Salesforce stock has gained 10.9% since the company raised its fiscal 2027 profit forecast on August 26, 2026, outpacing the S&P 500's 1.1% return over the same period. Despite this overall advance, the stock has declined in the sessions following the initial reaction to the guidance update. Investors absorbed the new projection immediately, leading to a surge that was not sustained in subsequent trading.
The stock rose 22.5% in the two trading sessions surrounding the release, a period when the S&P 500 gained only 0.7%. Since that initial spike, Salesforce shares have fallen 9.5%, while the broader index has added 0.4%. This pattern indicates that the market priced in the full impact of the earnings report and forecast revision at once.
Technical indicators suggest the broader trend remains upward. Salesforce trades 1.8% above its 50-day average, a metric representing the average closing price over the last 50 trading days. The stock also sits 14.4% above its 200-day average. When a price stays above both benchmarks with the shorter average tracking higher, it signals an uptrend, though the stock is currently holding only just above the 50-day line.
Management raised its fiscal 2027 earnings per share guidance to a range of $10.21 to $10.25, up from an earlier midpoint of $7.96. This revised forecast for the same fiscal year is distinct from final results. Most of this increase is already accounted for by second-quarter GAAP earnings per share, which surged to $4.29 against a $1.75 guide. This boost was driven by discrete non-operating gains, while operating income remained essentially flat compared with the first quarter.
The revenue outlook saw a more modest adjustment. The company now projects fiscal 2027 revenue between $46.1 billion and $46.4 billion, a figure that places the midpoint only 0.4% higher than previous estimates. Salesforce stated that it increased this revenue target by approximately $300 million before accounting for currency effects.
Two acquisitions, Contentful and Fin, contribute an expected $200 million to that increase, while the existing business performed better than planned to cover the remainder. Executives stated that the new forecast includes a $100 million hit from currency moves compared with the earlier projection, explaining why the final midpoint rose by a smaller margin. Management credited Slack and Agentforce, its software for AI agents, for revenue growth in the quarter. No line in the forecast was guided lower, and cash flow growth remains projected at 4% to 5%.
For the second quarter, Salesforce reported sales of $11.35 billion, which landed above the top of the previously provided range when measured before currency effects. Executives expect third-quarter fiscal 2027 revenue to fall between $11.42 billion and $11.50 billion.
The company noted that customers need a premium edition to access its newest AI features. Currently, only 5% of users of its sales and service software have upgraded to these premium editions. Salesforce stock trades at 19.4 times earnings, compared with 21.9 for the S&P 500.