CRM Stock Alert: Salesforce (CRM) Surges on Blowout Earnings—Should You Buy Before the Next High?

Salesforce’s CRM Stock Pops After Record Q1 FY 2026 Earnings and Raised Outlook Salesforce (NYSE: CRM) delivered a first-quarter beat that instantly reignited investor interest in the cloud pioneer’s shares. Revenue reached $9.83 billion, up 8 % year over year and about $80 million ahead of Wall Street estimates, while adjusted EPS of $2.58 topped consensus by four cents. GAAP operating margin expanded to 19.8 %, and free cash flow hit $6.3 billion, a Q1 record. Why the CRM Stock Surge Matters • Higher Guidance: Management lifted full-year FY 2026 revenue to $41.0-$41.3 billion (8-9 % growth) and reiterated a 34 % non-GAAP operating margin target, signaling that cost discipline is sticking even as growth re-accelerates. • AI Monetization: Data Cloud and AI annual recurring revenue has crossed $1 billion and is growing triple digits. Nearly 60 % of the quarter’s top 100 deals included Data Cloud or AI add-ons, underlining Salesforce’s ability to upsell its installed base. • Agentforce Traction: The new “digital labor” platform has already processed 750,000 internal support requests and driven a 7 % reduction in cases, showcasing real-world productivity gains that customers are now starting to pay for. • Deal Momentum: Q1 saw more than 8,000 Agentforce-related deals and over half of large contracts bundling six or more clouds, a strong indicator that the Customer 360 cross-sell strategy is working. Informatica Acquisition Adds Data Firepower Just 24 hours before earnings, Salesforce announced an $8 billion agreement to acquire Informatica (NYSE: INFA), its biggest purchase since Slack. The merger combines the market-leading AI CRM with a top-tier master-data and ETL platform, creating a one-stop shop for enterprise-grade data pipelines and generative-AI agents. Management said the transaction should close in early FY 2027 and will not affect FY 2026 guidance. How the Share Price Reacted CRM stock initially jumped more than 4 % in after-hours trading on the numbers before paring gains as investors digested the Informatica deal and a choppy broader market. Even after the pop, shares remain roughly 18 % below their 2025 peak, leaving room for upside if the company executes on its AI-driven growth thesis. Key Metrics Investors Should Watch • Current Remaining Performance Obligation (cRPO): $29.6 billion, up 12 % Y/Y—an early read on future revenue. • Subscription & Support Revenue: $9.3 billion, up 8 % Y/Y—core growth engine remains healthy. • Shareholder Returns: $3.1 billion returned via buybacks and dividends, underscoring Salesforce’s transition to a balanced capital-allocation strategy. • AI & Data Cloud Penetration: Management highlighted that over half of the top deals now include six or more clouds, and Data Cloud ingestion surged 175 % Y/Y—clear evidence of platform stickiness. Analyst Takeaways & Price Outlook Early sell-side commentary framed the quarter as “clean” and the Informatica multiple as “reasonable,” with some firms reiterating buy ratings and price targets above $300. The bull case hinges on Salesforce maintaining double-digit cRPO growth while unlocking AI cross-sell, which could lift margins and valuation multiples simultaneously. Bears remain focused on macro spending risk and integration execution for the Informatica deal. Bottom Line With a guidance raise, accelerating AI adoption, and a strategic data acquisition, Salesforce gave investors multiple catalysts to revisit CRM stock. If the company sustains its newfound operating discipline while expanding its AI footprint, the shares may regain their 2023 highs sooner than skeptics expect.