Salesforce Stock Jumps on Two Uncompleted Deals

Salesforce's stock price rose by 22.4% over the week ending August 28, significantly outperforming its peers in the enterprise software sector. The company's fiscal 2027 revenue guide was raised by about $300 million in constant currency, but this increase is largely due to two deals that have not yet closed.

The underlying business, however, shows significant growth, with Agentforce annual recurring revenue reaching $1.5 billion and the number of customers running agents increasing by 70%. The company also announced a product built with Anthropic, which will reach general availability in September and is expected to drive premium edition sales.

The market repriced Salesforce's stock based on the potential for these deals to drive growth, but the underlying business shows that the fear of AI models making its software unnecessary has been largely alleviated. The company's cash flow rose by 81% year over year in fiscal Q2 2027, and management guides full-year operating and free cash flow growth at approximately 4% to 5%.