Salesforce Beats Estimates, Analysts Raise Price Targets

Salesforce Inc reported better-than-expected fiscal second-quarter financial results on Wednesday and raised its fiscal 2027 guidance.

Salesforce posted second-quarter revenue of $11.35 billion, surpassing the consensus estimate of $11.32 billion. The enterprise software company reported adjusted earnings per share of $5.90, beating expectations of $3.27.

Salesforce raised its fiscal 2027 revenue outlook to a new range of $46.1 billion to $46.4 billion, up from the prior range of $45.9 billion to $46.2 billion, while the market expected $46.11 billion. The company lifted its full-year adjusted EPS guidance to a new range of $16.67 to $16.71, up from the prior range of $14.06 to $14.12, versus the market expectation of $14.14.

Salesforce Chair and CEO Marc Benioff said: "We just delivered one of our best quarters ever, outperforming on every key metric. AI is creating value at every layer of our platform. We are seeing incredible demand for our AI and data products, with annualized recurring revenue about to surpass $4 billion. With our trusted enterprise-grade tool, AIforce, we are unlocking the data, workflows, business logic, operations, and governance inside Salesforce and making it available to every agent, model, and interface. That's how we are turning AI into customer success at an unprecedented scale."

Salesforce shares rose 11.2% to $228.55 in pre-market trading.

Following the earnings release, these analysts adjusted their price targets for Salesforce.

BTIG analyst Allan Verkhovski maintained a Buy rating on the stock and raised the price target from $255 to $300.

Evercore ISI Group analyst Kirk Materne maintained an Outperform rating and raised the price target from $250 to $290.

Truist Securities analyst Terry Tillman reiterated a Buy rating and raised the price target from $280 to $300.

DA Davidson analyst Gil Luria maintained a Neutral rating and raised the price target from $175 to $200.

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