Salesforce shares rose after Bank of America moved directly from Underperform to Buy and raised its price target to $285. The change reflects a more favorable view of enterprise software's defenses against AI disruption, but the investment case still rests on Salesforce's own results.
The company reported second-quarter fiscal 2027 revenue of $11.35 billion, up 10.8%, and raised full-year revenue guidance to $46.1 billion to $46.4 billion. Agentforce annual recurring revenue exceeded $1.5 billion, up more than 240% from a year earlier.
Fast AI growth, larger base
Agentforce's percentage growth is striking, but investors should compare it with Salesforce's total business. The AI product is growing from a smaller base inside a company approaching $50 billion of annual revenue. To change the consolidated growth rate, Agentforce must continue adding meaningful dollars, not only maintain a high percentage.
Salesforce said Agentforce and Data 360 ARR reached nearly $3.9 billion, up more than 210%. It also reported 7 billion agentic work units delivered to date. These operating metrics show usage, while recurring revenue provides the clearer bridge to financial value.
Bank of America's upgrade argues that large enterprises will not quickly replace the systems holding customer data, workflows and compliance rules. That switching-cost advantage is credible, but it does not remove competition. Microsoft, ServiceNow, Oracle and specialized AI vendors are all trying to capture enterprise-agent spending.
The next earnings test
Investors should track Agentforce bookings, renewal behavior, total current remaining performance obligations and organic revenue growth. Margin quality matters too, because acquisitions and strategic-investment gains can complicate reported earnings.
The upgrade is a sentiment catalyst, not proof that the AI debate is settled. Salesforce can validate the call by showing that Agentforce expands customer spending and lifts the core growth rate without sacrificing margins. If AI remains a fast-growing product inside a slower company, the rerating case will be less powerful.