Quick Overview
- Salesforce delivered adjusted earnings per share of $5.90, substantially exceeding the analyst consensus of $3.27, while revenue climbed 10.8% to $11.35 billion
- The company deepened its collaboration with Anthropic, embedding Claude within Agentforce and unveiling “Claudeforce”
- Combined ARR for Agentforce and Data Cloud neared $3.9 billion, with Agentforce ARR independently reaching approximately $1.5 billion
- Leadership increased fiscal 2027 revenue projections to a range of $46.1 billion to $46.4 billion
- Wolfe Research elevated CRM to “strong buy” status while Truist Securities lifted its price objective to $300
Salesforce (CRM) kicked off Monday’s session at $256.60, hovering close to its 12-month peak of $269.11. The upward momentum follows an impressive quarterly performance and an expanded collaboration with Anthropic that has captured investor enthusiasm.
The enterprise software leader delivered adjusted earnings of $5.90 per share for the quarter concluding August 26th, significantly surpassing the Street’s expectation of $3.27. Quarterly revenue reached $11.35 billion, representing a 10.8% year-over-year increase and marginally topping the $11.33 billion forecast.
However, there is an important nuance to consider. Approximately $2.53 of that $5.90 earnings figure originated from strategic investment gains, which includes an estimated $2.7 billion unrealized gain connected to Salesforce’s equity position in Anthropic. While this represents genuine value, it differs fundamentally from sustainable operational earnings.
The strengthened Anthropic collaboration represents another major development. Salesforce broadened its relationship with the AI innovator, incorporating Claude directly within Agentforce and introducing “Claudeforce,” which integrates Salesforce CRM capabilities into Claude’s interface. Market participants responded favorably.
The combined annual recurring revenue for Agentforce and Data Cloud is nearing $3.9 billion, with Agentforce independently generating approximately $1.5 billion in ARR. These are the types of AI-driven revenue figures that command Wall Street’s attention.
Wall Street’s Take
The analyst community has largely embraced the results. Wolfe Research elevated CRM to “strong buy.” Truist Securities increased its price target to $300, JPMorgan adjusted to $265, and Mizuho similarly set a $265 objective. BMO Capital Markets raised its target from $230 to $260 while maintaining an “outperform” stance. Both Evercore ISI and Citizens JMP reaffirmed their outperform ratings.
However, not all voices are bullish. UBS, Citi, Morgan Stanley, and Wells Fargo maintained neutral or comparable ratings. Wells Fargo increased its target from $205 to $230 but held at “equal weight.” HC Wainwright took a contrarian position, downgrading to “negative” earlier in June. Bank of America continues with an “underperform” rating and a $160 price target. The Street consensus stands at “Moderate Buy” with an average target of $261.15.
Some cautious observers have noted that Anthropic might ultimately dominate the AI orchestration layer, potentially constraining Salesforce’s long-term competitive positioning, despite near-term advantages.
Institutional Investor Moves
Institutional capital has been flowing into CRM. BlackRock established a new position valued at approximately $11.4 billion. J. Stern and Co. expanded its holdings by over 24,000%, now controlling more than 47 million shares valued at roughly $12.6 billion. Bank of America Corp DE and Norges Bank also initiated new positions. Institutional ownership now represents 80.43% of outstanding shares.
Leadership revised fiscal 2027 revenue guidance upward to $46.1 billion to $46.4 billion and established Q3 2027 EPS guidance at $3.42 to $3.44. The stock’s 50-day moving average stands at $181.24 with the 200-day average at $182.47, both considerably below current trading levels.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
