI operations are generating over $1 billion in annual recurring revenue — a 120% increase year-over-year. Meanwhile, its Agentforce technology has secured more than 8,000 deals, with roughly half of those on paid plans.

JP Morgan analyst Mark Murphy noted the company’s steady 10–11% organic growth in constant currency for its current remaining performance obligations (cRPO), adding that the results aligned with expectations.

Analyst Reactions: Divided Views Persist

Despite the improved outlook, Wall Street remains split.

Guggenheim’s John Difucci reiterated a Neutral stance, pointing out that while the Platform segment saw slight acceleration, Salesforce’s core Clouds — Sales, Service, and Marketing — all posted slowing growth. Constant currency subscription growth dipped to 8.7%, down from 9.1% last quarter and 12.8% a year ago.

KeyBanc’s Jackson Ader maintained an Overweight rating, highlighting the strong 11% cRPO growth, which beat estimates and drove bookings up 16.3% — more than double his forecast. “The core metrics were mixed,” Ader said, “but the strong bookings and optimistic outlook keep us bullish, especially at this valuation.”

D.A. Davidson’s Gil Luria kept an Underperform rating, though he raised the price target to $225 from $200. He noted that while AI drove meaningful gains, the core business segments continued to decelerate. “AI makes up 2% of the business — and it’s booming — but the other 98% is slowing,” Luria commented.

Stifel’s Lane Parker reiterated a Buy rating with a $375 price target. He believes Salesforce still has substantial growth potential, especially through its multi-cloud and industry cloud strategies. “AI is attracting attention, but there’s a long runway for mid-market and multi-cloud growth outside of AI,” Parker said.

As Salesforce navigates shifting market dynamics, the company’s AI and data bets are gaining traction — but the pace of core growth continues to fuel debate across Wall Street.

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News Source: Finance.Yahoo.com