Salesforce Raises Revenue Guidance Amid Strong Q2 Performance
Salesforce Inc. reported strong second-quarter results, with revenue of $11.35 billion surpassing expectations. The company's AI tools, particularly Agentforce and Data 360, contributed to a significant increase in annual recurring revenue (ARR), reaching nearly $3.9 billion. Analysts at Argus upgraded their price target for Salesforce from $290 to $300 while maintaining a Buy rating. Salesforce raised its full-year fiscal 2027 revenue guidance to between $46.1 billion and $46.4 billion, citing strong current remaining performance obligations (cRPO) growth of 14%. However, the company's optimism is based on expected future results rather than delivered outcomes so far. Despite a recent stock rally exceeding 20%, concerns remain about whether Salesforce can sustain organic revenue acceleration without relying heavily on acquisitions. The firm’s guidance includes $300 million from pending acquisitions and faces a $100 million foreign exchange headwind.
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Topics: AI adoption cRPO growth guidance revision