CRM posted strong quarterly results (triple beat) causing a sharp post-earnings rally, but faces ongoing skepticism regarding its ability to sustain growth against AI disruption.

We have Salesforce which continues to uh ask people the question you know is software dead is there real sustainable growth in the world of AI for companies that theoretically can be replaced again that's up to Salesforce service now all these companies to prove that narrative is wrong

In the meantime, we should be getting Salesforce, Synopsis, Crowd Strike, uh, and a few others that are actually going to be pretty important.

Okay, Salesforce already making the move 4%. The stock was at 150 at the lows this year. That is up four and a half% after hours. I'll try to get the numbers on Salesforce in a second, but that goes green.

Okay, so Salesforce, here we go. We have um operating income 3.87 billion versus 3.81. That's a beat. Adjusted EPS 590 versus 291. There's got to be some unrealized gains that they've factored into that.

They beat by 80% on EPS, 11.34 versus 11.32 on revenue. Revenue is up 12% year-over-year. EPS is up 103% year-over-year. Maybe they had a SpaceX stake. Um I know they have an anthropic stake but until that one goes public I don't know if they well no technically I think they can uh mark to market their value on enthropic.

So maybe it's anthropic that's creating that uh beat for them. And then third quarter revenue the street wanted 11.4 they're guiding for 11.5. So that is a triple beat on the guide revenue and EPS that stock is up 5.6% after hours.

And then third quarter revenue the street wanted 11.4 they're guiding for 11.5. So that is a triple beat on the guide revenue and EPS that stock is up 5.6% after hours.

and Open AI, two OpenAI executives leave OpenAI and go back to Salesforce. Pretty wild. No, I mean there's there's a lot of speculation whether the IPO is not going to be as exciting.

Um, you know, disbelief in their ability to replace SAS and that but but who knows? Maybe maybe Salesforce is poaching these guys back and putting up big numbers in order to sign back these executives. I'm not sure. I think it's too early to tell.

Maybe maybe Salesforce is poaching these guys back and putting up big numbers in order to sign back these executives. I'm not sure. I think it's too early to tell.

Right there a 12 $2.4 $4 impact from strategic investments from uh Salesforce. That's got to be entropic.

Here's the coverage on Salesforce. It was 11.34 billion in revenue for the quarter versus about 11.32 on the estimate. Bottom line, we've got an adjusted EPS number, $5.95.90, I should say.

That is the adjusted number. We're not going to compare this one. There is from what we're seeing a massive investment gain about $2.6 billion. It does appear to be from an investment in

That you can use Cloud Force to not only query your systems, but build applications dynamically. It's really a first in the industry, Jim. We've never seen anything like it. It's completely exciting.

I think that this is the way all enterprise systems are going to run in the future.

we've never seen Daario do this on an earnings. So this partnership must mean something to them if he's actually willing to talk to the media with Beni off here.

Salesforce, fantastic numbers. But I do want to ask you, I know I norally should ask Mark this, but I want to get to Dario. You know, there's this whole SAS apocalypse thing of which we thought that you were going to destroy Mark.

I I know Mark has a big investment in you, but I was waiting for you to put him out of business. What do you think about the SAS apocalypse thesis?

We're not interested in destroying destroying anyone. uh you know we think of this as a very positive something right that's the way that's the way markets work we're creating new value here and and the question is just you know how it's not about destroying anyone it's about how much of these enormous gains go to various various people and various companies and our philosophy always has been that we want to work with our customers we want to empower empower our customers to share these gains with us and so we've already worked with Salesforce in a number of ways.

We're big users of Salesforce. Salesforce is big users of Claude Code, of Co-work, of other tools. We've put products like Claude Tag in Slack already, um, which is which is a part of Salesforce.

And now this combination is a way to to gain something that's, you know, it's 1 plus 1 equals 3, something that's bigger than the sum of its parts. And and I think that's the right way to think about things.

I think another point you have you really have to add to that which is that >> number one this isn't our first product you know with Enthropic we've got a several products with them that we're so excited that we built including Slack code but Jim you have to think of it like this Salesforce is very much a deterministic system it's a system that is all about security and rules and governance and workflows and if this happens that happens it's about determinism And you now you have this incredible probabilistic system, these large language models, you know, this incredible technology that Daario has built.

It's non-deterministic. But when you put these two things together, the idea that you could have a probabilistic LM and AI that's working now perfectly with a deterministic system like Salesforce, the result is incredible.

We we would never have seen this kind of power and our customers are going to be able to build these amazing new applications dynamically.

Neil, you trust what Dario is saying here that they're not trying to kill software companies. Um, if you go back to his very long post on X and you read what he wrote there, I'm really not surprised that suddenly he's popping up on on TV trying to explain all of this, especially not when you're trying to go public in a month or two.

So, I'm not surprised. I mean, last year Salesforce announc announced something a collaboration with Open AIS and now they have something with Entropic. Okay, cool. But at the end of the day, Salesforce better watch their back because I'm pretty sure that uh Entropic and Dario are not going to think twice about ruining their business.

I mean, that that would be kind of crazy, right? If Anthropic comes out with a competing CRM, maybe Benny off did this to kind of create a relationship that would uh legitimize Anthropic because there's a go to market in the enterprise and also make sure Anthropic doesn't stab them in the back.

But then again, you know, business is kind of ruthless. If they were to do that, it would be quite surprising.

Salesforce still up. I mean, you're still seeing the software name Salesforce up 13%. Last time Salesforce was at $232, uh, January of this year. Actually, got to go back to December of last year.

So, it's been a while since Salesforce hit these levels.

Salesforce obviously getting a big move here that Jensen has been saying for for months now that these companies are not going to be dead.