Mizuho Boosts Salesforce Price Target to $265

Mizuho has raised its price target for Salesforce to $265 from $250, while maintaining an Outperform rating. The firm cited Salesforce's strong second-quarter results, which showed current remaining performance obligation growth of 14% on a constant currency basis, exceeding the estimate of 10% organic constant currency growth and management's 13% guidance.

The company's Agentforce annual recurring revenue grew more than 240% year-over-year, while its gross profit margin was 77.6%. Management anticipates current remaining performance obligation to grow approximately 14% year-over-year on a constant currency basis in the third quarter, more than a point above consensus.

Mizuho stated that the results support its view that calendar year 2026 should be a stronger year for Salesforce, with modest organic revenue re-acceleration expected in the second half of fiscal 2027. The firm noted that Salesforce remains committed to profitable growth and trades at 13 times calendar year 2027 estimated free cash flow.