Salesforce Stock Soars 12% on Strong Earnings Report

Salesforce's stock price surged by 12% on August 26, 2026, following its impressive second-quarter earnings report. The cloud software provider exceeded Wall Street expectations with adjusted earnings per share of $5.90 and revenue of $11.35 billion.

The company's strong performance was driven by a year-over-year revenue growth of 11% and an 87% increase in net profit, amounting to $3.53 billion. A significant contributor to this success was the strategic investment in AI startup Anthropic, which yielded a $2.6 billion gain, boosting Anthropic's valuation to $96.5 billion.

Salesforce's free cash flow increased by 81% to $1.1 billion, surpassing consensus expectations of $643 million. The company projects adjusted earnings per share between $3.42 and $3.44 for the upcoming third quarter, with revenues expected to range from $11.42 billion to $11.50 billion.

According to GuruFocus, Salesforce's GF Value is calculated at $333.76, indicating that the stock is significantly undervalued at its current price of $205.62. This presents a substantial margin of safety of 38.4%, suggesting that investors may have an opportunity to acquire shares at a discount relative to their intrinsic value.