Salesforce Rises 8% in Three Months: Should You Buy CRM Stock Now?

Salesforce (CRM) shares have risen 8.5% over the past month, significantly outperforming the broader software industry and key competitors, driven by robust fiscal Q2 2026 results that reported 10% revenue growth to $10.2 billion and 13.7% non-GAAP EPS growth. The company's continued dominance in CRM, strategic expansion into AI, and a forward P/E of 20.81x—a discount to both the industry average and peers—position it favorably amidst ongoing digital transformation and increasing generative AI spending.

Analysis

Salesforce (CRM) has demonstrated significant relative strength, with its shares rising 8.5% over the past month, starkly outperforming the Zacks Computer – Software industry's 4.4% decline and negative returns from key peers Microsoft, Oracle, and SAP. This market outperformance is underpinned by robust fiscal Q2 2026 results, which showed a 10% year-over-year revenue increase to $10.2 billion and a 13.7% growth in non-GAAP earnings per share to $2.91. Strategically, the company is leveraging its dominant CRM position to expand into high-growth areas through acquisitions and a central focus on AI with its Einstein GPT platform. This positions Salesforce to capture a significant share of the generative AI market, which Gartner projects will see enterprise software spending grow 93.9% in 2025. Despite the recent stock appreciation and strong growth outlook, the company's valuation remains compelling; its forward 12-month P/E ratio of 20.81x represents a substantial discount to both the industry average of 31.94x and peers trading above 31x.

Key Decisions for Investors

• Given the stock's significant valuation discount relative to peers and the broader industry, paired with consistent double-digit earnings growth, investors could view current levels as an attractive opportunity to build or add to a long position.
• Investors should closely monitor the adoption rates and monetization of Salesforce's generative AI products, as success in this area is a primary catalyst for potential earnings outperformance and a re-rating of its P/E multiple.
• While the outlook is positive, it is prudent to track enterprise IT spending trends and macroeconomic indicators, as a material slowdown could present a headwind to the company's sustained growth despite its current resilience.