After its excellent earnings report demonstrated that cost reductions were effective and demand was holding up better than anticipated in a tumultuous economy, Salesforce soared by more than five percent.

The company that makes the data analytics tool Tableau and workplace messaging platform Slack was expected to increase its market value by almost $10 billion. This year alone, the stock has increased by more than 60 percent.

Salesforce increased its yearly prediction for adjusted operating margin on Wednesday from 28 percent to roughly 30 percent, emphasizing that the new number "is a floor, not a ceiling".

Wall Street analysts applauded the decision, pointing out the advantages of an aggressive profitability push for a business that has historically prioritized expanding through acquisitions.

The Marc Benioff-led company has lowered employee incentives, reduced office space, and made hundreds of layoffs this year in an effort to boost profitability, which has lagged behind competitors for years.

Margin analysts at Raymond James claimed that the "ceiling is the roof" for margins. According to Refinitiv data, the firm was one of the 26 that increased their price targets for the company, bringing the median view up to $255. That is almost 19% above the stock's most recent finish.

The report released on Wednesday also allayed some worries about the company's declining growth.

Although the second-quarter revenue increase of 11 percent was significantly slower than historical growth rates of 20 percent to 30 percent, the number easily surpassed Wall Street projections, and Salesforce also increased its yearly sales prediction.

The company has introduced a number of artificial intelligence capabilities and raised rates for the first time in seven years in an effort to combat a decline in tech investment.

The stockbroker Raymond James stated that "shares are simply too low priced" for a company performing well in a challenging economy, adding that the results should increase investor confidence in the company.

Salesforce trades at 25 times its estimated forward 12-month earnings multiple, vs a median of 15.14 for the industry.