TLDR
- Salesforce reports fiscal Q2 earnings after market close on Wednesday, August 26
- Wall Street expects EPS of $3.27 and revenue of $11.32 billion, up 11-12% year-over-year
- CRM stock is up 35-41% from its June low but still down 41% from its all-time high
- Options market is bearish, with a put-to-call ratio of 1.06 and a lower price target of $193
- Agentforce annual recurring revenue surpassed $1 billion and has more than doubled over nine months
Salesforce is set to report its fiscal Q2 2027 earnings after the bell on Wednesday, August 26. The stock is trading around $212, roughly 20% below its year-to-date high of $266.
Wall Street consensus is for revenue of $11.32 billion, up 11% from a year ago. Adjusted EPS is expected to come in at $3.27, up from $2.91 in the same quarter last year. Adjusted gross margin is forecast to stay above 80%.
CRM has rallied 35-41% off its June low, but it still trades at just 14 times forward earnings. That puts it below the S&P 500’s price-to-earnings ratio of 20, a reversal from the premium valuation it held before July 2025.
Simply beating the consensus may not be enough. Investors want to see real evidence that AI is adding to the business rather than cannibalizing it.
Agentforce in Focus
One of the key things the market will be watching is Agentforce, Salesforce’s own AI agent product. Annual recurring revenue for Agentforce crossed $1 billion as of the Q1 report and has more than doubled over the prior nine months. Investors want to see customer trials converting into real commercial deals.
Salesforce has also made 15 acquisitions in 15 months. The biggest was Informatica for $8 billion, which added data management tools. In June, it added Fin, an AI customer service platform, for $3.6 billion.
CRPO Growth is the Key Metric
Current remaining performance obligations, or CRPO, is the number to watch. Analysts expect it to grow more than 13% to around $33.41 billion. A beat here would signal strong future demand for Salesforce’s subscription products.
Management has previously flagged stronger organic growth in the second half of fiscal 2027, making forward guidance just as important as the headline numbers.
Salesforce has also been reshaping its pricing model. The company has moved toward a hybrid approach that mixes traditional subscriptions with consumption-based pricing. It has also released a “headless” version of its platform designed for AI agents rather than human users.
The options market is not optimistic heading in. The put-to-call ratio on contracts expiring August 28 sits at 1.06, a bearish lean. The lower-end price on those contracts is set at $193, implying a potential drop of more than 6% after the report.
CRM’s relative strength index is sitting in the mid-60s, approaching overbought territory.
Wall Street’s average price target for CRM is around $252. The August 26 earnings report is the next major test of whether that target is still realistic.
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