CRM

Strong earnings reports often create some of the best momentum setups in the market, especially when a stock gaps sharply higher, holds those gains and then begins consolidating near its highs. That combination can signal that investors are not simply reacting to a one-day surprise, but actively repricing the business as earnings expectations improve. When that initial move is followed by a tight continuation pattern, it can create an attractive setup for another leg higher. Okta (OKTA), Gartner (IT) and Salesforce (CRM) each fit that profile today. All three delivered strong earnings results, gapped higher on the news and are now forming constructive technical patterns that could set the stage for fresh breakouts. Image Source: Zacks Investment Research Okta was one of the biggest post-earnings winners last week, with shares surging nearly 29% after the identity-security company delivered a better-than-expected quarter. Second-quarter revenue increased 11% year over year to $805 million, while subscription revenue climbed 12%. More importantly, current remaining performance obligations, a useful indicator of near-term subscription demand, accelerated 14% to $2.59 billion. Free cash flow also jumped to $227 million from $162 million a year earlier. There is also a compelling AI angle developing around the business. As companies deploy autonomous AI agents across their operations, those agents increasingly require identities, permissions and controls just like human employees. Okta is positioning its identity platform as a critical security layer for this emerging infrastructure. That narrative appears to be gaining traction alongside improving fundamentals. Okta currently carries a Zacks Rank #2 (Buy), and the strong quarter could provide additional support to earnings estimates. Technically, the earnings gap was unusually powerful. Rather than immediately giving back the move, OKTA shares have held near their highs and are now pressing against resistance around $173.50. A decisive move through that level would represent a fresh breakout and could open the door to another leg higher. On the downside, the $164 area is an important near-term support level. As long as shares remain above that zone, the post-earnings setup remains constructive. Image Source: TradingView Gartner offers a somewhat different setup, combining improving earnings momentum with an unusually inexpensive valuation. The research and advisory company reported adjusted second-quarter earnings of $4.37 per share, up nearly 24% year over year and comfortably above expectations. Free cash flow increased 9% to $378 million, while management raised its full-year outlook for adjusted EBITDA, earnings and free cash flow. Gartner also repurchased $547 million of stock during the quarter. The stock now carries a Zacks Rank #1 (Strong Buy), while valuation remains compelling. IT shares trade at just 13.8x forward earnings, despite long-term EPS expectations of roughly 20.1% annual growth, giving the stock a PEG ratio of only 0.68. The technical setup is also increasingly constructive. Gartner shares are consolidating beneath resistance around $203, creating a well-defined breakout level. A sustained move above $203 could signal the beginning of another leg higher. Meanwhile, the $190 area has emerged as an important support zone. That gives investors a relatively clear framework: strength above $203 confirms the breakout, while a loss of $190 would weaken the setup. Image Source: TradingView Salesforce may be the most interesting name of the three because its earnings report directly challenged one of the market's most persistent narratives this year. Software stocks were hit hard as investors worried that generative and agentic AI could disrupt traditional SaaS businesses. Salesforce was caught directly in that selloff. But its latest earnings report suggested AI may ultimately prove to be considerably more opportunity than threat. Second-quarter revenue increased 11% year over year to $11.3 billion, while non-GAAP diluted EPS more than doubled to $5.90. Free cash flow surged 81% to $1.1 billion, and Salesforce raised its full-year revenue outlook. Current remaining performance obligations also accelerated to 14% growth. Perhaps most important, the company's AI businesses are gaining substantial traction. Agentforce and Data 360 annual recurring revenue reached nearly $3.9 billion, up more than 210% year over year, while Agentforce ARR exceeded $1.5 billion and grew more than 240%. Investors responded by sending CRM shares more than 22% higher in the following session. Even after that move, Salesforce trades at only around 17.5x forward earnings, while long-term EPS is forecast to grow roughly 18% annually. The stock currently carries a Zacks Rank #3 (Hold), although the report is still fresh and upward estimate revisions following the quarter could potentially improve that rank. Technically, CRM has not even produced the clean consolidation seen in OKTA and IT yet. Momentum has been so strong that shares continue to push higher following the gap. That makes Salesforce one to watch closely. Ideally, shares would form a tight bull flag or another short consolidation that establishes a cleaner breakout level. More aggressive momentum investors may choose to participate in the runaway move, but waiting for a defined setup would provide a clearer risk-reward profile. Image Source: TradingView What makes these three setups particularly interesting is that they share a broader narrative. Okta, Gartner and Salesforce were all pressured to varying degrees by concerns that AI could disrupt established software and information-services businesses. Investors spent much of the year asking which companies AI might replace. Recent earnings are beginning to suggest that the market may have pushed that thesis too far. Salesforce is already generating rapidly growing AI revenue, Okta may become an increasingly important security layer for autonomous agents, and Gartner continues to produce strong earnings and cash flow despite fears surrounding AI disruption. If investors continue to reconsider the idea that AI is inherently bearish for established software and information businesses, the rerating of these stocks may have considerably further to go. With earnings momentum improving and technicals turning bullish, all three stocks deserve a place near the top of investors' watchlists. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce, Inc. (CRM) : Free Stock Analysis Report Gartner, Inc. (IT) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Salesforce CRM) stock came roaring back after the software giant posted a strong Q2 report after-market hours on Wednesday evening. CRM shares spiked more than 20% on Thursday, marking their largest single-day jump since 2020, and are up another 3% in Friday’s trading session. The rally reflects renewed confidence that Salesforce can turn artificial intelligence into a growth catalyst rather than be disrupted by AI. Image Source: Zacks Investment Research Salesforce posted Q2 revenue of $11.34 billion, rising nearly 11% year over year and edging past the Zacks Consensus of $11.31 billion. More eye-catching was Salesforce’s Q2 adjusted net income of $3.53 billion. This translated into adjusted EPS of $5.90, which soared 103% from $2.91 per share a year ago and crushed expectations of $3.27 by more than 80%. However, it’s noteworthy that the enormous EPS beat was heavily boosted by gains on Salesforce’s strategic investments, including in artificial intelligence firm Anthropic. Excluding that benefit, underlying adjusted EPS was reportedly around $3.37, which still topped expectations but paints a more realistic picture of operating profitability. Meanwhile, operating cash flow surged 71% to $1.3 billion and free cash flow jumped 81% to $1.1 billion. Current remaining performance obligations (cRPO), an important indicator of future sales, climbed 14% to $33.5 billion. Image Source: Zacks Investment Research More importantly, management raised its current fiscal 2027 revenue guidance to $46.1-$46.4 billion (+11% growth), up from $45.9-$46.2 billion previously, and now forecasts adjusted EPS of $16.67-$16.71 (+33% growth), up from its prior $14.06-$14.12 outlook. Q3 revenue is expected at $11.42-$11.5 billion, representing an 11%-12% increase.Of course, part of the dramatic full-year EPS increase reflects the strategic investment gains already realized. This makes the higher revenue outlook and sustained 14% cRPO growth arguably more important indicators of Salesforce’s underlying momentum, with the current Zacks Consensus sales forecast pictured below. Image Source: Zacks Investment Research Salesforce’s AI story is rapidly becoming measurable through its AI platform Agentforce and its supporting data foundation, Data 360. Agentforce and Data 360 annual recurring revenue (ARR) reached nearly $3.9 billion, soaring more than 210% YoY, with Agentforce ARR surpassing $1.5 billion and increasing more than 240%. Salesforce also delivered 3.2 billion Agentic Work Units (AWUs) during Q2, nearly doubling sequentially, with each AWU representing a discrete task completed by an AI agent and the conversion of intelligence into an actionable result. Adding fuel to that momentum is Salesforce’s expanded partnership with Anthropic and the launch of Claudeforce. The offering combines Claude’s reasoning capabilities, which are Anthropic’s flagship series of large language models (LLMs), with Salesforce’s customer data, workflows and business logic, initially providing 37 prebuilt sales skills that can analyze pipelines, prepare for meetings and take governed actions directly from Claude. Salesforce in Claude is already being piloted and is expected to enter open beta in September. Perhaps more encouraging is the caliber of companies adopting Salesforce’s AI offerings. Management highlighted Cisco Systems CSCO) as expanding its AI investment with Salesforce, while Dell Technologies DELL) is using Agentforce for operations and supply-chain workflows. Furthermore, Uber UBER) is deploying Agentforce to improve lead conversion, while Robinhood HOOD) is incorporating Salesforce’s built-in AI agent, Slackbot, across its workforce. Salesforce also counts household names such as PepsiCo, Coca-Cola, Home Depot, Costco, Ford, and Disney among its broader customer base. The valuation conversation has certainly changed after Salesforce’s explosive two-day move, but CRM shares still don't appear excessively expensive compared with the broader market or its software peers. Despite the sharp rally, Salesforce’s 24X forward earnings multiple is just a slight premium to its Zacks Internet-Software Industry average of 21X and the benchmark S&P 500’s 22X. Image Source: Zacks Investment Research Salesforce’s Q2 report significantly strengthened the bullish case for CRM stock. Accelerating AI adoption, stronger cRPO growth, impressive cash generation, and raised revenue guidance suggest the company is beginning to prove that generative and agentic AI can increase the value of its software ecosystem rather than replace it. Still, after a more than 25% surge in less than two trading sessions, investors may not want to aggressively chase the rally. Much of the headline earnings beat came from investment gains, and sustained organic revenue acceleration will be key to supporting another leg higher. For now, CRM shares land a Zacks Rank #3 (Hold), making the stock compelling to keep on the radar while investors digest its dramatic post-earnings revaluation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce, Inc. (CRM) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Salesforce (NYSE:CRM), a cloud CRM and AI-powered enterprise software provider, closed at $252.10, up 22.60% Thursday. The move followed a strong Q2 earnings beat, raised full-year guidance, and fresh AI partnership momentum. Investors are watching Salesforce's next earnings report and AI-related revenue traction. Trading volume reached 53.3M shares, coming in about 246% above its three-month average of 15.4M shares. Salesforce IPO'd in 2004 and has grown 5,763% since going public. The S&P 500 (SNPINDEX:^GSPC) closed at 7,730, up 0.71%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,541, up 1.57%. Among enterprise software and customer relationship management (CRM) applications peers, ServiceNow (NYSE:NOW) closed at $138.44, up 10.05%, and Workday (NASDAQ:WDAY) closed at $193.57, up 1.48%, reflecting broad enthusiasm for large-cap software after Salesforce's results. Salesforce reported Q2 earnings and soared past Wall Street's expectations as sales and current remaining performance obligations grew 11% and 14%. The company also raised full-year guidance, stating that sales will grow between 11% and 12% this year. However, the news that stole all the headlines was Salesforce's announcement that it was partnering with Anthropic to develop Claudeforce. CEO Marc Benioff explained, "By fusing Claude's extraordinary reasoning with the trusted data, workflows, and governance every enterprise runs on, we're delivering a dynamic interface that thinks, reasons, and acts. This is how every business will run." This certainly quiets some of the fears surrounding a potential SaaS-pocalypse (at least in respect to Salesforce) and could make the CRM leader a true, AI-first behemoth. Even before this partnership, Salesforce grew its agentic workforce units by 97% in Q2 as AI agents continue to tackle a broader array of tasks for its customers. Trading at 16 times free cash flow, Salesforce isn't outrageously priced considering today's interesting developments and steady growth rates, but investors will want to watch this new partnership closely for progress in the upcoming quarters. Before you buy stock in Salesforce, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Salesforce wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 27, 2026. Josh Kohn-Lindquist has positions in ServiceNow. The Motley Fool has positions in and recommends Salesforce, ServiceNow, and Workday. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 27: Salesforce Surges 23% on Anthropic Partnership and Q2 Earnings Beat was originally published by The Motley Fool

UiPath (PATH) surged 8% and Pegasystems (PEGA) gained 5% Thursday despite neither company reporting earnings, driven entirely by sector momentum. Salesforce (CRM) beat revenue, raised full-year guidance, and launched ClaudeForce with Anthropic, jumping 10% and lifting the software ETF IGV 3%. C3.ai reports September 2 and UiPath reports September 3, giving investors the first hard earnings test of whether this sector re-rating survives. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. Software's post-earnings bid is broadening past the names that actually reported. UiPath (NYSE:PATH) stock is up 9% to $18.20 in Thursday morning trading, and Pegasystems (NASDAQ:PEGA) stock is up 4% to $35.29. Neither company reported this week, which makes the size of both moves the interesting part. There's no verified company-specific catalyst behind UiPath stock today. UiPath did issue a Thursday morning press release announcing that CEO Daniel Dines has published a book on orchestrating AI agents, automation, and people inside the enterprise, but a book announcement carries too little weight to explain a move of this size. The mechanism that does hold up is sector momentum from Wednesday's software earnings, plus an oversold-name bounce in the beaten-down agentic-AI cohort. The broader software complex is riding the same wave. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is up 3% to $105.19, while the Invesco QQQ Trust (NASDAQ:QQQ) is up 1% to $718.40, a much tamer move that pins this rally to software rather than large-cap tech in general. Salesforce (NYSE:CRM) reported fiscal Q2 2027 after Wednesday's close, beat on revenue, raised its full-year guide, and announced an expanded partnership with Anthropic tied to a new product the two are calling ClaudeForce. Salesforce stock is up 10% to $226.80 on the results, and that report is the origin of Thursday's software bid. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. The read-through matters for automation and agentic-AI vendors because Salesforce management framed enterprise AI as an orchestration problem sitting on top of trusted data, workflows, business rules, and governance. That's essentially the pitch UiPath and Pegasystems have been making to their own customers, which is why the bid is spilling into non-reporters that fit the same theme. When the largest enterprise software vendor validates that framing on an earnings call and raises guidance behind it, the market tends to reward every name that maps to the same idea. The common thread across today's software winners is that they are beaten-down agentic-AI names catching a lift on someone else's results. Also, C3.ai (NYSE:AI) stock is up 5% to $10.23, another oversold enterprise-AI name that did not report and had no fresh company-specific news of its own on the wires this morning. Underlying setups vary materially by name. UiPath stock was up 44% over the past month through Wednesday's close, so Thursday's session is compounding an existing recovery in a name that had already gone from left-for-dead to one of the sharper software rebounds of the summer. Pegasystems stock was down 43% year to date through Wednesday's close, so today's bid there looks more like an oversold reaction to a friendlier sector narrative than a fundamental re-rating driven by anything the company itself said or did. A one-year picture reinforces the divergence. UiPath stock was up 55% over the trailing year through Wednesday's close, while Pegasystems stock was down 35% over the same window. Both are up meaningfully Thursday for reasons that live outside their own fundamentals, which is what makes today a sector re-rating rather than a stock-picker's session. Positioning ahead of UiPath's September earnings report is a plausible contributing factor rather than a confirmed cause. Dines has been telegraphing UiPath's positioning in agentic AI for months, writing in his new book that the real project "is producing a governed description of how the business actually works — the map — and the machinery that executes stable parts exactly — the rails." That framing dovetails cleanly with what Salesforce told the market on Wednesday. Investors can watch for whether today's gains hold into Thursday's close and whether sell-side desks publish read-through notes lifting price targets on UiPath and Pegasystems on the back of the Salesforce results. A follow-through session in the IGV ETF would confirm this is a genuine sector re-rating rather than a one-day chase. UiPath is scheduled to report fiscal Q2 2027 results after the close on September 3, which is where the first fundamental confirmation of today's move will arrive. Pegasystems reports in late October, giving that name a longer runway before its own catalyst arrives. C3.ai reports on September 2, and its response will be the cleanest early test of whether this rally survives a real earnings check. A cautious position size may be warranted given that Thursday's move rests on someone else's numbers. Rallies built on read-through can unwind on read-through when the next earnings check arrives, and investors sizing their exposure into next week's PATH and AI reports should weigh the strong monthly momentum already in the chart against the absence of a company-specific catalyst today. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.