Salesforce Soars on Upbeat Q2 Results and Revised Guidance
Shares of Salesforce have soared in August after reporting strong financial results and guidance. The cloud computing company exceeded analyst expectations for its Q2 2027 sales, posting $11.35 billion against a predicted $11.32 billion. Additionally, it beat earnings per share (EPS) estimates with diluted EPS of $4.29 compared to the anticipated $3.27.
The improved performance has led management to revise its fiscal 2027 revenue guidance to $46.1 billion to $46.4 billion from a previous range of $45.9 billion to $46.2 billion. This upward revision has prompted analysts to take a more bullish stance on Salesforce stock, with Jefferies raising its price target to $300 from $250 and Raymond James boosting its target to $310 from $290.
Despite the significant increase in share value, investors are advised that it's not too late to buy into Salesforce. The company's stock is currently trading at 12.1 times operating cash flow, below its five-year average of 18.3. This discount combined with management's revised guidance presents a compelling opportunity for those interested in the cloud computing sector.