If you own Salesforce (CRM) stock, tomorrow matters. The company reports second quarter fiscal 2027 results on Wednesday, Aug. 26, after the closing bell, and the numbers could set the tone for CRM stock through the rest of the year.
Salesforce's second-quarter fiscal 2027 results will be released Wednesday, Aug. 26, after the market closes, with a live broadcast at 2 p.m. Pacific (5 p.m. Eastern) to discuss the results with the investment community.
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So what should shareholders expect, and why do so many executives keep talking about something called “Agentforce”? Here is what you need to know before the closing bell rings.
www.barchart.com What Wall Street Expects From Salesforce Stock
Analysts tracking Salesforce expect revenue of about $11.32 billion for the quarter, according to consensus estimates, indicating 10.5% year-over-year (YoY) growth. On earnings, the average estimate calls for $3.27 per share, up from $2.91 a year ago. For the full fiscal year, analysts forecast revenue of $46.11 billion and earnings of $14.14 per share.
Options traders are bracing for a bigger swing than usual. Options traders expect about an 8.01% move in either direction in Salesforce stock in reaction to Q2 earnings, a bigger implied move than the stock's average post-earnings move of 3.33% over the past four quarters.
Valued at a market cap of $171 billion, CRM stock is down 43% from all-time highs and has underperformed the broader markets in recent years.
All Eyes on Agentforce
Salesforce built its case for a second-half turnaround around one product line: Agentforce, its suite of AI-powered digital agents that handle sales, service, and marketing tasks alongside human employees.
President and Chief Marketing Officer Patrick Stokes told analysts at the Mizuho Technology Conference on June 9 that Agentforce revenue had climbed to $1.2 billion, up from $800 million previously. He also pointed to a newer metric the company calls “agentic work units,” which measures completed work rather than raw token usage.
Salesforce Chief Revenue Officer Miguel Milano made a similar case at the Bank of America Global Technology Conference on June 2. He said customers who begin an agentic project with Salesforce typically increase their spending by 50-100% after the first rollout and by three to four times once they are fully advanced.
Co-founder and Chief Technology Officer Parker Harris echoed that confidence at the Evercore Global TMT Conference on June 3, saying the company is seeing rapid adoption of its newer Headless strategy, which lets outside tools like Claude and ChatGPT tap into Salesforce data through what are called MCP servers.
Salesforce has experimented with several models for Agentforce, from per-conversation charges to flat-rate enterprise deals called Flex Credits. Chief Product Officer Bill Patterson told the Jefferies Software conference on May 28 that the industry will likely settle on a hybrid of seat-based and consumption-based pricing.
Wall Street remains largely upbeat heading into the print.
One analyst told TipRanks he is comfortable with current estimates and expects Salesforce to beat second-quarter consensus, citing strong early signs from Agentforce and Data Cloud. A Cantor Fitzgerald analyst also reiterated an “Overweight” rating and $250 price target, arguing that fears of AI disrupting Salesforce's core business are overblown.
Salesforce has beaten earnings estimates in each of the past four quarters, with an average surprise of 17.3%.
Is CRM Stock Undervalued?
Analysts tracking CRM stock forecast free cash flow to expand from $14.40 billion in fiscal 2026 (ended in January) to $20.5 billion in fiscal 2031. If the stock trades at 15x forward FCF, above its current 11.8x multiple, it could return 80% over the next four years.
Out of the 53 analysts covering CRM stock, 33 recommend “Strong Buy,” two recommend “Moderate Buy,” 16 recommend “Hold,” one recommends “Moderate Sell,” and one recommends “Strong Sell.” The average price target is $252.29, above the current price of about $209.
CRM stock's underperformance indicates that Salesforce would have to beat earnings estimates and provide an upbeat guidance to reignite investors' confidence. They want proof that Agentforce and the company's broader AI bet can reaccelerate growth in the back half of the fiscal year, something executives have promised repeatedly across investor conferences this summer.
Wednesday will be the first real test of whether that promise holds up. For anyone holding CRM stock or thinking about buying in, Aug. 26 will likely decide the next few months of trading.
www.barchart.com On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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