Salesforce, Inc. CRM has staged a strong comeback after a weak first half of 2026. Shares have rallied 34% over the past month, far ahead of the broader Zacks Internet – Software industry’s 1.6% gain.
CRM has also outperformed several large enterprise software competitors, including Microsoft Corporation MSFT, SAP SE SAP and Oracle Corporation ORCL. While Microsoft has declined 1.3% over the past month, shares of SAP and Oracle have appreciated 3.2% and 5.6%, respectively.
Salesforce One-Month Price Return Performance
The sharp rally naturally raises an important question for investors: After such a big move, is it time to book profits or continue holding Salesforce stock?
The latest earnings suggest that holding the stock makes more sense for now.
Salesforce’s Growth Story Is Starting to Stabilize
Salesforce’s recent rally was driven largely by its second-quarter fiscal 2027 results, reported on Aug. 26. Since Aug. 26, CRM stock has gained 26%.
The company generated $11.35 billion in revenues, up 10.8% year over year, while subscription and support revenues rose 11.7% to $10.82 billion. Current remaining performance obligation (cRPO), a key indicator of future revenues, reached $33.5 billion, up 14% year over year.
This matters because slowing revenue growth has been one of the biggest concerns surrounding Salesforce. As the company has become much larger, maintaining the rapid growth rates of its earlier years has become increasingly difficult.
The latest quarterly numbers, however, point to a more balanced picture. During the earnings call, management stated that strong bookings, near-record-low customer attrition and stronger net new annual order value are supporting a potential second-half organic revenue reacceleration. Contract lengths for both new deals and renewals are also increasing across segments.
For the third quarter of fiscal 2027, Salesforce expects revenues of $11.42-$11.50 billion, implying 11%-12% year-over-year growth. The company also raised its fiscal 2027 revenue guidance from $45.90-$46.20 billion to $46.10-$46.40 billion, indicating 11%-12% year-over-year growth. While this is well below Salesforce’s earlier hypergrowth levels, double-digit growth is still meaningful for a company of its size. These forecasts are broadly aligned with the Zacks Consensus Estimates.
Salesforce Revenue Estimates
Salesforce Looks Beyond CRM for Growth
The bigger reason to stay invested is Salesforce’s shift from a traditional customer relationship management solution provider toward a broader AI and enterprise data platform.
