Salesforce AI Strategy Pays Off as Earnings Report Crushes SaaSpocalypse Fears
25 Sources
[1]
Salesforce raises annual revenue forecasts on AI product momentum
Aug 26 (Reuters) - Salesforce (CRM.N), opens new tab raised its annual revenue forecast on Wednesday, signaling confidence that enterprise adoption of its new AI-powered autonomous agents will accelerate sales. Shares of the San Francisco-based company rose 7% in extended trading. The forecast
[2]
This software stock's AI pivot is starting to pay off, Goldman Sachs says
Salesforce 's deepening push into artificial intelligence is showing signs of paying off, and that should continue to benefit its stock, according to Goldman Sachs. The investment bank has a buy rating on the software name. It also has a $271 price target on shares, implying 32% upside from
[3]
We're raising our price target on Salesforce after results defy 'SaaSpocalypse'
Salesforce came through in the clutch. The enterprise software giant on Wednesday delivered better-than-expected results for its fiscal second quarter and issued guidance for the current period that makes good on the company's pledge to reaccelerate into the end of the year. The one-two punch not
[4]
Salesforce Q2 earnings beat; Claudeforce AI plugin launched with Anthropic
Salesforce stock climbed more than 12% in after-hours trading Wednesday. The stock had been down 22% for the year through Wednesday's close. Combined annual recurring revenue from Agentforce and Data Cloud AI products reached nearly $3.9 billion, reflecting growth of more than 210% from the prior
[5]
Salesforce CEO Marc Benioff says the 'SaaSpocalypse' is nonsense. Here's why
* Salesforce CEO Marc Benioff pushed back against "SaaSpocalypse" fears. * "This SaaSpocalypse narrative has been such nonsense," Benioff said on CNBC's "Mad Money." "Frontier models depend on CRM. They don't replace it." In this article * ANTHR.FG * CRM Follow your favorite stocksCREATE FREE
[6]
Salesforce scoffs at SaaSpocalypse fears with a crushing earnings beat
Salesforce scoffs at SaaSpocalypse fears with a crushing earnings beat Shares of Salesforce Inc. jumped more than 13% in late trading after the customer relationship management software provider delivered strong second-quarter earnings and revenue and issued guidance that exceeded Wall Street's
[7]
Salesforce Q2 FY2027 earnings beat, raises full-year revenue guidance
The software company reported $11.35 billion in second-quarter revenue and now expects $46.1 billion to $46.4 billion for the full year Salesforce $CRM reported second-quarter revenue of $11.35 billion on Wednesday, up 11% from a year earlier, and raised its full-year revenue guidance by $200
[8]
Salesforce shares jump on strong earnings, raised FY27 outlook - Salesforce Stock Surges 23%
Salesforce shares jump on strong earnings, raised FY27 outlook 1/9 Salesforce Stock Surges 23% Salesforce shares jumped 22.6% on Thursday, marking the company's second-biggest one-day gain ever. The rally followed better-than-expected fiscal second-quarter results, higher full-year guidance and
[9]
CRM Stock's Best Week In 5 Years On Anthropic AI Deal - Salesforce (NYSE:CRM)
Salesforce Inc. (NYSE:CRM) rallied 24% this week, marking its strongest weekly gain since August 2020. The software giant also topped the S&P 500's top-performing leaderboard for the week. The rally followed Wednesday's blockbuster second-quarter print: adjusted EPS of $5.90 crushed the $3.27
[10]
Salesforce Q2 Quells 'SaaSpocalypse' Fears: Analysts Respond - Salesforce (NYSE:CRM)
Salesforce's Q2 Results Squash 'SaaSpocalypse' Fears: On Track for H2 Organic Revenue Reacceleration Shares of Salesforce Inc (NYSE:CRM) rallied in early trading on Thursday, after the company reported upbeat second-quarter results. * Salesforce stock is surging to new heights today. What's going
[11]
Salesforce just gave Wall Street a reason to believe its AI story
Companies have long promised that artificial intelligence will boost worker productivity. Salesforce (CRM) needs to prove customers will pay for it now. The software giant raised its full-year revenue and profit guidance after second-quarter revenue climbed 11% to $11.35 billion. Salesforce also
[12]
Salesforce Stock Rockets 20% on Anthropic Windfall, Guidance Raise - Salesforce (NYSE:CRM)
Salesforce Inc. (NYSE:CRM) shares surged as much as 20% on Thursday after the enterprise software giant posted a sweeping fiscal second-quarter beat and lifted its full-year outlook. * CRM stock is soaring after earnings. See the real-time price action here. Anthropic Stake Fuels the Profit
[13]
Salesforce Q2 Earnings: What Investors Should Know About CRM Stock, AI Growth
CRM stock: Revenue guidance, AI traction and fiscal-year outlook could matter more than a small earnings-per-share beat. Salesforce faces a key test as it prepares to report fiscal Q2 results after the U.S. market close on August 26. Wall Street expects revenue of about USD 11.33 billion and
[14]
Software earnings show AI as a revenue driver, with Salesforce and CrowdStrike leading gains By Investing.com
Investing.com -- Software earnings this week delivered a decisive verdict: AI is a revenue engine, not a wrecking ball. Salesforce surged +21.6% and CrowdStrike jumped +19.4% after both crushed estimates and raised guidance, with Agentforce annual recurring revenue hitting $1.5 billion -- up 240%
[15]
Why Is Salesforce Stock Soaring Thursday? - Salesforce (NYSE:CRM)
Salesforce, Inc. (NYSE:CRM) stock traded higher by about 13% during Thursday's premarket session as investors reacted to a Q2 double beat and upbeat guidance alongside a new "Claudeforce" partnership with Anthropic. Nasdaq futures are up 1.06% while S&P 500 futures have gained 0.43%. Salesforce
[16]
Salesforce earnings analysis: questions answered and next catalysts By Investing.com
Investing.com -- Salesforce just delivered a fiscal Q2 2027 earnings report that beat expectations -- adjusted EPS of $5.90 exceeded the $3.27 consensus by more than 80%, while free cash flow surged 81% year-over-year to $1.1 billion. The stock is up 22% today at $250.89, and management raised
[17]
Salesforce Posts Higher 2Q Profit, Expands Partnership with Anthropic -- 2nd Update
Salesforce posted higher second-quarter profit and revenue on rising demand for its artificial-intelligence and data offerings, and also expanded its partnership with the AI company Anthropic. The results prompted the enterprise software company to bump up its full-year sales and profit forecasts,
[18]
Salesforce CEO Dismisses 'SaaSpocalypse' Fears as 'Nonsense' After CRM's Record Q2: 'Time for It to Stop'
Salesforce Inc. (NYSE:CRM) delivered a record second quarter with accelerating bookings and revenue, prompting CEO Marc Benioff to forcefully dismiss industry fears of an AI-driven software collapse as the "nonsense of this SaaSpocalypse." Crushing the 'SaaSpocalypse' Narrative Benioff declared
[19]
Stifel raises Salesforce stock price target on AI product momentum By Investing.com
Investing.com - Stifel raised its price target on Salesforce.com stock (NYSE:CRM) to $275 from $250 while maintaining a Buy rating on Thursday. The stock currently trades at $205.62, with a P/E ratio of 23.86 and an attractive PEG ratio of 0.6, suggesting the company is trading at a low multiple
[20]
Salesforce jumps on AI momentum and its stake in Anthropic
For the third quarter, Salesforce is targeting revenue of $11.42bn to $11.50bn and adjusted profit of $3.42 to $3.44 per share, above the consensus. The group also raised its full-year targets, with revenue now expected between $46.1bn and $46.4bn and earnings per share of $16.67 to $16.71.
[21]
Salesforce Stock Soars On Q2 Double Beat, 'Claudeforce' Anthropic Partnership - Salesforce (NYSE:CRM)
Salesforce Inc (NYSE:CRM) reported financial results for the second quarter of fiscal 2027 after the close on Wednesday. Here's a look at the key details from the print. * Salesforce stock is trending. What's the outlook for CRM shares? Salesforce Q2 Key Metrics Salesforce delivered
[22]
Salesforce jumps 11% following earnings blowout and upgraded outlook By Investing.com
Investing.com -- Salesforce (NYSE: CRM) reported quarterly results that topped Wall Street expectations, driven by a surge in artificial intelligence demand, sending shares climbing 11% in premarket U.S. trading on Thursday. The enterprise software provider logged adjusted earnings per share of
[23]
Salesforce 2Q Profit, Revenue Rise on Demand for AI, Data Products
Salesforce posted higher second-quarter profit and revenue on rising demand for its artificial-intelligence and data offerings. The results prompted the enterprise software company to bump up its full-year sales and profit forecasts, factoring in a boost in organic growth as well as acquisitions
[24]
Bernstein raises Salesforce stock price target on AI growth By Investing.com
Investing.com - Bernstein SocGen Group raised its price target on Salesforce.com (NYSE:CRM) shares to $195 from $173 on Thursday while maintaining an Underperform rating. The firm noted Salesforce delivered second-quarter fiscal 2027 results and raised guidance. Excluding tailwinds from mergers
[25]
Why is Salesforce stock surging today? By Investing.com
Investing.com -- Salesforce stock surged 12.8% in after-hours trading after the cloud software giant reported fiscal second-quarter 2027 results that far exceeded Wall Street's expectations on every key metric, sending shares to $232. Revenue came in at $11.35 billion against the $11.32 billion
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Salesforce delivered a standout earnings report with revenue of $11.35 billion and raised its fiscal 2027 forecast to $46.4 billion. The company's AI strategy is gaining momentum as Agentforce surpassed $1.5 billion in annual recurring revenue, growing 240% year-over-year. CEO Marc Benioff dismissed SaaSpocalypse concerns, announcing the Claudeforce partnership with Anthropic to prove AI-powered autonomous agents strengthen rather than replace traditional CRM platforms.
Salesforce Earnings Report Exceeds Expectations
Salesforce posted strong financial results for its fiscal second quarter, with revenue reaching $11.35 billion, surpassing analyst expectations of $11.32 billion and marking 9.9% year-over-year growth
1
. The company reported adjusted earnings of $5.90 per share, well above the $3.27 consensus estimate, driven partly by a $2.6 billion gain on strategic investments tied to its stake in Anthropic2
. Quarterly net income reached $3.53 billion, compared to $1.89 billion in the same period last year4
. The stock price surged more than 12% in after-hours trading, reversing a 22% year-to-date decline and reaching levels last seen in late January3
.
Source: Benzinga
AI Strategy Fuels Revenue Growth
The company's AI pivot is showing tangible results, with CEO Marc Benioff announcing that annual recurring revenue for AI and data products is about to cross $4 billion
1
. Agentforce, the company's suite of AI-powered autonomous agents that automate sales, service, and marketing tasks, surpassed $1.5 billion in ARR, representing 240% year-over-year growth4
. This marks a sequential acceleration from $1.2 billion in the first quarter and $800 million in the fourth quarter of fiscal 20263
. Combined with Data Cloud AI products, the total ARR reached nearly $3.9 billion, reflecting growth of more than 210% from the prior year4
.
Source: Benzinga
Marc Benioff Dismisses SaaSpocalypse Narrative
Marc Benioff directly addressed concerns that AI displacing traditional SaaS models would undermine the software-as-a-service business model. "This SaaSpocalypse narrative has been such nonsense," Benioff told CNBC's "Mad Money." "Frontier models depend on CRM. They don't replace it"
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. He pointed to data showing that nine of the ten leading AI companies use Salesforce and Slack, with their spending surging 435% year-over-year5
. The CEO emphasized that skeptics' predictions about declining seats and customer attrition proved false, with attrition near its lowest level ever and contract length terms improving across all segments3
.Claudeforce Partnership with Anthropic
Salesforce unveiled Claudeforce, a new product integration with Anthropic, allowing salespeople to use Claude chatbot to access customer data stored in Salesforce and perform tasks such as composing emails and updating records
5
. Benioff argued that AI models like Claude rely on the customer data, business context, and workflows housed on CRM platforms, positioning Salesforce as a foundation for AI agents rather than a replacement target. "Salesforce is first and foremost in the data business," Benioff explained. "These AI models need this level of intelligence, security and controls for users"5
.Raised Fiscal 2027 Guidance
Salesforce raised its fiscal 2027 revenue forecast to between $46.1 billion and $46.4 billion, up from the prior outlook of $45.9 billion to $46.2 billion
1
. The company also increased its annual adjusted earnings per share forecast to between $16.67 and $16.71, compared to the earlier range of $14.06 to $14.121
. For the fiscal third quarter, Salesforce estimates earnings of $3.42 to $3.44 per share on revenue between $11.42 billion and $11.50 billion, exceeding Street consensus estimates2
.
Source: Market Screener
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Goldman Sachs Upgrades Outlook
Goldman Sachs analyst Gabriela Borges issued a buy rating with a $271 price target, implying 32% upside potential. "While there are still several hurdles to navigate as competition evolves, we believe Salesforce is in the early stages of showing success on both product maturity and monetization maturity," Borges wrote
2
. The analyst noted that AI-driven growth is accelerating through multiple avenues in the front office stack. Of 54 analysts covering Salesforce, 40 have a buy or strong buy rating on the stock2
.Slack Emerges as Growth Driver
Slack continues to be a bright spot, reversing criticisms from when Salesforce acquired the workplace messaging app during the Covid-19 pandemic. The platform saw triple-digit bookings growth in the quarter, with net new average order value growing at its fastest quarterly rate since the acquisition closed in July 2021
3
. "The numbers are just awesome, and it's because every new company in AI is built on Slack," Benioff said3
. This performance demonstrates how AI product momentum is strengthening existing business units rather than cannibalizing them, validating the company's broader AI strategy and positioning for sustained growth in an AI-transformed enterprise software landscape.References
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