Salesforce, Inc. (CRM) shares have surged 34% over the past month, significantly outperforming the broader Zacks Internet – Software industry, which saw a mere 1.6% gain. This rally follows Salesforce’s strong second-quarter fiscal 2027 results, announced on August 26, which reported revenues of $11.35 billion, a 10.8% increase year-over-year. The company also raised its fiscal 2027 revenue guidance from $45.90-$46.20 billion to $46.10-$46.40 billion, indicating expected growth of 11%-12%.
Salesforce’s annual recurring revenues from its Agentforce platform exceeded $1.5 billion, marking a 240% year-over-year increase. Additionally, the current remaining performance obligation (cRPO) reached $33.5 billion, up 14% year-over-year. Despite these positive indicators, Salesforce faces challenges including longer sales cycles due to economic pressures and evolving software needs driven by generative AI.
For the third quarter, Salesforce anticipates revenues between $11.42-$11.50 billion. With a forward P/E ratio of around 16.30, below the sector average of 28.14, analysts suggest holding onto Salesforce stock, citing a potential for continued growth backed by stabilizing revenue and expansion in AI applications.
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