Salesforce Crushes Q2 Earnings with Strong Growth and Undervaluation

Salesforce Inc (CRM) released its Q2 2027 earnings report on August 27, showcasing significant year-over-year growth. The company reported a revenue of $11.35 billion, an 11% increase from the previous year.

Subscription and support revenue reached $10.82 billion, surpassing analyst expectations with a 12% increase. Salesforce also reported a GAAP operating profit margin of 20.5% and diluted earnings per share of $4.29, a remarkable 119% increase from the previous year.

The company's strategic investment net gain of approximately $2.613 billion from its stake in Anthropic significantly contributed to the earnings. Salesforce is evolving its platform by integrating artificial intelligence (AI) into its offerings, with AI-related annual recurring revenue nearing $3.9 billion.

The company raised its revenue guidance for the full year to between $46.1 billion and $46.4 billion, reflecting strong organic growth and strategic acquisitions. According to GuruFocus, Salesforce's GF Value is calculated at $333.76, indicating that the stock is currently undervalued by approximately 38.4%.