Bernstein raised its price target on Salesforce Inc. to $195 from $173, citing accelerating demand for artificial intelligence products and sustained cloud revenue growth.
The upgrade follows Salesforce’s fiscal second-quarter 2027 results, which showed adjusted earnings per share of $5.90, exceeding the $3.27 consensus estimate. Quarterly revenue reached $11.3 billion, matching expectations and marking an 11% increase year-over-year, a record for the company. Free cash flow climbed 81% to $1.1 billion.
Cloud revenue, excluding M&A tailwinds, grew 14% in constant currency to $33.5 billion. Agentforce annual recurring revenue surged 240% year-over-year to $1.5 billion, driven by new AI offerings including Slack, Agentforce, and Claudeforce, a product developed with Anthropic.
Bernstein maintained its Underperform rating on Salesforce shares, noting that organic growth outside AI remains sluggish, with drags from Marketing, Commerce, and Tableau. The firm also highlighted that full-year revenue guidance was raised to a range of $46.1 billion to $46.4 billion, though guidance for the third quarter implied no organic acceleration. Bernstein questioned whether AI enthusiasm could be outpacing execution.
Salesforce’s gross profit margin stood at 77.6%, with a P/E ratio of 23.86 and a PEG ratio of 0.6, according to the firm’s valuation metrics. The company’s organic raise contributed approximately 40 basis points to results, while total revenue growth of 11% YoY reflected broad-based strength across cloud services.
