Management Raised the Bar For Salesforce Stock; Does The Chart Agree?
Salesforce (CRM) stock has gained 10.9% since the day before the company raised its fiscal 2027 profit forecast on August 26, 2026, outpacing a 1.1% return for the S&P 500. Yet a raised forecast is merely a projection of future performance. Investors must ask if the market is still buying into that promise today. Is that gain still building, or did it all come in the first two days?
Has Salesforce Stock Kept Climbing Since The Raise?
The short answer is not quite. While the stock initially surged, it recorded more than its entire advance in the first two days and has slipped ever since. Salesforce stock rose 22.5% over the two sessions around the release, while the S&P 500 gained just 0.7%. Investors priced in the entire release at once, absorbing both the quarter’s results and the new forecast immediately. Since then the stock has fallen 9.5%, while the index has added 0.4%.
The broader trend remains upward, however. Salesforce trades 1.8% above its 50-day average, which represents the average closing price over the last 50 trading days. It also sits 14.4% above its 200-day average. When a stock price stays above both benchmarks, with the shorter average tracking higher, the chart signals a clear uptrend. Even so, Salesforce is now holding only just above its 50-day average.
What Salesforce Management Raised
Management raised its fiscal 2027 guide for earnings per share to $10.21 to $10.25, from an earlier midpoint of $7.96. Most of that guidance increase is already accounted for: second-quarter GAAP earnings per share surged to $4.29 against a $1.75 guide, boosted by discrete non-operating gains while operating income remained essentially flat with the first quarter. It is important to note this is a revised forecast for the same year, rather than a final result. The sales forecast shifted far less. Salesforce now expects fiscal 2027 revenue of $46.1 billion to $46.4 billion, sitting just 0.4% above its prior guide at the midpoint.
The company noted it raised the revenue forecast by about $300 million before currency effects. Two acquisitions, Contentful and Fin, provide $200 million of that expected contribution. The existing business performed better than planned to make up the rest. However, executives said the new forecast also includes a $100 million hit from currency moves compared with the earlier projection, which is why the final midpoint rose by a smaller margin. Management credited Slack and Agentforce, its software for AI agents, for the revenue growth in the quarter. The company guided no line lower, and the forecast for cash flow growth stayed at 4% to 5%.
The Quarters Salesforce Still Has To Deliver
Salesforce reported sales of $11.35 billion for the second quarter. Measured before currency effects, that figure landed above the top of the range management had previously provided. Looking ahead, executives expect revenue of $11.42 billion to $11.50 billion for the third quarter of fiscal 2027.
The business that could push the stock higher is the shift toward premium software editions. Management noted on the August 26 call that customers need a premium edition to access the newest AI features. So far, only 5% of the people who use its sales and service software have upgraded.
Salesforce stock trades at 19.4 times earnings, against 21.9 for the S&P 500.
Salesforce’s room to run remains an open question. If third-quarter revenue clears the top of the projected range, it would signal the business is growing faster than management forecast. A quicker pace of premium edition upgrades would point to the same underlying strength. Conversely, a close below the 50-day average would break the uptrend the chart still shows.
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