Salesforce shares have climbed more than 70% since June, a recovery that erased a first-half decline of over 40% and pushed the relative strength index above 80. The move coincided with last week’s earnings report, which showed revenue growing 11% year on year, contracted future revenue accelerating, and customer churn falling to near-record lows.
Earnings reverse the AI disruption narrative
The results undercut the fear that had pressured the stock for months: that businesses would replace expensive software contracts with home-grown AI alternatives. Instead, customers stayed and spent more. Management raised full-year guidance on the back of that strength, and the stock jumped nearly 25% from its pre-earnings level.
Agentforce growth and the Anthropic partnership
The company’s Agentforce suite generated recurring revenue that more than tripled over the past year, turning the AI threat into an AI tailwind. The partnership with Anthropic, which brings the Claude model directly into the Salesforce platform, completes the irony: a would-be disruptor is now a key selling point.
Analyst targets imply further upside
Wall Street responded with a wave of reiterated Buy ratings. Argus, TD Cowen, Deutsche Bank, and Needham all kept positive stances, with some price targets reaching $400, roughly 55% above the current quote. The MarketBeat consensus sits at Moderate Buy with a 12-month forecast of $262.13, implying 1.47% upside from Tuesday’s $257.57 close.
The overbought signal remains the hangover
An RSI above 80 historically signals a pullback, not a launchpad. Bulls argue the fundamentals justify the stretch; bears note that momentum this extended rarely resolves without a pause. The next test is whether contracted revenue growth can sustain the multiple while the indicator cools.