Salesforce Stock Surges 34% in One Month: Is It Time to Hold or Sell?

Salesforce's stock price has surged by 34% in just one month, significantly outperforming its peers in the Zacks Internet, Software industry. The company's second-quarter fiscal 2027 results, released on August 26, showed a 10.8% year-over-year increase in revenues to $11.35 billion, with subscription and support revenues rising 11.7%. The current remaining performance obligation (cRPO) grew by 14% year over year, reaching $33.5 billion.

Management pointed out that strong bookings, near-record-low customer attrition, and stronger net new annual order value are supporting a potential second-half organic revenue reacceleration. Contract lengths for both new deals and renewals are increasing across segments. For the third quarter of fiscal 2027, Salesforce expects revenues of $11.42-$11.50 billion, indicating 11%-12% year-over-year growth.

The company's shift towards a broader AI and enterprise data platform is also gaining traction. Agentforce ARR exceeded $1.5 billion in the second quarter, up more than 240% year over year. Combined Agentforce and Data 360 ARR reached nearly $3.9 billion, with customer usage growing rapidly.

Salesforce's valuation remains relatively reasonable, trading at around 16.30 times forward 12-month earnings, below the broader sector average of 28.14 times. While challenges exist due to the rapid growth of generative AI and agentic AI, which may pressure traditional enterprise software subscription models, holding Salesforce stock appears more attractive than booking profits.