Salesforce: Proving That AI Needs A Software Partner

Salesforce decisively dispelled the 'SaaSpocalypse' narrative with robust Q2 results, strong AI momentum, and a strategic partnership with Anthropic. Q2 revenue grew 11% y/y to $11.35B, with current RPO up 14% y/y, and pro forma EPS surging 102% y/y to $5.90, handily beating expectations. The Claudeforce launch with Anthropic positions CRM for significant new revenue streams, validates its relevance in AI, and extends reach to greenfield customers. Despite a 70% rebound from lows, CRM remains attractively valued at 15.3x FY27 P/E, with AI catalysts and accelerating agentic ARR supporting a confident buy rating.

One of the shortest-lived trends in the market is the notion of the "SaaSpocalypse." For a few months, software stocks suffered a deep selloff as investors believed all of the economics of the AI revolution accrued to the This article was written by Gary Alexander 34.42K Followers Follow With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.