Salesforce Inc. (NYSE:CRM) reported robust Q2 results recently, driven by strong demand for AI tools such as Agentforce. The company reported revenues of $11.35 billion, beating the expected figure of $11.32 billion. Earnings per share were $5.90 adjusted compared to expectations of $3.27.

Wall Street firm Argus responded by raising the price target on Salesforce Inc. (NYSE:CRM) to $300.00 (from $290.00) and maintaining a Buy rating. According to the firm, Salesforce has raised its guidance for the second time, and management now expects revenue growth to accelerate in the second half of 2027. This, however, is a promise that Salesforce has to keep, not one that it has already delivered on.

The Bull Case for Salesforce

The bull case for Salesforce post earnings is pretty straightforward: robust cRPO growth, accelerating AI adoption, impressive cash generation and raised revenue guidance.

In particular, current remaining performance obligations (cRPO) growth of 14% serves as a critical growth metric for the company, supporting the case for revenue acceleration in the second half of 2027. This, coupled with a revenue guidance raised for the second time, gives investors and analysts' visibility that wasn't available a few quarters ago.

Salesforce's newly formed Anthropic partnership also adds to the bull case. The company saw a $2.6 billion gain on strategic investments due to its increasingly valuable stake in the AI startup.

In terms of AI, Agentforce and Data 360 ARR reached almost $3.9 billion, which is proof that its AI suite is being adopted. Agentforce ARR alone reached $1.5 billion while the company also delivered more than 3.2 billion Agentic Work Units during Q2. The company also noted that bookings from the premium Agentforce 1 Edition and Agentforce for Apps bundles more than doubled from the prior quarter.

The Bear Case

Salesforce stock rallied more than 20% after its results, marking one of the best trading days for it. However, the stock rally signifies how much of the optimism is already priced in. The firm's own language points out that the revenue acceleration it anticipates remains an expectation, not a delivered result.

Salesforce management indicated that it has raised full-year fiscal 2027 revenue guidance to $46.1 billion to $46.4 billion. This is up from the previous $45.9 billion-$46.2 billion. The raised guidance itself includes an adjustment that reflects $100 million of organic growth and $200 million from pending Contentful and Fin acquisitions. This is partly offset by a $100 million FX headwind. In simpler words, acquisition still accounts for a meaningful portion of the raised guidance, while organic momentum is only around $100 million.