Salesforce Soars on Higher Profit Margins Amid Activist Pressure
- Company expects to make quick headway on profit margins
- Activist investors have targeted the stock in recent months
This article is for subscribers only.
Salesforce Inc. surged by the most in almost three years after raising its forecast for profit margins and doubling stock buyback plans amid pressure from activist investors.
Operating margin — which has become a very closely watched metric for Salesforce — will be about 27% in the fiscal 2024 that runs through next January, the software giant said in a statement Wednesday. That trounced an average analyst estimate of 22.4% in part due to recent jobs cuts. Before the emergence of activists including Elliott Capital Management, Salesforce had been aiming for margins to hit 25% by fiscal 2026.