• Salesforce.com blew earnings expectations out of the water after markets closed on Tuesday, trouncing expectations for second-quarter profits and revenue.
  • The company also raised its full-year guidance above expectations, a stark pivot from its guidance cut in May.
  • Salesforce shares rallied as much as 29% on the earnings beat.
  • Bank of America raised its price target on the stock to $280 from $235, calling the quarter “stupendous” and praising the company’s organic growth.
  • Watch Salesforce trade live here.

Salesforce.com rallied as much as 29% on Wednesday after reporting a better-than-expected quarterly performance and raising its full-year sales forecast.

The software giant beat estimates for second-quarter revenue and profits as corporate clients rushed to upgrade technology amid the work-from-home shift. Subscription and support revenue surged 29% year-over-year to $4.84 billion, signaling continued demand for its business systems even as some states reopen and office activity slowly resumes.

Here are the key numbers:

Revenue: $5.15 billion, versus the $4.9 billion estimate from economists surveyed by Bloomberg.

Earnings per share: $1.44 adjusted, versus the 67 cent estimate

Full-year revenue: between $20.7 billion and $20.8 billion, versus the $20.1 billion estimate

Full-year adjusted EPS: between $3.72 and $3.74, versus the $2.96 estimate

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"It's humbling to have had one of the best quarters in Salesforce's history against the backdrop of multiple crises seriously affecting our communities around the world," CEO Marc Benioff said in the report.

Salesforce's morning surge led the S&P 500 and pushed the benchmark index slightly higher to a new record.

The guidance boost follows the company's decision in May to cut forecasts due to slowed client spending. Benioff touted Salesforce's new Work.com product - made to aid customers with remote work and reopening efforts - as an "incredible victory" and driver for the company's more optimistic outlook.

Bank of America raised its price target on Salesforce shares to $280 from $235 on Wednesday, deeming the performance "stupendous" and reiterating its "buy" rating for the company. Management's lack of acquisition plans and healthy organic growth should serve as a tailwind for quick expansion, the team led by Kash Rangan added.

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Salesforce has more to look forward to than a stronger second-half. The company is set to join the Dow Jones industrial average on August 31, further cementing its role as a cloud-software leader despite competing with industry giants including Microsoft and Adobe. Salesforce will join Honeywell and Amgen as the index's new components when Exxon Mobil, Raytheon, and Pfizer are removed.

Salesforce traded at $275.72 per share as of 11 a.m. ET Wednesday, up about 68% year-to-date.

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