Salesforce (CRM) Q2 earnings beat expectations and the company raised its FY2027 revenue guidance for the second time, sending shares soaring over 20% in after-hours trading.
Salesforce reported Q2 revenue of $11.35 billion, exceeding the expected $11.32 billion. Adjusted EPS was $5.90, significantly higher than the anticipated $3.27. The company raised its full-year fiscal 2027 revenue guidance to $46.1 billion-$46.4 billion, up from the previous $45.9 billion-$46.2 billion. Argus increased its price target for Salesforce from $290 to $300, maintaining a "Buy" rating. Despite strong performance, analysis indicates that the raised guidance still relies on acquisition contributions, with organic growth only around $100 million. Future quarters will need to verify whether AI adoption can significantly boost organic growth rates.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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