Is it really time to buy Salesforce stock?

Roth Capital Partners analyst Richard Baldry says salesforce (salesforce.com Stock Quote, Chart, News, Analysts, Financials NYSE:CRM) still expects revenue growth to accelerate in the second half of fiscal 2027, supported by better sequential growth and AI-related product momentum.

In an Aug. 27 update, Baldry maintained his “Buy” rating and $325.00 target on salesforce.

Salesforce reported fiscal Q2 revenue of $11.3-billion, in line with Baldry’s forecast. Revenue grew 11%, or about 6% to 7% excluding the acquired contribution from Informatica.

Baldry said year-over-year growth remained soft, but sequential growth improved to 1.9%, setting up the company’s expected second-half acceleration. Salesforce believes most of its fiscal Q3 outlook is already booked, with only moderate incremental sales needed to reach its Q4 forecast.

“We still view the near-term acceleration path as an important milestone,” Baldry said.

He said salesforce’s AI-embedded products and expanded partnership with Anthropic, including ClaudeForce, appear undervalued by the market.

Current remaining performance obligation rose 14% in Q2, while the number of ramped sales representatives entering fiscal 2027 was up about 15% to 17% year-over-year.

Baldry said costs appear to be moving higher again after several quarters of discipline. Salesforce’s operating expenses rose sharply in Q2, while guidance points to another increase in Q4.

GAAP EPS was $4.29 and pro forma EPS was $5.90, both well above Baldry’s estimates, though results benefited from a $2.6-billion strategic gain. Excluding that item, pro forma EPS was $3.37, still a record and modestly ahead of his forecast.

The analyst said the record normalized EPS was largely helped by aggressive share repurchases, rather than higher operating income.

Salesforce expects to complete its $25-billion accelerated share buyback by October 2026, funded largely by a $25-billion debt deal completed in March.

Baldry said buybacks and dividends remain supportive while investors wait for revenue growth to recover, though rising stock-based compensation is a concern while growth remains weak.

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