Motley Fool writer Chris Neiger favors Salesforce over Oracle as an enterprise AI stock, citing Salesforce’s partnerships and lower AI spending. Oracle’s cloud-infrastructure sales rose 121% to $7.4 billion in fiscal Q1 2027, but its costly AI expansion faces project hurdles.
Salesforce’s fiscal Q2 2027 revenue rose 11% year over year to $11.3 billion; non-GAAP earnings more than doubled to $5.90, and both results beat analyst estimates. The company partnered with Alphabet to integrate Gemini into its software and with Anthropic to provide Claude plug-in capabilities; it has also shifted from paid seats to usage-based pricing. KeyBanc downgraded the stock, saying some enterprise CIOs it consulted were unimpressed with Agentforce. Salesforce shares nevertheless rose 55% over the past three months.
Oracle’s total sales in fiscal Q1 2027 rose 30% to $19.3 billion, while non-GAAP earnings per share climbed 30% to $1.92; both beat analysts’ estimates. Capital expenditures jumped 235% to $28.5 billion. Permitting and power-supply problems slowed progress on the company’s $165 billion Project Jupiter data center in New Mexico, and Oracle paused rent payments. The project is supposed to be finished by late 2028, though investors fear the schedule could slip.
