Salesforce Inc. delivered second-quarter results that exceeded analyst expectations, with revenues reaching $11.35 billion compared to the anticipated $11.32 billion. Adjusted earnings per share came in at $5.90, significantly surpassing the expected $3.27. The performance was bolstered by robust demand for the company’s artificial intelligence offerings, particularly its Agentforce platform.
Following the earnings announcement, Argus Research raised its price target for Salesforce to $300.00 from $290.00 while maintaining a Buy rating. The company announced that it had raised its full-year fiscal 2027 revenue guidance to a range of $46.1 billion to $46.4 billion, up from the previous guidance of $45.9 billion to $46.2 billion. This marked the second time Salesforce raised its outlook during the year. Management indicated expectations for revenue acceleration during the second half of 2027, though this remains a forward-looking projection rather than an achieved result.
The company demonstrated meaningful progress in its AI initiatives, with Agentforce and Data 360 annual recurring revenue reaching approximately $3.9 billion. Agentforce alone achieved $1.5 billion in ARR, while the company delivered more than 3.2 billion Agentic Work Units during the quarter. Current remaining performance obligations grew at a 14% rate, which analysts cited as supporting the case for future revenue growth. Additionally, Salesforce benefited from a $2.6 billion gain on strategic investments related to its stake in AI startup Anthropic.
The raised guidance incorporated organic growth of $100 million, alongside $200 million from pending acquisitions of Contentful and Fin, partially offset by a $100 million foreign exchange headwind. The stock rallied more than 20% following the announcement, one of its strongest trading days. However, analysts noted that the substantial market reaction suggests much of the anticipated growth is already reflected in the current valuation. The near-term success of Salesforce’s strategy will depend on whether AI adoption proves strong enough to meaningfully accelerate overall organic growth in coming quarters.
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