Salesforce raises annual profit view on steady cloud demand

(Reuters) -Salesforce raised its forecasts for annual profit and the lower end of its revenue on Wednesday, benefiting from a strong demand for its cloud and business products in an uncertain economy.

Its shares rose 7% after the bell as it also forecast fourth-quarter revenue and profit above expectations and exceeded Wall Street targets for the third quarter.

The upbeat forecast raises optimism that tech spending has picked up pace in the second half of the year as inflation cools, aiding demand for a major cloud player like Salesforce (NYSE:).

The company raised its full-year adjusted profit forecast to between $8.18 and $8.19 per share from $8.04 to $8.06 it had expected previously.

Salesforce had said in September that it would hire more than 3,000 people across various departments after cutting jobs by 10% in January to drive up margins.

The profit forecast showcases the profitability push is paying off for a company that has primarily gained market share through acquisitions and by expanding its product portfolio.

The company expects fourth-quarter adjusted profit in the range of $2.25 to $2.26 per share compared with estimates of $2.17.

The company said it expects revenue between $9.18 billion and $9.23 billion, the midpoint of which exceeded estimates of $9.21 billion, according to LSEG data.