Salesforce Earnings Spark 49% Upside Potential Amid AI Growth

Salesforce's Q2 earnings report has sparked a positive outlook for the company. The tech giant reported revenue up 10.8% to $11.35 billion, with an EPS beat of 80%. This strong performance has led analysts to raise their revenue forecast for FY27 and set a price target of $363.85, indicating nearly 49% upside potential.

Despite initial concerns that AI would disrupt Salesforce's SaaS model in early 2026, the company's Agentforce product saw ARR grow over 240%. This growth has prompted a bullish assessment of the company's valuation compared to peers Microsoft and Oracle.

However, integration risks and non-recurring gains pose caution. The overall outlook remains positive, particularly if CloudForce adoption and premium upgrades continue.