How will the record Q2 fiscal 2026 results affect Salesforce's forward guidance and earnings expectations?

Salesforce’s record Q2 FY‑2026 results – beating both revenue and EPS consensus and delivering a sentiment score of 80 – are likely to trigger an upgrade in forward guidance. Management will probably raise FY‑2026 revenue and operating‑margin outlook, citing the strong subscription‑revenue tailwind, the rapid adoption of AI‑enhanced clouds, and higher‑margin professional‑services bookings. Analysts will revise earnings forecasts upward, tightening price‑target ranges and adding a bullish bias to the stock. In the near‑term, the upgrade should support a continuation of the recent price rally, potentially pushing the share price toward its 52‑week high and testing the next resistance level around $260–$270.

From a technical standpoint, the stock has broken above its 20‑day and 50‑day moving averages on higher volume, forming a bullish flag on the daily chart. Momentum indicators (RSI ≈ 68) suggest still‑room‑for‑run, but traders should watch for a pull‑back to the 38.2% Fibonacci retracement (~$240) as a lower‑risk entry. Given the upgraded guidance and elevated earnings expectations, a short‑term “buy‑the‑dip” strategy with a stop‑loss just below $235 is reasonable, while longer‑term investors may consider adding to positions with a target of $280–$300, contingent on the company delivering the raised guidance in its FY‑2026 outlook. Keep an eye on macro‑tech spending trends and competitive pressure from Microsoft and Adobe, which could moderate upside if cloud‑spending slows.