TLDR
- Salesforce reported adjusted EPS of $5.90, crushing the $3.27 consensus estimate, with revenue up 10.8% to $11.35 billion
- The company expanded its Anthropic partnership, integrating Claude into Agentforce and launching “Claudeforce”
- Agentforce and Data Cloud ARR approached $3.9 billion, with Agentforce ARR alone hitting around $1.5 billion
- Management raised FY2027 revenue guidance to $46.1 billion to $46.4 billion
- Wolfe Research upgraded CRM to “strong buy” while Truist raised its price target to $300
Salesforce (CRM) opened at $256.60 on Monday, trading near its 12-month high of $269.11. That move comes on the back of a strong earnings report and a deepened partnership with Anthropic that investors are clearly excited about.
The company reported adjusted EPS of $5.90 for the quarter ended August 26th, well ahead of the $3.27 analyst consensus. Revenue came in at $11.35 billion, up 10.8% year over year and just above the $11.33 billion estimate.
There is a catch worth flagging. Of that $5.90 EPS, roughly $2.53 came from strategic investment gains, including an estimated $2.7 billion unrealized gain tied to Salesforce’s stake in Anthropic. That is real money, but it is not the same as recurring operating income.
The Anthropic partnership is the other big story here. Salesforce expanded its alliance with the AI company, integrating Claude directly into Agentforce and launching something called “Claudeforce,” which embeds Salesforce CRM tools inside Claude itself. Investors liked what they saw.
Agentforce and Data Cloud combined ARR is approaching $3.9 billion, with Agentforce ARR on its own reaching around $1.5 billion. That is the kind of AI revenue number that gets Wall Street’s attention.
Analyst Reaction
The analyst community is mostly on board. Wolfe Research upgraded CRM to “strong buy.” Truist raised its target to $300, JPMorgan moved to $265, and Mizuho also landed at $265. BMO Capital raised its target from $230 to $260 with an “outperform” rating. Evercore and Citizens JMP both reaffirmed outperform calls.
Not everyone is rushing in. UBS, Citi, Morgan Stanley, and Wells Fargo kept neutral or equivalent ratings. Wells Fargo did bump its target from $205 to $230, but stayed at “equal weight.” HC Wainwright went the other way entirely, downgrading to “negative” back in June. Bank of America remains at “underperform” with a $160 target. The overall consensus sits at “Moderate Buy” with a price target of $261.15.
Some neutral voices have also pointed out that Anthropic could end up controlling the AI orchestration layer, which could limit Salesforce’s long-term strategic position, even as it benefits in the short term.
Institutional Activity
Big money has been moving into CRM. BlackRock bought a new position worth approximately $11.4 billion. J. Stern and Co. increased its stake by more than 24,000%, now holding over 47 million shares worth roughly $12.6 billion. Bank of America Corp DE and Norges Bank also opened new positions. Institutional investors now own 80.43% of the stock.
Management raised FY2027 revenue guidance to $46.1 billion to $46.4 billion and set Q3 2027 EPS guidance at $3.42 to $3.44. The company’s 50-day moving average sits at $181.24 and the 200-day at $182.47, both well below the current price.
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