Why Salesforce Stock Is Soaring This Week

CRM surged 22% this week after the company reported second-quarter fiscal 2027 results that topped Wall Street expectations. Revenue came in at $11.35 billion against consensus of $11.32 billion, while diluted EPS of $4.29 beat the $3.27 estimate by more than 30%.

The earnings beat prompted CRM to raise full-year fiscal 2027 guidance. The company now expects revenue between $46.1 billion and $46.4 billion, with EPS guidance lifted to a range of $10.21 to $10.25. The revised outlook triggered analysts to increase price targets on the stock.

Valuation metrics suggest room to run. CRM currently trades at 12.1 times operating cash flow, well below its five-year average multiple of 18.3 times. The gap implies the stock remains undervalued even after the week's sharp rally.