Salesforce Surges 22.6% as Earnings Fuel AI Hype
Salesforce (CRM) stock saw a significant surge of 22.6% to around $252 by close, as investors reevaluated the company's Q2 FY2027 earnings. The basic earnings per share came in at $4.30 on revenue of $11.35 billion, placing weight behind Salesforce's already compressed trailing P/E multiple of 21.4x versus richer software peers.
The real story now moves beyond today's surge, with the question being how durable this earnings step up and valuation gap can be over the next few years. One analyst suggests that Salesforce may be trading at a genuine discount or just flattered by its $3.5 billion one-off gain and compressed 21.4x P/E multiple.
Salesforce's AI products, such as Agentforce and Data Cloud, have been touted as key drivers of revenue growth and efficiency. Q2 marks significant milestones for these products, with Agentforce annual recurring revenue (ARR) reaching $1.5 billion and bookings more than doubling quarter-on-quarter. Agent work units also hit 3.2 billion and nearly doubled in a single quarter.