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SAN FRANCISCO--(BUSINESS WIRE)--Salesforce (NYSE: CRM), the #1 AI CRM, today announced it has granted equity awards under its 2014 Inducement Equity Incentive Plan (the "Plan") to new employees who joined Salesforce in connection with the acquisition of m3ter and Fin. The Plan was adopted by the Salesforce Board of Directors in July 2014, in accordance with New York Stock Exchange Rule 303A.08. Under the Plan, Salesforce granted a total of 278,068 restricted stock units ("RSUs") to 28 employees.

Salesforce's AI products are growing at triple-digit rates while the stock sits near a 52-week low, and that gap between momentum and valuation may be exactly what the market keeps getting wrong.

The 24/7 Wall St. price target for Salesforce (NYSE:CRM | CRM Price Prediction) is $346.52 over the next 12 months. Shares trade at $242.92, so the target implies about 42.6% upside.

24/7 Wall St. Price Target Summary

Metric
Value

Current Price
$242.92

Price Target from 24/7 Wall St.
$346.52

Upside/Downside
42.6%

Model Rating
BUY

Confidence Level
90%

Our model has high confidence in that rating. The thesis comes down to one point: Agentforce and Data 360 are growing much faster than the share price reflects, and a large buyback keeps reducing the share count.

The market still prices Salesforce like a mature app vendor. The AI numbers point to something more.

Braze Deal Revives the Cost Debate After a Choppy Year
Over the past week shares rose 2.06%, and over the past month they gained 2.1%. They are still down 7.65% year to date. The stock trades 9.3% below its 52-week high of $267.80 and 66.3% above its low of $146.06. On Tuesday, Salesforce announced a deal to buy Braze (NASDAQ:BRZE), and the stock fell as investors balked at the price tag (MarketWatch).

Second-quarter fiscal 2027 revenue came in at $11.345B, +10.8% YoY, beating consensus. Non-GAAP EPS of $5.90 exceeded the $3.27 estimate, although about $2.53 per share came from gains on strategic investments. Management raised full-year revenue guidance to $46.10B-$46.40B.

Why Bulls See $387 Within Reach
Agentforce ARR passed $1.5B, +240%+ YoY, and combined Agentforce and Data 360 ARR reached about $3.9B. Agentic Work Units hit 3.2 billion in the quarter, up 97% sequentially. Only 5% of eligible knowledge workers have moved to premium editions, which carry a 60% to 80% premium.

That leaves a long time for upgrades, and ClaudeForce requires premium editions. Analyst sentiment is positive too: 6 strong buy and 32 buy ratings against a consensus target of $285.68. The bull case reaches $387.36.

Acquisition Costs and Flat Profits Could Stall the AI Payoff
Operating income was $2.331B (flat YoY), and restructuring charges rose to $94M vs $4M. Free cash flow is expected to grow only ~4-5% this year. Shareholders’ equity fell 37.42% after the debt-funded buyback.

Integrating Informatica, Contentful, Fin and now Braze also adds execution risk. On the other side, the buyback cut diluted shares to 821M from 962M at an average price of $176 per share, and that will boost per-share earnings. The bear case of $282 still stands above today’s price.

Salesforce Trades Cheaper Than Microsoft and Generates More Cash Than Oracle
Microsoft (NASDAQ:MSFT) competes head-on through Copilot and Dynamics. Its AI run rate hit $37 billion, yet it trades at 30x earnings and 59x free cash flow. Salesforce trades at 27x and 13.85x.

Oracle (NYSE:ORCL) shows the capital-heavy path to AI. Revenue grew 29.61%, but free cash flow was -$5.396B. Next to these two, our 24/7 Wall St. price target looks reasonable.

Company
Trailing P/E
Latest Quarter Revenue Growth

Salesforce
27x
10.8%

Microsoft
30x
17.75%

Oracle
Not available
29.61%

AI Momentum Supports a BUY Rating
The 24/7 Wall St. price target of $346.52 comes with a buy rating at 90% confidence. The deciding factor for me is AI revenue growing past 200% while the stock trades at 16x forward earnings (the same AI expansion is raising a whole group of suppliers we profiled in a free report on seven AI stocks that aren’t chipmakers).

My view improves if premium-edition upgrades speed up. It weakens if deal costs keep operating income flat.

Year
Price Target from 24/7 Wall St.

2026
$252.93

2027
$346.52

2028
$443.40

2029
$536.67

2030
$594.23

The projections assume Salesforce keeps executing on its current strategy. The biggest key factors are how quickly Agentforce consumption grows and whether the acquisitions integrate smoothly.

Contact [email protected] for any questions or corrections.

Salesforce Fuels AI Engine With $5.66B Braze BuyoutSalesforce said it intends to acquire Braze NASDAQ: BRZE, a customer engagement platform focused on real-time and mobile communications, in a transaction valued at approximately $5.66 billion in enterprise value. The companies expect the deal to close during Salesforce’s fiscal 2028, subject to Braze shareholder approval, regulatory review and other customary closing conditions.

Under the agreement, holders of Braze Class A common stock would receive $47.50 in cash per share. Salesforce President and Chief Operating and Financial Officer Robin Washington said the purchase price represents about five times Braze’s expected fiscal 2028 revenue and approximately 2.5% of Salesforce’s enterprise value.

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MarketBeat Week in Review – 09/21 - 09/25Salesforce expects to fund the acquisition with cash and said it does not currently expect to require debt financing. Washington said the purchase amount is equivalent to roughly four months of Salesforce’s anticipated fiscal 2027 annual free cash flow.

Focus on Real-Time, Agentic Marketing
Salesforce President of Applications and Marketing Patrick Stokes said the proposed acquisition is intended to expand Salesforce’s marketing capabilities as brands seek more immediate, personalized interactions with customers across mobile apps, the web, email, SMS, WhatsApp and other channels.

Braze Beat Expectations—Now 2 SaaS Peers Are in FocusStokes said marketers increasingly need technology that can understand customer activity, make decisions and act in real time. He described Braze as a platform designed to help marketers quickly deliver customer communications and coordinated journeys at consumer scale, particularly in mobile environments.

“The best ideas have a shelf life,” Stokes said, arguing that marketers need the ability to act while a customer moment is still occurring.

According to Salesforce, Braze serves approximately 2,700 customers, including Canva, Dairy Queen, Equinox, Instacart, Urban Outfitters and Venmo. Stokes said Braze’s event-streaming architecture uses live customer behavior to power personalized messaging and customer journeys, with trillions of messages and journey actions processed annually.

Salesforce expects Braze’s real-time engagement, mobile and AI optimization capabilities to complement its Data 360, Customer 360, Agentforce and Slack offerings. Stokes said combining Braze with Salesforce’s data tools, trust layer, global distribution and partner ecosystem could provide marketers with more context and intelligence at greater scale.

Braze to Continue Operating as Braze
Braze Co-Founder and Chief Executive Officer Bill Magnuson said the company was built around the idea that marketers’ creativity is a competitive advantage for brands. He said Braze has spent 15 years developing a real-time, cloud-native platform designed to turn marketing ideas into customer relationships.

Magnuson said Salesforce is the appropriate home for Braze’s next phase of growth. Following the close, he expects Braze’s real-time engagement and AI decisioning capabilities to complement Salesforce’s architecture, including Data 360, Customer 360, Agentforce and Slack.

“Braze will continue building as Braze, and I’ll continue as CEO of Braze within Salesforce,” Magnuson said.

He also said the two companies would remain separate and independently operated until the deal closes, with each continuing to serve its own customers. Salesforce said the transaction remains subject to customary closing conditions, including approval by Braze shareholders and required regulatory approvals.

Financial Outlook Unchanged for Fiscal 2027
Washington said the transaction satisfies Salesforce’s acquisition framework across customer success and strategic fit, acceleration and value. She said Braze would add mobile and data-engineering talent, while Salesforce’s global go-to-market organization could expand Braze’s reach internationally.

Both Braze founders and the company’s broader leadership team are expected to join Salesforce after the close, according to Washington.

Salesforce expects the transaction to provide growth accretion while creating near-term profitability dilution. Washington said the company anticipates operating efficiencies following the close and plans to report Braze’s revenue contribution for one year after the transaction is completed.

Because the acquisition is not expected to close for some time, Salesforce said it is making no change to its fiscal 2027 guidance. The company also said its fiscal 2030 framework remains unchanged. Salesforce said it is in its third-quarter quiet period and would not provide further commentary until its upcoming third-quarter earnings call.

About Braze (NASDAQ:BRZE)Braze, Inc is a customer engagement software company that provides a platform for businesses to build, manage and measure personalized interactions with consumers. Its technology is designed to help brands communicate with customers across digital channels, including mobile applications, websites, email, SMS and messaging services.

The Braze platform supports customer data collection and segmentation, campaign creation, journey orchestration, experimentation and engagement analytics. Its capabilities include in-app and web messaging, push notifications, email marketing, content personalization and automated lifecycle campaigns.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Braze Right Now?Before you consider Braze, you'll want to hear this.

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While Braze currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

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Salesforce (CRM) is an important bellwether for the software sector, according to @ProsperTradingAcademy's Mike Shorr, especially after the stock muscled a strong rebound from the SaaS-acre lows. He turns to UnitedHealthcare (UNH) as a resilient stock in a volatile stock market, and points to Tesla (TSLA) pulling back to its 50-day SMA as a bullish indicator.

Salesforce Today

$242.00 -0.43 (-0.18%)

As of 10:12 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$146.32▼

$269.110.73%

21.92

$278.40

Salesforce NYSE: CRM recently announced a definitive agreement to acquire customer engagement platform Braze NASDAQ: BRZE in an all-cash deal valued at approximately $5.66 billion in enterprise value.

The deal, priced at $47.50 per share, represents an approximately 58% premium over Braze's previous closing price.

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This move by Salesforce signals a well-capitalized push to build out the autonomous artificial intelligence (AI) enterprise sector.

The premium sparked a predictable near-term dip in Salesforce shares, yet the integration of real-time B2C engagement architecture provides the data infrastructure needed to power the Agentforce ecosystem into the future.

Following the Money: Arbitrage and Acquisition MathBraze Today

$45.52 -0.05 (-0.10%)

As of 10:12 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$15.26▼

$45.61$43.38

When a large technology operation deploys billions in an all-cash buyout, the trading reaction generally follows a distinct pattern. Braze's share price immediately jumped over 50% to align near the acquisition target price. This jump neutralized previously bearish short interest and triggered forced covers by legacy short sellers.

Braze's trading volume climbed to over 64 million shares, a substantial increase that dwarfs the historical average of just under two million daily shares. This liquidity influx signals rapid institutional positioning as arbitrage traders step in to lock in the remaining spread between the current trading price of around $45.50 and the $47.50 buyout offer.

Conversely, Salesforce's share price fell slightly in extended trading, dropping toward $241. The broader market often penalizes the acquiring business in the near term. This localized downward pressure prices in the immediate capital outlay and the inherent friction of absorbing a new corporate entity.

For value-conscious investors, these acquisition-driven dips often create compelling entry points, provided the underlying strategic rationale holds up under fundamental scrutiny. The current setup offers a clear look at market mechanics reacting to sudden capital reallocation.

Buying Time and Tech: The Cost of Cloud InnovationPaying an approximate 58% premium values Braze at roughly 8.5 times its $5.53 book value per share and about 7 times its trailing 12-month revenue of $738 million. For a target operating with a net loss of around $131 million and negative profitability margins, the valuation might initially seem steep.

Salesforce is not acquiring hard physical assets or immediate bottom-line cash flow. The multiple reflects the strategic need to acquire a proprietary artificial intelligence event-streaming architecture alongside a roster of nearly 2,770 enterprise clients.

Legacy customer relationship management systems traditionally rely on batch data processing. This older methodology adds latency to marketing campaigns, so brands often react to customer behavior hours or days after the fact.

Braze's technology provides a cloud-native infrastructure that can process live customer signals. This continuous data flow fuels Agentforce, Salesforce's newly launched autonomous AI platform. Real-time data ingestion lets AI agents make instantaneous decisions across mobile apps, web platforms, and messaging services.

Following the recent acquisition of AI analytics operator Loops on Oct. 12, 2026, this transaction establishes a clear strategic pattern. Salesforce is aggressively building a comprehensive ecosystem to defend its market share by ensuring its B2C architecture is built for the modern era. Building comparable cloud-native data streaming internally would likely take Salesforce's development teams years. Management clearly views the $5.66 billion price tag as a calculated cost for speed to market, prioritizing immediate technological capability over slow organic development.

Balance Sheet Strength Meets Integration RiskFinancing a transaction of this scale entirely in cash requires a fortress balance sheet, and the data supports Salesforce's capacity to execute the deal. Salesforce operates with a conservative debt-to-equity ratio of 1.02 and generates strong operational liquidity, evidenced by approximately $16.38 per share in cash flow.

The core business maintains a robust net margin of around 22% and a return on equity approaching 25%. A forward price-to-earnings ratio near 18.9, noticeably lower than its trailing multiple of 22.1, suggests the underlying enterprise software business continues to scale efficiently despite broader macroeconomic headwinds.

This capital elasticity allows Salesforce to absorb the Braze acquisition without straining its leverage metrics or jeopardizing its dividend yield of about 0.7%. Most importantly, the cash deployment does not compromise the active $25 billion stock buyback program, which continues to provide a defensive floor for the stock price.

Still, inorganic growth carries substantial execution risk. Stacking major software acquisitions introduces operational complexity. Integrating separate data architectures requires extensive engineering resources, and overlapping sales teams often create temporary inefficiencies.

Historically, these transitional phases can compress operating margins before the intended technological benefits and financial alignments fully materialize. Investors should closely monitor the coming quarters to see whether the integration disrupts core operations or delays planned product rollouts.

Clearing the Hurdles: Target Dates and TimelinesManagement strategically set the expected closing timeline for fiscal year 2028. This extended horizon accomplishes two distinct objectives for shareholders. First, it provides a realistic buffer to clear expected antitrust scrutiny from the Federal Trade Commission regarding marketing software consolidation. Regulatory reviews for large-cap technology acquisitions have become increasingly stringent, and a longer runway sets appropriate investor expectations. Second, the delayed closing insulates the fiscal 2027 earnings outlook from immediate integration costs, preventing unwanted surprises in the near-term guidance.

Salesforce Stock Forecast Today12-Month Stock Price Forecast:
$278.40
14.68% Upside

Moderate Buy
Based on 51 Analyst Ratings

Current Price$242.77High Forecast$400.00Average Forecast$278.40Low Forecast$165.00Salesforce Stock Forecast Details

During this multi-year transition, client retention within the Braze ecosystem will serve as a primary health metric. Keeping prominent enterprise customers engaged while migrating backend systems dictates whether the projected revenue multiples justify the upfront premium.

Institutional confidence in the core Salesforce business remains intact, bolstered by recent analyst upgrades tied to Agentforce revenue projections. Strong cash flow, an aggressive share repurchase program, and a clear vision for the future of automated enterprise software create a solid foundation.

Investors might consider adding Salesforce to their watchlist as the broader market digests the initial acquisition costs. Those evaluating long-term software infrastructure trends could view the current consolidation phase as a necessary foundational step toward the next generation of autonomous enterprise tools. The roadmap is clear, and the capital is deployed. Now, execution dictates the eventual return on investment.

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MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Salesforce wasn't on the list.

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Salesforce said on Tuesday that it is making a nearly $6 billion acquisition at a 58% premium, but Wall Street's response was frosty.

Salesforce Inc (NYSE:CRM, XETRA:FOO)’s $5.66 billion deal for Braze Inc (NASDAQ:BRZE) sent the customer-engagement software company’s shares soaring, with rival Klaviyo also climbing as investors reassessed the sector’s value.

Salesforce will pay $47.50 in cash for each Braze Class A share, representing a 58% premium to the previous closing price of $30.04.

Braze shares remained below the agreed offer price, leaving a $2.22 gap between the market price and the proposed cash payment as the transaction awaits completion.

The deal is valued at approximately $5.66 billion on an enterprise-value basis and is expected to close in Salesforce’s financial year 2028, subject to regulatory and shareholder approvals.

Braze provides software that allows businesses to coordinate personalised customer communications across mobile apps, websites, email and messaging services, adapting interactions to customer behaviour in real time.

Its artificial intelligence tools help marketers optimise content, offers, communication channels and timing, giving Salesforce additional technology to strengthen its marketing and customer-management products.

The acquisition forms part of Salesforce’s broader push into artificial intelligence as software companies seek to strengthen their offerings amid concerns that the technology could disrupt traditional software demand.

Klaviyo’s rise suggests investors are reassessing valuations across the customer-engagement software sector following Salesforce’s willingness to pay a substantial premium for Braze.

Klaviyo also provides marketing technology that helps businesses use customer data to personalise communications and automate campaigns, making it a relevant comparison for investors evaluating the acquisition.

Salesforce does not expect the proposed acquisition to change its financial year 2027 outlook, although the agreement includes termination fees of $300 million for Salesforce and $191.4 million for Braze if the deal is abandoned under specified circumstances.

Salesforce signed a deal to buy Braze for about $5.66 billion including debt, adding a customer-engagement platform to its portfolio.

Apple and Salesforce are doing well while the AI buildout sector reels. Consumer and healthcare names are coming to the fore.

Salesforce (CRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this customer-management software developer have returned +1.6%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Software industry, which Salesforce falls in, has gained 5.4%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Salesforce is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of +5.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $16.71 points to a change of +33.5% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $15.89 indicates a change of -4.9% from what Salesforce is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Salesforce.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Salesforce, the consensus sales estimate of $11.46 billion for the current quarter points to a year-over-year change of +11.7%. The $46.25 billion and $50.7 billion estimates for the current and next fiscal years indicate changes of +11.4% and +9.6%, respectively.

Last Reported Results and Surprise HistorySalesforce reported revenues of $11.35 billion in the last reported quarter, representing a year-over-year change of +10.8%. EPS of $5.9 for the same period compares with $2.91 a year ago.

Compared to the Zacks Consensus Estimate of $11.32 billion, the reported revenues represent a surprise of +0.25%. The EPS surprise was +80.43%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Salesforce is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Salesforce. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Support Confluence Revives Bullish Outlook
Salesforce, Inc. (CRM), a leading cloud-based enterprise software company, recently completed its first pullback after a significant breakout, finding support at a confluence of technical indicators before strengthening. A weekly bullish reversal signal triggered this week on a rally above last week’s high of $235.02, thereby confirming a higher swing low and establishing key structural support at $220.29.

That support area is reinforced by price structure, the 38.2% Fibonacci retracement of the prior advance, and the 50-day moving average, currently near $228 and rising. This confluence strengthens the case that the pullback may have ended and that the broader recovery could resume.

PLANO, Texas--(BUSINESS WIRE)--Argano, the world's first and largest Global Specialist Consultancy exclusively focused on the design and delivery of High-Performance Business Operations with an AI-forward approach to transformation, today announced the acquisition of Oktana Corporation (“Oktana”), a Salesforce Summit Partner specializing in Data & AI and digital engineering. Oktana's expertise across Salesforce Agentforce, Data Cloud, Snowflake, MuleSoft, and the broader Salesforce ecosystem.

Salesforce stock CRM gained more than 2% on Monday after Bank of America upgraded the shares to Buy from Underperform, citing the potential for artificial intelligence to strengthen demand for enterprise software platforms.

The company also announced an agreement to acquire Loops, an AI-powered analytics startup, as it expands its strategy for AI-driven business intelligence.

Bank of America raised its price target for Salesforce to $285 from $160, arguing that large enterprises are unlikely to replace software platforms that manage their data, workflows, business processes, and compliance requirements as they adopt AI.

The upgrade comes as Salesforce shares have declined about 14% in 2026, amid investor concerns that wider AI adoption could reduce demand for traditional software tools.

Bank of America analyst Tal Liani said large enterprises were unlikely to abandon the platforms that support their core business operations. Instead, he expects AI to increase companies' reliance on existing software infrastructure.

“If anything, AI should deepen dependence on these platforms,” Liani said.

The analyst said Salesforce was positioned to benefit across the AI value chain, potentially reducing the risk that foundation models would displace its software.

Greater platform usage, premium upgrades and stronger revenue growth could support the company's long-term performance, according to the brokerage.

Bank of America also cited improving business momentum, including growth in net new annualized order value and stronger performance at Slack.

The bank raised its subscription and support revenue growth forecasts to 10.4% for fiscal 2028 and 10.5% for fiscal 2029, from previous estimates of 9.9% and 10.2%, respectively.

Its revised $285 price target values Salesforce at 16 times its expected free cash flow for 2027, compared with nine times previously, said a Seeking Alpha report.

However, Liani identified slower-than-expected AI adoption as a near-term risk, noting that AI-related revenue remains small relative to Salesforce's overall business.

Salesforce has been expanding its enterprise AI strategy, including its Agentforce platform of autonomous AI-powered agents.

Bank of America's upgrade reflects expectations that these initiatives could help the company attract more customers and support a return to faster growth.

The brokerage's positive view is broadly consistent with analyst sentiment.

According to LSEG data, 36 of the 51 analysts covering Salesforce had Buy or Strong Buy ratings.

Separately, Salesforce announced that it had signed a definitive agreement to acquire Loops, an AI-powered analytics platform designed to monitor business performance, explain changes in key metrics, and identify opportunities for improvement using machine learning.

The acquisition is intended to advance Salesforce's strategy for agentic analytics, which uses AI agents to help customers understand the factors driving business results and determine what actions to take.

Salesforce plans to integrate Loops' technology into Tableau, its data visualisation and analytics platform.

Mark Recher, executive vice president and general manager of Tableau, said the acquisition would build on the platform's existing focus on helping users interpret data and make decisions.

“Loops accelerates this mission, using powerful agentic AI to uncover the drivers behind business performance and surface where teams and agents can take action in real time,” Recher said.

The transaction is expected to close in early November next year.

AI adoption remains a key test for SalesforceThe BofA upgrade highlights an important aspect of Salesforce's AI strategy: increasing the value of its existing software platforms and expanding the use of AI agents to analyse business data.

The brokerage expects improving order growth and Slack performance to support stronger revenue expansion over the coming quarters.

Its forecasts point to a gradual acceleration in subscription and support revenue growth through fiscal 2029.

However, the financial contribution from AI remains an important uncertainty. If customers adopt Salesforce's AI tools more slowly than expected, the anticipated boost to revenue growth could take longer to materialise.

Investors weighing whether the AI-driven rebound has further to run can follow analyst ratings and track the stock’s progress through investment apps.

Salesforce stock climbed amid Bank of America's double upgrade based on improving trends for the monetization of artificial intelligence products.

Salesforce just delivered a massive earnings beat, sent analyst targets soaring, and still managed to lose ground against the broader market. Something about the AI story is not adding up, and the next two quarters will force a reckoning.

Salesforce (NYSE:CRM | CRM Price Prediction) trades at $228.97. The stock keeps swinging hard in both directions no matter how strong the reported numbers look. CNBC recently described the shares as sitting at the epicenter of AI confusion.

Salesforce leads the market for customer relationship management software and now wants to be the system enterprises use to run AI agents through Agentforce. Its latest quarter brought non-GAAP EPS of $5.90 against a $3.27 estimate, and revenue of $11.35 billion. Shares jumped 22.58% on earnings day, then fell 10.61% over the next 30 days.

Agentforce Momentum Meets a 14x Forward Earnings Multiple Agentforce ARR exceeded $1.5 billion, up over 240%, and combined Agentforce and Data 360 ARR reached nearly $3.9 billion. Current RPO rose 14% to $33.5 billion. The stock still trades at a forward P/E of 14 with a free cash flow yield of 7.64%.

Management raised fiscal 2027 revenue guidance to $46.1 billion to $46.4 billion and non-GAAP EPS guidance to $16.67 to $16.71. Analysts followed, with 48 upward revisions and zero downward over 30 days. A buyback cut diluted shares to 821 million from 962 million.

Earnings Beats Keep Fading While Next Year’s Estimates Soften Salesforce has delivered six consecutive EPS beats, yet the stock is down 12.9% year to date. The latest beat contained about $2.53 per share of investment profits, and operating income stayed flat at $2.33 billion. Restructuring charges rose to $94 million from $4 million.

The consensus for fiscal 2028 EPS is $16.02, below the fiscal 2027 figure of $16.75. The January quarter drew 32 downward revisions versus 6 upward. Cash flow growth is expected to only 4% to 5%. Its headless strategy, where “people don’t have to come to Salesforce to get work done,” could also weaken seat-based pricing power.

Strong Demand, Unproven Monetization Model Net new AOV growth was the strongest in four years, and attrition sits near record lows. Those figures point to durable demand. AI pricing, though, still includes per-user, per-agent, consumption and outcome-based models, and management admitted to “continued volatility in overall license revenue.”

Two items will decide it: the promised second-half organic reacceleration and smooth completions of the Contentful and Fin deals. Third-quarter guidance calls for revenue of $11.42 billion to $11.5 billion and cRPO growth near 14%.

Wall Street Sees 24% Upside That the Market Keeps Ignoring The average analyst target of $283.36 implies about 23.75% upside. Among 55 analysts:

Strong Buy: 6 Buy: 32 Hold: 15 Strong Sell: 2 Targets are one input and guarantee nothing. Over the past year, Salesforce fell 5.79% while the S&P 500 gained 16%. Year to date, the index is up 14.17%. The 52-week range of $146.06 to $267.80 shows how much the stock has moved.

Salesforce Needs AI to Show Up in Organic Growth At $228.97, Salesforce faces a key test.

The valuation is cheap, but cheap stocks can stay cheap. After each of the last two quarterly reports, the stock fell more than 10% within 30 days. That pattern suggests investors see the AI story as unproven.

A stronger outlook would require third-quarter organic revenue growth at the top of guidance, steady cRPO growth and stable fiscal 2028 estimates. A weaker outlook would follow a missed reacceleration or slipping integration progress. The next one or two quarters will test that theory.

Salesforce trades at a low multiple, and Agentforce must lift organic growth to change the market’s view.

Contact [email protected] for any questions or corrections.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Salesforce (CRM - Free Report) .

Salesforce currently has an average brokerage recommendation (ABR) of 1.69, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 54 brokerage firms. An ABR of 1.69 approximates between Strong Buy and Buy.

Of the 54 recommendations that derive the current ABR, 36 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 66.7% and 3.7% of all recommendations.

Brokerage Recommendation Trends for CRM

Check price target & stock forecast for Salesforce here>>>

While the ABR calls for buying Salesforce, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in CRM?In terms of earnings estimate revisions for Salesforce, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $16.71.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Salesforce. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Salesforce.

Salesforce plunges 15.1% YTD, but stabilizing growth, surging Agentforce adoption and a lower valuation support holding the stock for now.

Salesforce (CRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this customer-management software developer have returned -9.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Internet - Software industry, to which Salesforce belongs, has gained 12.7% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Salesforce is expected to post earnings of $3.43 per share, indicating a change of +5.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $16.71 points to a change of +33.5% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $15.88 indicates a change of -5% from what Salesforce is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Salesforce is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Salesforce, the consensus sales estimate of $11.46 billion for the current quarter points to a year-over-year change of +11.7%. The $46.25 billion and $50.7 billion estimates for the current and next fiscal years indicate changes of +11.4% and +9.6%, respectively.

Last Reported Results and Surprise HistorySalesforce reported revenues of $11.35 billion in the last reported quarter, representing a year-over-year change of +10.8%. EPS of $5.9 for the same period compares with $2.91 a year ago.

Compared to the Zacks Consensus Estimate of $11.32 billion, the reported revenues represent a surprise of +0.25%. The EPS surprise was +80.43%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Salesforce is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Salesforce. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Shares of Salesforce Inc (NYSE:CRM, XETRA:FOO) were up 3.2% on Wednesday after the company signed a definitive agreement to acquire Listen Labs, an AI-powered customer research and human simulation platform. 

Listen Labs' AI agents design studies, conduct in-depth research and synthesize insights, shrinking a process that typically takes months down to days.  

The acquisition will expand Salesforce's customer and user understanding capabilities, complementing Marketing Cloud, Service Cloud and its broader AI portfolio. 

The platform's agents can draw from a global network of more than 50 million participants and run interviews around the clock in more than 120 languages. Its digital twins, AI simulations grounded in real customer behavior, let teams compare approaches and refine plans before further customer or user testing. 

"We look forward to expanding access to these agentic capabilities through Salesforce, helping more companies and governments make faster, better-informed decisions that deliver exceptional customer experiences," said Aman Naimat, President of AI Labs at Salesforce. 

Alfred Wahlforss, CEO and co-founder of Listen Labs, said the combination will put customer understanding at the heart of every decision. 

"With AI, a company can now have thousands of real conversations at once and even simulate how customers will respond before making a move," Wahlforss said. 

Salesforce trades at a fraction of what Microsoft and ServiceNow charge for AI growth, and that valuation gap is drawing serious attention. Whether it closes or widens depends on a bet most investors have not fully priced in yet.

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The 24/7 Wall St. price target for Salesforce (NYSE:CRM | CRM Price Prediction) is $348.23. The target implies 48.76% upside from the $234.08 close, and our model rates the stock a buy with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $234.08 Price Target from 24/7 Wall St. $348.23 Upside/Downside 48.76% Recommendation BUY Confidence Level 90% Salesforce trades at 14x forward earnings while combined Agentforce and Data 360 ARR reached nearly $3.9B, up over 210% year over year. Coupling hypergrowth AI revenue with a value multiple is why we see CRM as the cheapest way to own enterprise AI software.

A Post-Earnings Rally Still Leaves Salesforce Down for 2026 CRM gained 14.02% over the past month but slid 1.64% last week and remains down 11.04% year to date. Shares sit about 12.6% below the $267.80 52-week high and roughly 60.3% above the $146.06 low.

The Q2 FY27 earnings report on August 26 lit the trigger. Revenue of $11.345B rose 10.83%, exceeding the $11.316B consensus. Non-GAAP EPS of $5.90 beat the $3.27 estimate, although strategic investment gains added roughly $2.53 per share.

Management raised FY27 non-GAAP EPS guidance to $16.67-$16.71 from $14.06-$14.12. CEO Marc Benioff said, “We just delivered one of our best quarters ever.” At the September 16 Investor Day, Salesforce repeated its FY30 revenue target of $63B.

Why Bulls See $388 Within Reach Agentforce ARR alone topped $1.5B, up over 240%. Only 5% of Sales and Service knowledge workers have moved to higher-end editions, which carry a 60% to 80% premium, so there is a long room for upgrades.

A $25B accelerated buyback at an average of $176 per share should cut diluted shares to about 821M from 962M. Our bull case lands at $388.36. Wall Street’s consensus target is $281.08, backed by 34 Buy and 6 Strong Buy ratings.

Debt and AI Pilots Could Cap the Upside Noncurrent debt rose to $39.3B from $10.4B, restructuring charges reached $94M versus $4M, and FY27 free cash flow growth is guided to only 4-5%. Management also granted that many customers have only run pilot programs or failed experiments.

The counterpoint is that the debt paid for buybacks below today’s price, while net debt/EBITDA of 0.78 and 27.5x interest coverage still look healthy. The bear case of $283.20 sits above the current price.

Microsoft and ServiceNow Charge Far More for AI Growth Microsoft (NASDAQ:MSFT) competes head-on with Salesforce, opposing Copilot against Agentforce. It trades at 25x forward earnings with 17.7% revenue growth.

ServiceNow (NYSE:NOW) is the closest pure play on agentic workflows. It grows faster at 24%, but trades at 28x forward and 85x trailing earnings.

Company Forward P/E Quarterly Revenue Growth (YoY) Salesforce 14 10.8% Microsoft 25 17.7% ServiceNow 28 24% At our target, CRM would trade at about 23x forward EPS, which is still below both peers. The peer group makes the 24/7 Wall St. price target look reasonable.

Salesforce Price Prediction 2026-2030 Our 24/7 Wall St. price target of $348.23 carries a buy rating at 90% confidence. What tips the scale is a discounted multiple coupling with 14% cRPO growth.

The thesis gets stronger if organic revenue reaccelerates in the second half as management expects. It weakens if Agentforce deployments stall at the pilot programs stage or buyback-related leverage starts to pressure cash flow.

Year Price Target from 24/7 Wall St. 2026 $348.23 2027 $350.01 2028 $458.81 2029 $551.88 2030 $621.41 These projections assume Salesforce keeps working toward its $63B FY30 revenue goal. Faster Agentforce adoption could push results higher, and a stumble integrating Informatica could pull them lower.

Contact [email protected] for any questions or corrections.

Investors are concerned that AI will disrupt its business.

*Stock prices used were the afternoon prices of Sept. 23, 2026. The video was published on Sept. 25, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Salesforce. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Salesforce shares are down nearly 10% this year, and one investor keeps scheduling purchase after purchase anyway. The reasoning comes down to a single strategic asset that every AI model will eventually need to borrow.

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I keep buying Salesforce (NYSE:CRM | CRM Price Prediction) because every serious read of the agentic AI economy points back to the same conclusion: the model needs context, and Salesforce owns the context. Shares trade at $238.40, down 9.37% year to date, and I have been adding on every leg lower. This is the receipts for why.

Cash Machine Hiding In Plain Sight Salesforce generated $14.402 billion in free cash flow in fiscal 2026, up 15.83%. That gives the stock a free cash flow yield of 7.34% at a market cap near $196.2 billion. The trailing P/E sits at 26 and price to free cash flow is only 14. For a business with a 77.68% gross margin and interest coverage of 27.5x, that is the kind of durable cash yield a retirement account is built to compound.

Management is returning that cash aggressively. A $25 billion accelerated share repurchase program is retiring at least 14% of shares outstanding at an average price of $176 per share, well below where the stock trades today. Diluted share count already fell to 821 million from 962 million a year ago. Layer on a quarterly dividend of $0.44, raised from $0.416 and $0.40 in prior periods, and the capital return story is intact.

Agentforce Is Getting Paid Agentforce ARR crossed $1.5 billion in Q2 FY27, up over 240% year over year. Combined with Data 360, ARR sits near $3.9 billion. Current remaining performance obligations hit $33.5 billion, up 14%. Q2 free cash flow grew 81.49% to $1.098 billion. Management raised FY27 revenue guidance to $46.1 billion to $46.4 billion with a non-GAAP operating margin of 34.3%.

The customer voices matter more to me than the numbers. Xero, a customer since 2014 with nearly 5 million subscribers, rolled its Agentforce service agent to 100% of customers and is running a 62% deflection rate across 200,000 interactions. Legora’s CFO put it plainly: “The agent is only as good as the context that you give it. And that context has to come from an authoritative layer.” Salesforce already centralizes customer data, custom business logic, and operational workflows today, which is the moat rivals cannot rebuild in a quarter.

Why Not ServiceNow ServiceNow (NYSE:NOW) is the name I hear most often as the AI-workflow alternative, and it is a fine business. My money stays with CRM because Salesforce’s AI franchise is already producing paying revenue at scale. ServiceNow’s AI revenue today is less than 10% of company revenues. Agentforce plus Data 360 is closing on $4 billion in ARR right now. I would rather own the compounding that is already booked than the compounding that is still projected.

Risk I Actually Watch The real risk is monetization design. Salesforce is still partly tied to older per-user pricing while it develops pricing that better captures agentic activity, and pilots must convert to production. What keeps me buying: 50% of Agentforce bookings came from customers refilling their credits, and Salesforce added 2,000 paying customers into production, up 70% quarter over quarter. Consumption is compounding on itself.

Buy Button Stays Active I own the system of record that every agent, every model, and every custom interface has to trust. As long as free cash flow grows, shares shrink, and Agentforce ARR compounds at triple-digit rates, my next purchase is already scheduled.

Contact [email protected] for any questions or corrections.

NEW YORK--(BUSINESS WIRE)-- #AIAgentSecuritySummit--Zenity Labs uncovers of 3 security vulnerabilities in Salesforce Agentforce.

Wall Street spent all year convinced AI would hollow out Salesforce's business model, and every time the stock dipped, one investor kept adding to the position anyway. Here is why the cash flow and buyback math convinced him the crowd…

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I keep buying Salesforce (NYSE:CRM | CRM Price Prediction) because the market spent most of this year arguing about whether AI would kill it, and management kept quietly stacking evidence that AI is doing the opposite. Every dip this year, I added. Now the sell-side is finally catching up, and I am still not done.

Why My Money Keeps Landing Here The pull is simple. Salesforce owns the system of record where the enterprise actually lives, and the AI layer everyone was afraid would replace it is instead pouring recurring revenue back into it. Agentforce ARR hit $1.5 billion, and combined Agentforce and Data 360 ARR reached nearly $3.90 billion, up over 210% year-over-year. Marc Benioff put it flatly on the Q2 call: “AI isn’t replacing Salesforce. It’s unlocking more value across all four layers of our platform.” That is the thesis in one sentence, and the customer proof points back it. Xero rolled Agentforce to 100% of customers with a 62% deflection rate across more than 200,000 interactions. Uber for Business pointed Agentforce at its lead pile and saw 60% more leads converting within two weeks.

Three Receipts I Keep Rereading First, the cash machine. FY26 free cash flow was $14.402 billion, up 15.83% year-over-year, and Q2 free cash flow of $1.098 billion was up 81.49% year-over-year. Against that, free cash flow yield sits at 7.50% and price-to-free-cash-flow at 13.33. That is a rounding error of a multiple for a business growing subscription revenue 12% year-over-year with gross margins of 77.68%.

Second, the buyback is doing real work. Diluted share count fell to 821 million from 962 million a year ago thanks to a $25 billion ASR, with a new $50 billion repurchase authorization behind it. The quarterly dividend of $0.44 was raised 5.8% year-over-year. The yield is still modest, and it is growing on a shrinking share count.

Third, the visibility. Current RPO of $33.5 billion, up 14% year-over-year, is future revenue already signed. Management raised full-year FY27 revenue guidance to $46.1 billion to $46.4 billion and reaffirmed the FY30 target of $63 billion. Q2 also marked the sixth consecutive quarter of beating EPS expectations, with non-GAAP EPS of $5.90 versus $3.27 consensus.

Why Not the Obvious Alternative The reflex AI trade in enterprise software is Microsoft (NASDAQ:MSFT), and I own it too. But CRM is where I keep adding, because CRM’s forward P/E of 14 and 7.50% free cash flow yield are simply not what Microsoft offers at its current valuation. I am paying a low-teens multiple for double-digit subscription growth and a $50 billion buyback. That math wins my next dollar.

Risk I Refuse to Wave Off Balance-sheet leverage jumped. Total liabilities rose 96.56% year-over-year to fund the ASR, and shareholders’ equity declined 37.42%. That is real. What keeps me steady is interest coverage of 27.5x and net debt/EBITDA of 0.78. This company can service the debt with cash flow it prints in a single quarter.

Conviction From Here The Street is warming up now, with an analyst target price of $281.89 against a current price of $233.28 and 40 buy or strong-buy ratings against just 2 strong sells. I was buying when shares were down 11.32% year-to-date. I will keep buying while the cash flow keeps compounding and the shares keep disappearing.

Contact [email protected] for any questions or corrections.

Salesforce has bled out over 12 months while its enterprise software peers crater even harder, yet one Wall Street firm just planted a flag so far above current prices that it stands alone on the Street. The bull case hinges…

Salesforce (NYSE:CRM | CRM Price Prediction) currently trades at $233.28, while the Wall Street consensus 12-month price target sits at $281.89. That gap works out to roughly 20.8% of implied upside from here.

Salesforce is the default CRM platform for large enterprises. Its Agentforce agentic AI product is the central bull case. Wall Street is watching whether AI monetization can pull growth back into the mid-teens and justify a heavy multi-year investment cycle that includes the Informatica deal, pending Contentful and Fin closes, and a $25 billion accelerated share repurchase.

A Slow Bleed With a Sharp Week at the End Salesforce shares are down 5.76% over the past year and 11.32% year to date, capped by an 8.58% drop in the past week. The stock has visibly lagged a software sector rewarding AI winners.

Q2 FY27 revenue of $11.35 billion grew 10.8% year over year, and FY27 guidance was raised to $46.1 billion to $46.4 billion. Low-teens growth, even with rising Agentforce contribution, has left investors questioning whether Salesforce is a legacy franchise being milked or a genuine AI winner. The reported $5.90 non-GAAP EPS looked strong, but a chunk came from $2.61 billion in strategic investment gains rather than the operating business.

A heavier debt load post-ASR, a $94 million restructuring charge in Q2, and Informatica integration overhang have weighed on the stock.

Why Needham Is Sticking With a $400 Call Even after the drawdown, analysts have not blinked. The consensus target implies 20.8% upside, but Scott Berg at Needham & Company holds the Street-high $400 price target with a Buy rating. That target implies roughly 71.5% upside from current levels, well above the 40% threshold that usually signals an outlier bull case worth taking seriously.

Needham’s thesis rests on three pillars. First, Berg models Agentforce transitioning from early adoption to an enterprise ARR driver, capitalizing on consumption-based pricing. Agentforce ARR alone crossed $1.5 billion, up over 240% year over year, and combined Agentforce plus Data 360 ARR is nearly $3.9 billion. Second, the unified Data Cloud moat prevents point-solution churn as enterprises consolidate spend. Third, management’s reiterated $63 billion FY30 revenue target anchors the bull case.

Of the analysts tracked, 6 rate CRM Strong Buy, 34 Buy, 14 Hold, 0 Sell, and 2 Strong Sell. The FY27 EPS estimate has seen 45 upward revisions and zero downward revisions in the trailing 30 days. Analyst targets are one data point, not a promise, but the direction is up while the stock drifts sideways.

The pain extends across the CRM and enterprise software cohort, though details differ.

ServiceNow (NYSE:NOW) trades near $137, down 26.16% over the past year. The consensus target of $144.99 implies only 5.8% upside, with 10 Strong Buys, 35 Buys, 2 Holds, 1 Sell, and 1 Strong Sell. Wall Street is bullish but has already reset targets lower alongside the price.

Oracle (NYSE:ORCL) trades at $149.20, down a punishing 52.46% from a year ago as investors soured on massive AI-related capex. The consensus target of $237.97 points to 59.5% upside, with 8 Strong Buys, 28 Buys, 7 Holds, and 1 Sell. This is the largest consensus-level dislocation in the group.

HubSpot (NYSE:HUBS) sits at $217.88, off 57.54% over 12 months. The consensus target of $250.37 implies just 14.9% upside, and the rating mix skews cautious with 18 Holds against 15 Buy-equivalent ratings.

Salesforce holds the biggest Street-high call in the group at Needham’s $400. A modest 12-month drawdown paired with an outlier bull target makes CRM’s setup unique inside the cohort.

Salesforce trades at $233.28 against a consensus 12-month target of $281.89 from 56 covering analysts. That leaves 20.8% of implied upside on the average call, and roughly 71.5% on Needham’s Street-high.

The stock’s 11.32% year-to-date decline compares to a 13.42% gain for the S&P 500 proxy. That relative underperformance of roughly 25 percentage points explains the dislocation.

CRM trades at a forward P/E of 14, against management’s guided FY27 non-GAAP EPS of $16.67 to $16.71.

My Take on CRM at $233 The bull case for Salesforce holds if you believe Agentforce follows Needham’s trajectory and pushes total growth back toward the mid-teens by FY28, with consumption-based AI revenue layering on top of the existing subscription base. The 45 upward FY27 EPS revisions with zero downward revisions, the ARR ramp visible in Agentforce, and a forward P/E of 14 on rising numbers support the bull case. If those pieces line up, the path to Needham’s $400 is a re-rating story more than a heroic growth call.

The bear case dominates if you think Agentforce is an interesting product wrapped around a decelerating franchise. The $2.61 billion in strategic investment gains that inflated Q2 EPS, ballooning debt post-ASR, Informatica integration risk, and low-teens growth all argue the market is pricing CRM correctly as a mature software business rather than a re-accelerating AI platform.

The consensus 20.8% upside is defensible on the numbers, and Needham’s $400 is the option value if Agentforce inflects. The Street-high target is best treated as option value, not the base case.

Contact [email protected] for any questions or corrections.