Salesforce jumps after predicting fast gains in profitability

Salesforce gave a surprisingly upbeat forecast for the coming year and plans to step up stock buybacks, potentially easing the pressure it faces from a cadre of activist investors.

Operating margin will be about 27 per cent in fiscal 2024, which runs through next January, the software giant said in a statement Wednesday. This exceeds an average analyst estimate of 22.4 per cent, according to data compiled by Bloomberg. Salesforce also said it increased its share repurchase program to US$20 billion.

The shares gained more than 14 per cent in late trading after closing at US$167.35 in New York.