CRM earnings were not stellar; 11% revenue growth and slight acceleration do not indicate a fundamental change in the business thesis.

Then we are going to quickly discuss what seems to be the SAS apocalypse ending and why so many software stocks have been rallying so hard with Viva Systems up over 20% over the past couple of days along with Salesforce.

The exact same thing happened to Salesforce, because Salesforce reported on the same day, and Salesforce stock has now rallied by over 25%, I believe, just going off of my memory here, but the stock also responded very, very well to its earnings report.

So, it seems like Veeva Systems and Salesforce earnings results have kind of dissipated the fears in the software industry, and now all software has been being bid up quite significantly, with even ServiceNow and even Adobe stock seeing quite a bit of momentum.

So, now let's do the same thing with Salesforce and take a quick look at its results as well. And here we can see that its revenue came in at 11% year-over-year growth. Its remaining performance obligations also grew by 11%.

Its total subscription and support revenue grew by 11% on a constant currency basis. And its Agent Force apps grew by 8% year-over-year.

This is not a blowout report, in my opinion. Salesforce is still growing, does very good, but its growth rates are not really accelerating that much, and it's still growing by only 11% per year.

However, the stock responded by being up well over 20% on the day. If we take a look at their guidance, they did up their guidance for revenue to grow by an extra $200 million this year, but it's still only projecting growth of about 11.5% to revenue this year.

It's also expecting its free cash flow to only grow by about 4.5% on a year-over-year basis, which is nothing stellar. This is not a stellar report from Salesforce.

And if we go take a quick look at Salesforce revenue and turn on its percent growth rates, we can see that its revenue has accelerated from about 8% in the first quarter of 2025 to about 11.2% now, but you can see that this is not really a large acceleration from last quarter.

It is a very, very slight acceleration, and when I'm just taking a look at this chart, it's not suggesting to me that the thesis has changed or anything really with the business is fundamentally different than it was 3 months ago.