Goldman Sachs: Salesforce Surges 13% After Hours as AI Upgrade Exceeds Expectations

According to Chaoxiang Research, Goldman Sachs' research report dated August 26, 2026, indicates that Salesforce delivered a full beat in its Q2 FY27 results, with shares surging 13% in after-hours trading. Q2 cRPO grew 14% year-over-year, in line with expectations, while subscription revenue beat estimates by 0.3%. EBIT and free cash flow margins expanded by 50 and 400 basis points, respectively. Third-quarter revenue guidance calls for 11% to 12% year-over-year growth, representing approximately 130 basis points of organic growth excluding Informatica, signaling acceleration in the core business. Five percent of customers have already upgraded to advanced paid tiers, with annual contract value (ACV) increasing from prior levels by 60% to 80%, significantly outpacing the previously expected 20%. The rationale behind customer upgrades has shifted from Slack adoption toward building custom AI agent stacks. Goldman Sachs reiterated a Buy rating on the stock, raising its price target from $242 to $271, implying a 32% upside. Goldman Sachs views AI monetization as being at an early inflection point, noting that an acceleration in upgrade pacing or pricing models could drive a significantly bullish scenario. Adjusted GAAP EPS for fiscal years 2027 through 2029 are projected at $16.83, $16.12, and $19.19, respectively. Downside risks include intensifying competition, lower-than-expected adoption of Agentforce, and risks associated with M&A integration.