Salesforce (NYSE:CRM) Shares Up 22.6% Following Better-Than-Expected Earnings

Salesforce Inc. (NYSE:CRM)’s share price rose 22.6% during trading on Thursday following a better than expected earnings announcement. The company traded as high as $254.48 and last traded at $252.1480. 55,342,689 shares were traded during trading, an increase of 298% from the average daily volume of 13,904,954 shares. The stock had previously closed at $205.62.

The CRM provider reported $5.90 earnings per share for the quarter, topping the consensus estimate of $3.27 by $2.63. The business had revenue of $11.35 billion for the quarter, compared to the consensus estimate of $11.33 billion. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The firm’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same period last year, the firm posted $2.91 earnings per share. Salesforce has set its FY 2027 guidance at 16.670-16.710 EPS and its Q3 2027 guidance at 3.420-3.440 EPS.

More Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Results exceeded expectations: Salesforce reported adjusted EPS of $5.90 versus the $3.27 consensus estimate, while revenue rose 10.8% year over year to $11.35 billion, broadly ahead of forecasts. Profit was also helped by a roughly $2.6 billion gain on strategic investments, including the company’s Anthropic stake. Salesforce stock jumps on AI growth and Anthropic investment gain
• Positive Sentiment: Raised guidance supports the rally: Salesforce lifted fiscal 2027 revenue guidance to $46.1 billion-$46.4 billion and EPS guidance to $16.67-$16.71. Third-quarter EPS guidance of $3.42-$3.44 also topped the $3.16 analyst estimate, signaling confidence in continued growth. Salesforce raises annual revenue forecasts on AI product momentum
• Positive Sentiment: AI momentum is easing disruption fears: Current remaining performance obligations accelerated 14% in constant currency, while Agentforce and Data 360 annual recurring revenue approached $3.9 billion. Management said AI usage has surged, strengthening the argument that AI agents can expand Salesforce’s platform rather than replace it. Salesforce Q2 results and the SaaSpocalypse bear case
• Positive Sentiment: Anthropic partnership adds strategic momentum: The new “Claudeforce” integration brings Anthropic’s Claude into Salesforce workflows, data and Agentforce, giving investors a clearer path to monetize enterprise AI. Salesforce and Anthropic announce Claudeforce
• Neutral Sentiment: Analyst reaction is favorable but not unanimous: JPMorgan and Mizuho raised their targets to $265 with bullish ratings, while Truist set $300 and Needham maintained a $400 target. However, UBS, Morgan Stanley and Wells Fargo kept neutral-equivalent ratings with targets below the current trading level; Bernstein raised its target to $195 but retained an underperform rating.
• Negative Sentiment: Valuation and platform risks remain: Some analysts argue the rally may be a temporary rebound after a prolonged decline. Salesforce is again valued above its one-year average, and Anthropic’s control of the AI orchestration layer could limit Salesforce’s long-term strategic leverage. Salesforce dead cat bounce analysis

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CRM. CLSA started coverage on Salesforce in a report on Monday, July 20th. They set a “hold” rating and a $165.00 price target on the stock. Erste Group Bank upgraded Salesforce from a “hold” rating to a “buy” rating in a research report on Wednesday, August 5th. Wedbush began coverage on Salesforce in a research note on Wednesday, July 1st. They set an “outperform” rating on the stock. Jefferies Financial Group increased their price target on shares of Salesforce from $250.00 to $300.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, Citigroup raised their price target on shares of Salesforce from $204.00 to $233.00 and gave the stock a “neutral” rating in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, sixteen have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $261.15.

Hedge Funds Weigh In On Salesforce

Hedge funds have recently added to or reduced their stakes in the company. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Salesforce in the second quarter valued at approximately $48,110,000. California State Teachers Retirement System increased its stake in shares of Salesforce by 13,260.5% during the 2nd quarter. California State Teachers Retirement System now owns 188,085,056 shares of the CRM provider’s stock worth $29,465,405,000 after purchasing an additional 186,677,290 shares during the last quarter. DMC Group LLC increased its stake in shares of Salesforce by 43.5% during the 2nd quarter. DMC Group LLC now owns 2,457 shares of the CRM provider’s stock worth $385,000 after purchasing an additional 745 shares during the last quarter. Ameritas Advisory Services LLC raised its holdings in shares of Salesforce by 154.9% during the 2nd quarter. Ameritas Advisory Services LLC now owns 11,477 shares of the CRM provider’s stock valued at $1,798,000 after purchasing an additional 6,974 shares in the last quarter. Finally, Guardian Wealth Advisors LLC NC raised its holdings in shares of Salesforce by 7.7% during the 2nd quarter. Guardian Wealth Advisors LLC NC now owns 4,412 shares of the CRM provider’s stock valued at $691,000 after purchasing an additional 317 shares in the last quarter. Institutional investors and hedge funds own 80.43% of the company’s stock.

Salesforce Stock Performance

The firm has a market cap of $206.51 billion, a price-to-earnings ratio of 29.18, a price-to-earnings-growth ratio of 1.11 and a beta of 1.16. The firm’s 50 day moving average is $177.13 and its 200-day moving average is $181.60. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.79 and a current ratio of 0.79.

About Salesforce

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.