Salesforce v posledním čtvrtletí překonal odhady: EPS činil 3,88 USD a tržby 11,13 miliardy USD. ARR z Agentforce a Data 360 vzrostly meziročně o více než 200 % na téměř 3,4 miliardy USD.
I keep buying Salesforce (NYSE:CRM | CRM Price Prediction) because the crowd screaming “SaaSpocalypse” is looking at a stock chart while I am looking at a receipts book. The stock is down 34.05% year to date while the S&P 500 is up 8.82%, and every time the gap widens, I add more shares. My cost basis keeps working in my favor, and the business underneath keeps compounding.
The Receipts Behind My Conviction Start with what actually happened last quarter. Salesforce delivered EPS of $3.88 against a consensus of $3.1271, a 24.08% beat and the fifth consecutive quarter of exceeding estimates. Revenue landed at $11.13 billion, up 13.27% year over year. Net income jumped 36.73%. These are the numbers of a compounder that the market has decided to price like a melting ice cube.
Then there is the AI receipt in plain view. Agentforce and Data 360 combined ARR reached nearly $3.4 billion, up over 200% year over year. Agentforce alone crossed $1.2 billion in ARR, growing 205%. Customers delivered 3.8 billion Agentic Work Units, and more than 50% of new Agentforce bookings came from existing customers. That is real recurring revenue from enterprises paying to have agents do work inside their systems of record. Industry surveys show over 60% of CIOs prefer upgrading incumbent SaaS vendors rather than replacing them with raw models, citing SOC2 compliance and audit trails that startups cannot match. That is the moat.
The capital return finishes the case. Salesforce executed a $25 billion accelerated share repurchase, taking diluted share count from 970 million to 871 million in a year. Total returned in the quarter: $27.5 billion. With a P/E of 19, a free cash flow yield of 10.12%, and a 1.11% dividend that was raised 5.8% this year, I am buying growth at a value multiple.
Why Not the Obvious Alternatives Readers ask about ServiceNow (NYSE:NOW) and HubSpot (NYSE:HUBS). ServiceNow is down 51% from its 52-week high, and CLSA just initiated with an underperform rating and a $72 price target implying 31% downside. HubSpot got cut by Wells Fargo from Overweight to Equal Weight with the target sliced from $300 to $225 on AI transition uncertainty. Salesforce already carries the average Wall Street target of $254.42 against a stock trading at $173.79. Same fear, better fundamentals, cheaper entry.
The Risk I Own Noncurrent debt jumped from $10.4 billion to $39.3 billion to fund the buyback, and Informatica integration is a real execution project. Interest coverage of 27.5x and net debt to EBITDA of 0.78 tell me the balance sheet absorbs it. I am fine with management leaning into a cheap stock.
Marc Benioff called this “an outstanding quarter for Salesforce, record revenue, record deals, and cash flow” and set a $63 billion FY30 revenue target. I will keep buying while the market sells me a compounder at a value multiple.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Salesforce didn't make the cut. Grab the names FREE today.
Akcie Salesforce dnes klesly po snížení ratingu Morgan Stanley z „Overweight“ na „Equal Weight“ a cílové ceny z 287 USD na 185 USD. Analytik varuje, že přechod na AI může déle brzdit růst.
Shares of software giant Salesforce (CRM 1.97%) were falling on Tuesday, down as much as 3.9% in early trading, before recovering slightly to a 2.7% decline as of 1:30 p.m. EDT.
The move was somewhat notable, given that the broader Nasdaq Composite was up by about 1.4% at the same time.
Salesforce was on the receiving end of a Wall Street analyst's downgrade today, along with a big price target cut. That led to a sell-off; however, given the stock's bargain-basement valuation, is the analyst's negativity already baked into the share price?
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Morgan Stanley sours on Salesforce's AI transition Salesforce is facing the same headwinds and uncertainties that all software stocks have experienced since the emergence of powerful AI coding agents from Anthropic and other AI labs at the beginning of this year.
Salesforce, of course, isn't standing still. The company has developed its own agentic AI features and capabilities, which it calls Agentforce. In June, Salesforce made a very interesting acquisition with an eye toward the agentic future: customer service agent software company Fin. Fin has already transformed its business model in the manner Salesforce needs to, including an outcome-based pricing model on its fully autonomous customer service agent, run on a custom AI model independent of the major AI labs.
Still, Adam Wood of Morgan Stanley doesn't think it's enough. The analyst lowered his rating on the shares from "Overweight" to "Equal Weight" and his price target from $287 to $185 today.
Wood is actually bullish on the leading indicators for Agentforce and Salesforce's new agentic AI offerings; however, Wood also acknowledges that this is coming at the expense of some of Salesforce's larger, legacy software subscription services. Moreover, Agentforce's revenue is still small, coming in at just a $3.4 billion annualized run rate last quarter; meanwhile, Salesforce projects about $46 billion in revenue this fiscal year. So Agentforce still accounts for only about 7% of revenue; even if that keeps growing fast, a drag on the larger non-agentic business could cap overall growth.
While he believes Salesforce is making the right moves and could emerge as an AI winner, Wood now thinks the inflection to overall company-level organic growth may take longer than expected. Given the uncertainty, he is bringing down the stock price to reflect a compressed valuation multiple that the market now attributes to much of the software sector.
Image source: Getty Images.
Long-term opportunity in the software sector? It should be noted that Salesforce currently trades at roughly $168 per share, which is still below Wood's new price target and represents a valuation of just 12 times this year's earnings estimates.
That valuation implies little to no growth going forward, which may be warranted given the uncertainties around agentic AI. However, Salesforce is returning lots of cash to shareholders through a large share repurchase program. If the company successfully navigates the agentic AI transition and eventually returns to growth, today's valuation could be a bargain. Still, investors should be prepared to wait a while to find out.
Salesforce klesl od prosincového vrcholu v roce 2024 o více než 50 % kvůli obavám ze zpomalení růstu a „SaaSpocalypse“. Tržní kapitalizace spadla z více než 347 miliard USD na zhruba 136 miliard USD.
Salesforce stock has plunged by more than 50% from its December 2024 peak as concerns about its growth outlook have intensified. Its market capitalization has fallen from more than $347 billion to about $136 billion, and the selloff could continue as investors remain concerned about the company's strategy and long-term growth prospects.
CRM stock has been in a steep decline over the past few years as concerns about its growth have escalated. Recently, the stock has dropped because of the rising SaaSpocalypse fears.
SaaSpocalypse is a relatively new term referring to fears that AI agents will replace traditional software and the “per seat” pricing model. A good example of this is what Starbucks is doing.
According to Bloomberg, the company is now building its own AI-assisted replacement for a Microsoft system that tracks inventory and an IBM solution that manages maintenance. It aims to save the $400 million it spends annually on software.
The fears in the software industry escalated this week after IBM published its financial results. IBM said that its business slowed as customers reprioritized their capital expenditure, redirecting it towards hardware purchases like servers and memory.
Salesforce’s organic growth has been slowing for a while. The most recent results showed that its revenue rose by 13% in the first quarter. While this growth is solid for a company that has been in business for years, it was not organic. Its $11.1 billion revenue included $444 million from Informatica, a company it acquired in a $8 billion deal.
The company has been one of the most acquisitive ones in the US. It has spent billions of dollars acquiring firms like Own Company, Fin, Bluebirds, Tableau, and Slack.
Analysts expect that Salesforce’s business will remain under pressure in the coming months. The average estimate is that its revenue jumped by 10% in the last quarter to $11.32 billion. Its annual revenue is expected to be $46.1 billion, followed by $50.4 billion next year.
At face value, there are signs that Salesforce stock has become a bargain. For one, its Non-GAAP forward price-to-earnings ratio has dropped to 11.8, well below the sector median of 24. Its five-year average stands at 24.
Similarly, the forward PEG ratio stands at 0.73, also lower than other companies in the tech industry. The challenge, however, is that these valuation metrics include the extra funds made from its Informatica buyout.
As a result, the company will need more growth catalysts over time. One of this catalysts will be its Agentforce and data segments, whose annual recurring revenue soared to $3.4 billion, a 200% jump. It has deployed over 3.8 billion Agentic Work Units (AWU) across Agentforce and Slack.
READ MORE: Salesforce stock falls after KeyBanc downgrade on AI growth concerns
Salesforce stock chart | Source: TradingView
The weekly chart shows that the CRM share price has slumped in the past few years, moving from a record high of $367 to a low of $146. It remains below the 50-week Exponential Moving Average (EMA).
The stock has also remained below the Supertrend indicator and the 78.6% Fibonacci Retracement level.
Therefore, the stock will likely remain under pressure in the near term. In this, it may drop and retest the year-to-date low of $146.
In the long-term, however, the stock will likely bounce back as investors buy the dip in software stocks.
Salesforce v první polovině roku 2026 klesl o 40,9 %, protože investoři se obávali dopadu agentické AI na tradiční podnikový software. Firma přesto dál rostla v tržbách i zisku a zvýšila spodní hranici výhledu pro fiskální rok 2027.
Shares of enterprise software giant Salesforce (CRM +1.65%) fell 40.9% in the first half of 2026, according to data from S&P Global Market Intelligence.
Salesforce, like many other software-as-a-service stocks, experienced a violent sell-off to start 2026, despite reporting relatively solid financial results. This was due to the first quarter's "SaaS-pocalypse," in which the rapid adoption of Anthropic's Claude Code tools and open-source agents such as OpenClaw ushered in the era of agentic AI.
Agentic AI's improving capabilities spurred investors to sell software stocks, as fears emerged that these new AI leaders could disrupt traditional enterprise software.
However, Salesforce countered the threat with a slew of acquisitions and a massive buyback program.
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How Salesforce is countering the agentic threat At first glance, it's a bit of a head-scratcher as to why Salesforce fell as much as it did. Salesforce beat revenue and earnings expectations on each of its earnings reports during the first half. Moreover, the company raised the lower end of fiscal 2027 guidance, remaining performance obligations continued to rise, and management even provided a long-term fiscal 2030 revenue guidance of $63 billion. That's about 37% above this year's revenue outlook of $46 billion, and would amount to roughly an 11% annualized growth rate over three years.
Investors appeared to doubt that long-term projection, however, as artificial intelligence labs released ever-more powerful models. In February, Anthropic released industry-specific plugins for its latest Claude model. These advanced tools indicated Anthropic was muscling into the territory of traditional software. The result was widespread selling across the software sector, from which Salesforce wasn't spared.
But there are several ways Salesforce is pivoting to the new agentic AI reality. First, Salesforce introduced its own AI agents back in late 2024, a suite of automation tools called Agentforce. Agentforce has grown rapidly, already reaching a $3.4 billion annualized run rate. However, that total still only accounts for about 7.5% of this year's revenue guidance. So while Agentforce's growth is positive, it's still relatively small, and wouldn't necessarily offset deterioration in the rest of the business.
To augment its AI capabilities, Salesforce also made several "tuck-in" acquisitions during the first half of the year. In February, Salesforce announced the acquisition of Momentum Boost, a platform that enables the ingestion and analysis of unstructured data, including Zoom Communications video calls. In June, Salesforce announced the acquisition of M3ter, a metering and billing company that facilitates consumption-based pricing. If agents begin replacing more humans in corporate environments, one way software companies can continue to grow will be through consumption-based pricing, rather than "seat" based subscription pricing. So the M3ter buy could be consequential to that transition.
But the most consequential acquisition of the first half was Salesforce's $3.6 billion acquisition of Fin, a software company formerly known as Intercom. Fin is a customer service AI chatbot, and the company has already successfully pivoted from a traditional software subscription business to an agentic AI business that charges customers only for successful, fully automated outcomes. Moreover, Fin has built its own custom model, Apex, specifically for the customer service vertical, freeing Fin from having to pay Anthropic or OpenAI for its underlying intelligence.
Image source: Getty Images.
Despite the decline, management remains confident Will all these efforts enable Salesforce to adapt and thrive in an AI future? Only time will tell. However, Salesforce appears confident. During the first half, CEO Marc Benioff repeatedly said, in interviews and on earnings calls, that AI presents a massive growth opportunity for Salesforce rather than a disruption risk.
Not only did Benioff sound confident, but he and Salesforce's management team backed that sentiment up with a massive $25 billion accelerated share repurchase in March, part of a $50 billion total repurchase authorization. That repurchase quickly reduced Salesforce's shares outstanding by 10% over just a few days, though it also increased the company's debt load.
Despite a slight recent bounce in the stock, Salesforce shares still trade at less than 12 times this year's adjusted earnings per share estimates. That's a bargain if Salesforce can continue to survive and grow in the AI era; however, the answer to that overhanging question won't be answered for quarters, if not years.
Salesforce Inc. CRM shares fell 2.5% on Thursday after KeyBanc downgraded the software company, citing concerns that its Agentforce artificial intelligence platform may take longer than expected to become a meaningful growth driver.
The downgrade came despite Salesforce's strong position in enterprise software and follows the company's better-than-expected fiscal first-quarter results reported in late May.
Investors have remained focused on whether the company's AI investments can translate into sustained revenue growth as competition in enterprise artificial intelligence intensifies.
KeyBanc downgraded Salesforce to Sector Weight from Overweight on Thursday, with analyst Jackson Ader pointing to customer feedback and channel checks that suggest Agentforce adoption remains in its early stages.
According to the brokerage, Salesforce continues to benefit from its position as an incumbent platform provider, but evidence indicates that meaningful growth acceleration from Agentforce is further away than previously expected.
The firm said it attends more Salesforce partner and customer events than any other company in its coverage universe.
Customer feedback has been consistent in two areas, according to KeyBanc.
Customers' data is not yet organized to support meaningful AI work, while Agentforce itself is still not ready for broad deployment.
The brokerage added that implementation partners are only now beginning to convert Agentforce proof-of-concept projects into pipeline deals.
KeyBanc also said its survey found that more chief information officers expect to deprioritize Salesforce within their IT budgets over the next 12 months than prioritize it.
The brokerage further noted that it has struggled to find evidence in Salesforce's financial disclosures showing that net-new annual contract value is growing faster than overall annual contract value growth, despite management's comments.
"What we can piece together in the disclosed numbers does not signal building momentum," Ader said.
Ader also acknowledged the timing of the downgrade saying it could be at a poor time.
"But at some point, we have to ask ourselves, why gather the evidence if we’re not going to use it," he added.
AI growth remains under scrutinyThe downgrade comes after Salesforce reported stronger-than-expected fiscal first-quarter earnings in late May, supported by demand for its AI-powered products, including Agentforce.
The company said it closed 98 deals worth more than $1 million in annual contract value during the quarter.
Publicly disclosed Agentforce customers include PepsiCo, Falabella and Singapore Airlines.
However, Salesforce's second-quarter revenue guidance came in slightly below Wall Street expectations, raising concerns that rapidly advancing AI products from rivals such as OpenAI and Anthropic continue to pressure demand for enterprise software.
KeyBanc noted that it had previously pushed back against negative sentiment surrounding software-as-a-service companies, highlighting the advantages that incumbent platforms such as Salesforce possess.
However, the firm's latest customer checks prompted it to revise its view.
On Wednesday, Salesforce announced that the US Air Force 441st Vehicle Support Chain Operations Squadron (VSCOS) had begun using the company's Missionforce National Security platform to manage a fleet of more than 84,000 vehicles across nearly 389 locations.
Despite Thursday's decline, Wall Street sentiment remains broadly positive.
More than 70% of analysts covering Salesforce rate the stock a Buy, with an average price target of $241.08, implying roughly 45% upside from Wednesday's closing price of $166.58.
Still, Salesforce has struggled this year. The stock has fallen 35% in 2026.
Salesforce uvedl, že Agentforce ARR vzrostl meziročně o 205 % na 1,2 miliardy USD a AI a Data ARR se více než ztrojnásobily na 3,4 miliardy USD. Výnosy ve 1. čtvrtletí fiskálního roku 2027 stouply o 13,3 %.
Key Takeaways CRM's 5.8% drop trails industry gains as AI, interest rates, inflation and geopolitics weigh on software.Salesforce's Agentforce ARR surged 205% to $1.2B, while AI and Data ARR more than tripled to $3.4B.Salesforce expects 10-11% Q2 revenue growth and about 11% for FY27, while valuation looks cheaper. Salesforce Inc. (CRM - Free Report) shares have declined 5.8% over the past three months, underperforming the Zacks Internet – Software industry’s 5.7% gain. While the weak performance may concern investors, Salesforce is far from being the only software stock under pressure.
Several enterprise software names, including SAP SE (SAP - Free Report) , Adobe Inc. (ADBE - Free Report) and Workiva Inc. (WK - Free Report) , have also struggled during the same period. SAP, Adobe and Workiva have fallen 5.1%, 8.7% and 9.9%, respectively. The broad-based weakness suggests that investors are reassessing the software sector rather than losing confidence in Salesforce alone.
Salesforce 3-Month Price Return Performance
Image Source: Zacks Investment Research
The biggest overhang is the rapid rise of artificial intelligence, particularly agentic AI. These AI systems can automate complex business tasks with minimal human intervention, prompting investors to question whether the traditional software-as-a-service (SaaS) pricing model, which largely depends on per-user subscriptions, could face pressure over time. If enterprises eventually require fewer software users, subscription growth could slow across the industry.
At the same time, software companies continue to deal with a difficult macroeconomic backdrop. Higher interest rates, persistent inflation and geopolitical uncertainty have made businesses more cautious about technology spending. Many enterprises are taking longer to approve large software purchases, resulting in extended sales cycles across the industry.
Salesforce is naturally exposed to these trends because most of its revenues come from enterprise customers. Slower IT spending could delay new customer wins and reduce expansion opportunities. However, the recent pullback appears to reflect broader market concerns rather than any meaningful deterioration in Salesforce's business.
Salesforce Is Becoming More Than a CRM CompanySalesforce remains the global leader in customer relationship management software, according to Gartner. However, the company is no longer relying solely on its customer relationship management software for growth. It is transforming into a broader enterprise AI platform by combining customer data, collaboration tools and AI-powered automation.
This strategy has been built through both large and small acquisitions. Slack strengthened Salesforce's collaboration platform, and Informatica expanded its data management capabilities, while newer acquisitions such as Doti AI and Spindle AI are enhancing its AI offerings.
The company's biggest growth engine today is Agentforce. In the first quarter of fiscal 2027, Agentforce’s annual recurring revenues (ARR) surged 205% year over year to $1.2 billion, highlighting strong customer demand for Salesforce's AI agents.
The momentum extends beyond Agentforce. Combined AI and Data ARR, including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion in the first quarter, more than tripling from the year-ago period. Nearly half of Agentforce and Data 360 bookings came from existing customers, showing that Salesforce is successfully expanding relationships within its large installed customer base.
That matters because selling more products to existing customers is typically more profitable than acquiring new ones. It also demonstrates that enterprises are willing to spend more on Salesforce's AI platform despite the uncertain economic environment.
CRM’s Revenue Growth Shows Signs of ImprovementOne of the biggest investor concerns has been Salesforce's slowing growth. As the company became larger, revenue growth naturally moderated from the high-growth rates seen several years ago, leading many investors to believe Salesforce had entered a mature phase.
Recent results paint a more encouraging picture. First-quarter fiscal 2027 revenues increased 13.3% year over year, marking a noticeable acceleration from recent quarters. While Salesforce is still way behind its earlier hypergrowth phase, double-digit growth remains impressive for a company of its scale.
Management's guidance also reflects confidence in demand. Salesforce expects revenues to grow 10-11% in the fiscal second quarter and approximately 11% for the full fiscal year. Those projections are largely in line with Zacks Consensus Estimates and suggest that growth remains healthy despite a cautious enterprise spending environment.
Image Source: Zacks Investment Research
Salesforce’s Valuation Leaves Room for UpsideThe recent share price weakness has also made Salesforce's valuation more attractive. CRM currently trades at a forward 12-month price-to-earnings (P/E) ratio of 11.26, well below the industry average of 26.32.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared with peers, Salesforce also appears reasonably valued. SAP and Workiva trade at forward P/E multiples of 17.74 and 16.24, respectively, while Adobe trades at 8.36 times forward earnings. Although Adobe is cheaper, Salesforce's valuation looks attractive considering its improving growth profile and expanding AI business.
Final Thoughts: CRM Stock Seems Worth HoldingSalesforce still faces legitimate challenges. The software industry is adjusting to the rise of AI, enterprise customers remain cautious about spending, and macroeconomic uncertainty could continue to weigh on near-term demand.
However, the recent decline appears to reflect investor sentiment more than weakening fundamentals. Salesforce is rapidly building one of the industry's strongest enterprise AI platforms and is showing early signs of reaccelerating revenue growth. At the same time, its expanding AI ecosystem is creating new monetization opportunities while strengthening customer relationships.
With the stock trading at a meaningful discount to the broader software industry, much of the near-term uncertainty already appears to be reflected in the valuation. While volatility may persist, the company's long-term growth story remains intact. For existing investors, holding the stock continues to look like the more sensible strategy than selling into the recent weakness.
Salesforce carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Salesforce uvedl, že kombinované roční opakované tržby z AI a dat v 1. čtvrtletí fiskálního roku 2027 vzrostly o 200 % na 3,4 miliardy USD. Firma zároveň zvýšila dolní hranici výhledu tržeb pro fiskální rok 2027 na 45,9–46,2 miliardy USD.
Key Takeaways Data 360 is becoming a key growth driver for Salesforce as enterprises invest more in AI and connected data.CRM's combined AI and data ARR surged 200% YoY to $3.4 billion in the first quarter of fiscal 2027.Informatica fortifies Salesforce's Data 360 with better integration, governance and management capabilities. Salesforce, Inc. (CRM - Free Report) is strengthening its artificial intelligence (AI) strategy by expanding Data 360, its unified data platform that helps businesses connect customer information across applications. As enterprises invest more in AI, high-quality and connected data has become essential, making Data 360 an increasingly important growth driver for Salesforce in fiscal 2027.
The platform is benefiting from the company’s broader AI initiatives, especially Agentforce. During the first quarter of fiscal 2027, Salesforce reported that combined AI and data annual recurring revenues (ARR), including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion. This reflects a whopping 200% year-over-year surge. The company also noted that 50% of Agentforce and Data 360 bookings came from existing customers expanding their spending, highlighting strong cross-selling opportunities within its installed customer base.
The recently completed Informatica acquisition further strengthens Salesforce’s Data 360 by improving data integration, governance and management capabilities. Management expects the combination to help customers move AI projects from pilot stages to enterprise-wide deployment, creating additional revenue opportunities. The company also stated that Informatica contributed to first-quarter revenue outperformance and that integration synergies are already emerging.
Salesforce’s financial performance reflects this momentum. First-quarter fiscal 2027 revenues increased 13% year over year to $11.13 billion, while current remaining performance obligations (cRPO) climbed about 14% to $33.6 billion. Management also raised the lower end of its fiscal 2027 revenue guidance to $45.9-$46.2 billion from $45.8-$46.2 billion projected earlier.
With enterprises increasingly linking AI success to trusted data, Data 360 is becoming a key differentiator for Salesforce. Continued adoption, combined with deeper customer expansion and AI demand, could support stronger revenue growth throughout fiscal 2027 and beyond. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $46.09 billion, indicating a year-over-year increase of approximately 11%.
How Do Rivals Fare Against CRM in AI Enterprise Space?Two major competitors of Salesforce in the AI-powered enterprise software market are Microsoft Corporation (MSFT - Free Report) and Oracle Corporation (ORCL - Free Report) . Both are aggressively investing in AI to capture enterprise spending.
Microsoft is leveraging its strong position in cloud computing and business software through Dynamics 365 and its partnership with OpenAI. In the third quarter of fiscal 2026, Microsoft’s Azure and other cloud services revenues grew 40% year over year, while its AI business surpassed an annual revenue run rate of $37 billion, surging 123% year over year.
The company continues to embed AI copilots across its software portfolio, helping customers automate sales, service and workflow processes. Microsoft’s massive installed base of Office and Azure customers provides a strong channel for AI adoption, making it a formidable competitor to Salesforce’s Agentforce platform.
Oracle is also strengthening its AI capabilities through Oracle Cloud Infrastructure (OCI) and Fusion applications. In the fourth quarter of fiscal 2026, Oracle’s total cloud revenues increased 47% year over year to $9.9 billion. OCI revenues surged 93% to $5.8 billion, reflecting strong demand for AI workloads and enterprise applications.
Oracle is integrating AI agents across its ERP (Enterprise Resource Planning), customer experience and database products, allowing customers to automate business functions. Its growing cloud business and deep enterprise relationships position Oracle as a key challenger as companies increase spending on AI-driven software solutions.
Salesforce’s Price Performance, Valuation and EstimatesShares of Salesforce have plunged 38.4% year to date, while the Zacks Internet – Software industry has fallen 12.8%.
Salesforce YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 11.11, significantly below the industry’s average of 25.65.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 12.8% and 9.7%, respectively. Estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Salesforce koupí Fin za 3,6 miliardy USD, aby urychlil přechod na AI model založený na výsledcích a využití. Fin už má autonomní řešení s mírou vyřešení 76 % bez zásahu člověka.
Like virtually all software stocks, enterprise software-as-a-service (SaaS) giant Salesforce (CRM +5.41%) has been hit hard this year. Shares are down a stunning 42% on the year and now trade just slightly higher than 10 times this year's adjusted (non-GAAP) earnings per share guidance.
The decline is not unique to Salesforce, though; the entire software sector has been decimated due to fears over artificial intelligence's new ability to code as well as the best human engineers.
Software bulls would say that artificial intelligence (AI) could actually benefit certain software companies as long as they can pivot from a subscription model to a usage- or outcome-based model.
On that note, Salesforce just made an acquisition that has actually already made this transition and is now growing at triple-digit rates. Given that Salesforce needs to do the same, this acquisition isn't just about the acquiree's revenue and profits but also about the capabilities it could bring to the whole organization.
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What is Fin, and why did Salesforce buy it? On June 15, Salesforce announced it was buying customer service software company Fin, formerly known as Intercom, for $3.6 billion.
Some may think that Salesforce just acquired another "me too" customer service software suite. But Fin has proven itself to be more than that. When OpenAI released ChatGPT back in late 2022, Intercom founders Eoghan McCabe and Des Traynor went all in on artificial intelligence.
McCabe had a relationship with OpenAI even before ChatGPT debuted, and he was quick to introduce its new AI-powered software in early 2023. At first, the software was dedicated to helping customer service agents via automated summaries and inbox improvements. But when GPT-4 came out, Intercom decided to develop a fully customer-facing autonomous customer service agent called Fin and even renamed the company after it.
Fin has evolved to model-building and outcome pricing With years of expertise in customer service software and a strong focus in this area, Fin appears to have married its proprietary knowledge with the capabilities of new language models, making it a true, fully autonomous customer service agent.
At first, Fin used either OpenAI's ChatGPT or Anthropic's Claude as the underlying intelligence, then incorporated Fin's proprietary data and expertise to understand the complexities of a customer service call. When Fin launched, it resolved about 25% of customer service interactions. By May 2025, that had increased to 56%. Today, Fin's average resolution rate without human intervention averages 76%.
Image source: Getty Images.
What's really exciting about Fin is that in March, it unveiled its own proprietary model called Apex 1.0. So, whereas Fin was previously dependent on external large language models, it now has its own proprietary one built by Fin's 60-person AI technology team. Using its own vertical model specifically developed for customer service, Fin claims it's the highest-performing customer service model on the market, with faster time to first token and lower hallucinations than the large general models.
Just as important is that Fin has already transitioned to an outcome-based pricing model, where the customer pays only for fully automated customer service resolutions. That has resulted in reaccelerating growth for Fin, which saw its agentic annual recurring revenue (ARR) reach around $100 million and grow at 350% at the time of the transaction. Fin also had some legacy software ARR of around $300 million, bringing the total to $400 million. So, Salesforce is paying about 9 times sales.
But Salesforce is buying a lot more than that Of course, Salesforce isn't just buying Fin's growing ARR. Rather, it's buying a team of AI technologists who have already made the exact transition Salesforce needs to make -- from a recurring, subscription-based, human-driven software business to an outcome- or usage-based agentic AI software business powered by its own internally developed models.
The trepidation around that transition is why Salesforce has fallen to an extremely low valuation of just 10 times this year's earnings guidance. However, if Fin and Fin's team can help successfully deploy AI agentic capabilities across Salesforce's vast, far-reaching enterprise, that could very well ensure Salesforce's pivot is a success.
And if that happens, the stock has tremendous recovery potential from its current depressed valuation.
Salesforce v 1. čtvrtletí zvýšil tržby o 13,3 % na 11,13 miliardy USD a zvedl celoroční výhled tržeb na 45,9–46,2 miliardy USD. Agentforce ARR navíc překonal 1 miliardu USD.
A month has gone by since the last earnings report for Salesforce (CRM - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Salesforce due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
CRM Q1 Earnings Top Estimates, Revenues Rise Y/Y on ARR MilestoneSalesforce delivered a solid first-quarter fiscal 2027 non-GAAP earnings of $3.88 per share, up 50.4% year over year. The bottom line beat the Zacks Consensus Estimate by 24.4%.
Revenues rose 13.3% year over year to $11.13 billion and exceeded the consensus mark by 0.68%. Results reflected continued customer demand for Salesforce’s agentic offerings, with Agentforce ARR surpassing the $1 billion milestone.
Salesforce’s Q1 Performance in DetailSubscription and support revenues (95.1% of total revenues) increased 13.9% year over year to $10.59 billion, accounting for the bulk of total revenues. Professional services and other revenues (4.9% of total revenues) totaled $540 million, indicating relatively stable services activity during the quarter.
Within the updated revenue disclosure framework, Agentforce Apps revenue was $6.91 billion, while Data 360, Headless Platform and Other contributed $3.68 billion. Regionally, the Americas (65% of total revenues) generated revenues of $7.23 billion and grew 11.8% year over year. Europe (24.7% of total revenues) delivered revenues of $2.75 billion, reflecting year-over-year growth of 17.8%, while Asia Pacific (10.25 of total revenues) contributed revenues of $1.15 billion, up 12% year over year.
Profitability also improved. Non-GAAP operating income totaled $3.87 billion, up 22% from the year-ago quarter’s $3.17 billion. Moreover, the non-GAAP operating margin expanded 250 basis points to 34.8%, supported by operating leverage and disciplined spending. Management emphasized productivity gains from the internal adoption of AI tooling, even as it continued to invest in go-to-market capacity.
Salesforce’s Balance Sheet & Other DetailsSalesforce exited the first quarter with cash, cash equivalents and marketable securities of $11.83 billion, up from $9.57 billion at the end of the previous quarter. CRM generated an operating cash flow of $6.70 billion and a free cash flow of $6.56 billion in the first quarter.
As of April 30, the current remaining performance obligation (CRPO) was $33.6 billion, up 13.5% year over year. The company returned $27.5 billion to shareholders during the quarter, including $27.1 billion in share repurchases and $365 million in dividends. CRM also launched a $25 billion accelerated share repurchase program, with an upfront delivery of 103 million shares, which management said boosted both GAAP and non-GAAP per-share results in the quarter.
Salesforce Lifts FY27 Revenue OutlookLooking ahead, Salesforce raised the midpoint of its fiscal 2027 revenue outlook to $45.9-$46.2 billion. The company reiterated non-GAAP operating margin guidance of 34.3%, reflecting higher restructuring.
For the second quarter, Salesforce expects revenues of $11.27-$11.35 billion and non-GAAP earnings of $3.25-$3.27 per share.
Management expects momentum in Agentforce, Data 360 and Slack to continue, while noting that Marketing and Commerce weakness, along with softer Tableau bookings and renewals, remains a key item to watch.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, Salesforce has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Salesforce has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Akcie Salesforce letos klesly asi o 40 % na nové 52týdenní minimum, přesto tržby vzrostly o 13 % na 11,1 miliardy USD. AI a datové produkty přinesly 3,4 miliardy USD ARR a Agentforce přesáhl 1 miliardu USD.
Few of the market's large-cap software names have fallen as hard this year as Salesforce (CRM +2.22%). The stock recently set a fresh 52-week low and is down about 40% year to date, leaving it among the worst performers in enterprise software. What makes the slide unusual is that the underlying business keeps setting records.
The company reported results for its fiscal first quarter of 2027 (the period ended April 30, 2026) in late May, and the numbers were strong. So why does the stock keep falling?
The answer has little to do with the latest quarter and almost everything to do with a single fear: that artificial intelligence (AI) agents will erode the per-seat subscriptions that software companies like Salesforce have long sold. If a handful of agents can do the work of many employees, the worry goes, customers will eventually need fewer paid seats. In addition, there's an overarching fear that AI will increasingly handle what software companies do today.
Image source: Getty Images.
What the latest quarter actually showed The fiscal first-quarter results suggest that fear may be overblown, at least for now. Salesforce's revenue rose 13% year over year to $11.1 billion, though about 4.4 percentage points of that growth came from its recent Informatica acquisition. Stripping that out, organic growth was closer to the high-single-digit pace the company has run at for a while.
More telling, however, was what happened beneath the top line. Salesforce's AI and data products generated $3.4 billion in annual recurring revenue (ARR), up about 200% from a year earlier, and its Agentforce agentic AI offering alone crossed $1 billion in ARR after more than tripling. And rather than shrinking, the seat count in the company's largest products grew.
"Our largest applications, sales and service, saw year-over-year seat growth with humans and agents both expanding on the platform," said Salesforce chief operating and finance officer Robin Washington in the company's fiscal first-quarter earnings call.
That dynamic, with customers paying for more seats rather than fewer even as they adopt automation, sits at the center of the bull case. Salesforce is also leaning hard into new ways to charge for AI, including usage-based pricing and a recent $3.6 billion deal to acquire Fin, an AI customer service platform.
The profit picture looks healthy, too. Salesforce's non-GAAP (adjusted) operating margin reached a record 34.8%, and the company generated $6.6 billion in free cash flow during the quarter. Salesforce also returned $27.5 billion to shareholders, the bulk of it through a $25 billion accelerated share repurchase that was the largest in its history. That buyback shrank the share count by about 10% from a year earlier.
Is the sell-off a buying opportunity? Not everything in the quarter, however, was reassuring. Management pointed to ongoing weakness in the company's commerce and Tableau businesses. Salesforce has also cut staff repeatedly over the past year as it reorganizes around AI. Of course, this can be viewed as both a negative and a positive.
Additionally, investors will need patience. Management is guiding for organic revenue growth to reaccelerate in the back half of the fiscal year -- a recovery investors will have to wait to see.
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The real problem for the stock recently may have been valuation. Only now is the stock starting to look reasonably priced in light of the risks of technological change that software companies face. After the sell-off, Salesforce trades at a forward price-to-earnings ratio of about 12, using the midpoint of management's full-year adjusted earnings outlook. For a profitable business still growing revenue at a double-digit rate and expanding its margins while buying back stock aggressively, that is a fairly attractive multiple.
So, is it finally time to buy? I'm staying cautious. The numbers increasingly suggest AI is acting as a catalyst for Salesforce rather than a threat. But the broader uncertainty over how AI will reshape software isn't going away soon, and that overhang could keep a lid on the valuation premium investors are willing to pay for software stocks for years, even ones executing as well as this one.
Overall, buying a small, undersized position here could make sense for investors comfortable with the AI disruption overhang that could plague the stock for years. From there, I'd only build the position into a meaningful stake if the stock falls significantly further. Approaching the stock this way gives investors the flexibility to profit if things go well, and to potentially keep buying a good business at an even better price.
