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What’s happening: Shares of Salesforce rose sharply during after-hours trading on Tuesday, following the release of the company’s third-quarter results.
What happened: The enterprise cloud solutions company reported its earnings for the latest quarter short of market estimates.
However, Salesforce posted better-than-expected sales for the quarter and raised its guidance.
How were the results: The San Francisco, California-based company reported single-digit growth in sales for the quarter ended October 31.
Why it matters: Salesforce’s stock has remained highly volatile this year. The stock tumbling to a low of $218.01 on May 30 on expectations of the company reporting the weakest sales growth on record. It has recovered sharply since then, gaining more than 50% with rising investor confidence in the company’s new AI strategy.
Salesforce announced its AI-driven product, known as Agentforce, in October, which has been developed to complete tasks without any human supervision.
“Agentforce, our complete AI system for enterprises built into the Salesforce Platform, is at the heart of a groundbreaking transformation. The rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale,” CEO Marc Benioff said during the earnings call.
The company’s adjusted operating margins came in at 33.1% in the latest quarter, better than market expectations of 32.2%. Cash flow from operations surged 29% year-over-year. Salesforce closed the latest quarter with RPOs (remaining performance obligations) worth $26.4 billion, representing a 10% year-over-year rise.
Management guided to fourth-quarter revenues of $9.9 billion to $10.1 billion and adjusted earnings of $2.57 to $2.62 per share. They projected 2025 revenues of $37.8 billion to $38 billion and adjusted earnings of $9.98 to $10.03 per share.
The company raised its full-year GAAP and non-GAAP operating margin forecasts to 19.8% and 32.9%, respectively.
How shares responded: Salesforce’s shares climbed 10.5% to $366.30 in after-hours trading, following the release of quarterly results on Tuesday. The stock has jumped 40% over the past six months.
What to watch: Investors will continue monitoring the company’s AI strategy, which is expected to provide a significant boost to its overall results ahead.
Context: The CAD/USD forex pair edged lower this morning, as investors assessed the central bank’s monetary policy outlook.
Details: Data released last week showed Canada’s economy had expanded at an annualised rate of 1% during the third quarter, slowing from the 2.2% growth recorded in the previous quarter. The latest figure also came in lower than Bank of Canada’s projection of 1.5%.
The slowdown in GDP growth fuelled speculations of a more aggressive interest rate cut by the BoC at its meeting this month.
Weakness in the price of crude oil, one of Canada’s major exports, weighed on the loonie this morning. WTI crude oil prices slipped 0.04% to trade at $69.91 a barrel on Wednesday.
Some strength in the greenback also exerted pressure on the CAD/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained slightly to 106.39 this morning.
The CAD/USD forex pair slipped to 1.4076 this morning. The S&P/TSX Composite Index added 0.18% to close at 25,635.73 on Tuesday.
What to watch: Investors await the release of economic data on labour productivity (1730 UAE Time), S&P Global composite PMI (1830 UAE Time) and S&P Global services PMI (1830 UAE Time) from Canada today.
Labour productivity of Canadian businesses, which fell by 0.2% in the second quarter, is expected to rise by 0.2% in the third quarter. Analysts expect the S&P Global Canada Services PMI to increase to 51 in November, from 50.4 in October, while the composite PMI is projected to improve to 51.2 in November, from the previous month’s reading of 50.7.
Other Markets: US trading indices closed mixed on Tuesday, with the S&P 500 and Nasdaq 100 up by 0.05% and 0.31%, respectively, and the Dow Jones index down by 0.17%.
Ukraine’s President Volodymyr Zelenskyy said the country will need further air defence systems to save its major facilities from missile attacks by Russia. The news sent the safe-haven US dollar index higher in forex trading this morning.
Singapore’s S&P Global PMI fell to 53.9 in November, from 55.5 in the previous month, exerting pressure on the SGD/USD forex pair.
Australia’s economy expanded by 0.3% in the third quarter, compared to 0.2% in the previous three quarters. However, the latest reading falling short of market estimates of 0.4% sent the AUD/USD pair lower in forex trading this morning.
Hong Kong’s S&P Global SAR PMI declined to 51.2 in November, from 52.2 in the previous month, which exerted pressure on the HKD/USD forex pair.
South Korea’s foreign exchange reserves contracted to $415.39 billion in November, from $415.7 billion in the previous month, sending the KRW/USD pair slightly lower in forex trading this morning.
Spain’s HCOB services PMI (1215 UAE Time) and HCOB composite PMI (1215 UAE Time), Italy’s HCOB services PMI (1245 UAE Time) and HCOB composite PMI (1245 UAE Time), France’s HCOB services PMI (1250 UAE Time) and HCOB composite PMI (1250 UAE Time), Germany’s HCOB services PMI (1255 UAE Time) and HCOB composite PMI (1255 UAE Time), Eurozone’s HCOB services PMI (1300 UAE Time), HCOB composite PMI (1300 UAE Time) and PPI (1400 UAE Time), UK’s S&P Global services PMI (1330 UAE Time) and S&P Global composite PMI (1330 UAE Time), Brazil’s industrial production (1600 UAE Time), US MBA mortgage applications (1600 UAE Time), ADP employment change (1715 UAE Time), S&P Global composite PMI (1845 UAE Time), S&P Global services PMI (1845 UAE Time), ISM services PMI (1900 UAE Time), factory orders (1900 UAE Time), EIA crude oil stocks change (1930 UAE Time), EIA gasoline stocks change (1930 UAE Time), EIA distillate stocks change (1930 UAE Time) and Fed Beige Book (2300 UAE Time), as well as Brazil’s S&P Global services PMI (1700 UAE Time) and S&P Global composite PMI (1700 UAE Time).
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