Salesforce, Inc. | CRM
Bullish
Agentforce Is a Growth Engine
Agentforce achieved $540M in ARR with 330% YoY growth, 50% growth in paid deals, and a 70% surge in customer deployments. The AI and Data portfolio hit $1.4B in ARR (up 114% YoY). With nearly 90% of Forbes’ Top 50 AI companies using Salesforce, the company is becoming the de facto platform for enterprise AI transformation, not just tools.
Strong Revenue and Earnings Beat
Salesforce reported $10.26B in revenue (9% YoY growth), with adjusted EPS of $3.25—beating estimates by $0.39. The company also raised its FY26 guidance to $41.45B–$41.55B in revenue and $11.75–$11.77 in adjusted EPS, both exceeding analyst forecasts. This strong top-line and bottom-line beat, especially in a challenging macro environment, signals resilient demand and pricing power.
Strong Analyst Consensus
Of 18 analysts, 14 maintain Buy ratings, with a mean price target of $330—implying a 35% upside from current levels. Morgan Stanley, Bank of America, and Jefferies all reaffirmed Buy ratings. Even with some downgrades, the consensus remains strongly positive, indicating institutional confidence in Salesforce’s AI-led turnaround and long-term potential.
Powerful RPO Pipeline Supports Growth
The company’s cRPO (committed revenue pipeline) grew 11%, and sales capacity expanded by 23%. With a powerful $29.4B RPO pipeline, Salesforce has strong visibility into future revenue. This indicates sustainable growth beyond the current quarter and supports the raised FY26 guidance, even if near-term execution is under scrutiny.
High-Profile Partnerships Validate AI
AstraZeneca selected Agentforce Life Sciences for global AI-driven customer engagement, marking a major win in the life sciences sector. The IRS is also adopting Salesforce’s AI agents to replace lost staff, signaling trust in the platform’s reliability and scalability. These high-profile wins validate Salesforce’s AI strategy and expand its reach into regulated industries.
Informatica Integration Is Accelerating
The Informatica acquisition is accelerating, with Salesforce reporting faster integration and stronger cross-selling. The deal enhances Salesforce’s data and AI infrastructure, giving it a competitive edge in enterprise data management. This strategic move strengthens Salesforce’s moat and positions it as a leader in AI-driven data platforms.
Bearish
Deep Discount Reflects Market Fear
Salesforce’s stock is down nearly 30% in 2025 and trading at its lowest valuation since 2004, despite strong fundamentals like a 35.5% non-GAAP operating margin and robust AI product growth. This deep discount suggests the market is pricing in significant AI disruption risks and monetization delays, indicating that investor sentiment remains fragile and overreacting to near-term uncertainty.
Analyst Downgrades Signal Caution
Despite strong earnings and raised guidance, several analysts have downgraded Salesforce’s price targets, including from Citizens, Baird, and BMO. This reflects lingering skepticism about the company’s near-term growth trajectory and valuation, despite positive fundamentals. The fact that some analysts maintain 'Outperform' or 'Market Outperform' ratings while cutting targets suggests concerns about sustainability and execution risks.
Q4 GAAP EPS Miss Raises Red Flags
Salesforce’s Q4 GAAP EPS guidance of $1.47–$1.49 is significantly below the $1.86 analyst consensus estimate—representing a material shortfall. While adjusted EPS guidance is slightly below consensus, the GAAP miss raises concerns about financial transparency and profitability, potentially undermining confidence in the company’s ability to deliver on its long-term outlook.
AI Trade Vulnerable to Market Correction
The CNN Fear & Greed Index remains in the 'Fear' zone (38.9), and the broader market is wary of a potential 10–20% correction in the AI trade due to mixed labor data and rising Japanese yields. Salesforce, as a major AI software play, is vulnerable to a broad pullback in AI-related stocks, especially if Fed rate cut expectations are dashed by better-than-expected jobless claims.
Adoption Challenges Undermine AI Narrative
Despite strong AI momentum, partner feedback suggests 'pilot purgatory' and slow adoption, undermining the narrative of widespread enterprise AI transformation. This disconnect between leadership claims and on-the-ground realities indicates integration and execution risks, particularly as AI-native competitors gain traction and Salesforce’s rebranding strategy lacks clarity.
Regulatory Risks Loom for AI Models
Negative headlines about AI regulation, such as Steve Bannon’s push to crack down on Big Tech’s use of copyrighted data for AI training, could impact Salesforce’s AI monetization strategy. If future regulations limit data usage for AI models, Salesforce’s AI tools—especially those relying on customer data—may face legal or operational constraints, increasing compliance risk.
Nancy Pelosi And Dan Ives Pile Into The Same 8 AI Stocks — What Do They See Coming?
Nasdaq Rises 50 Points Ahead Of Next Week's Interest-Rate Decision: Greed Index Remains In 'Fear' Zone
Salesforce Inc (CRM) Q3 2026 Earnings Call Highlights: Strong Revenue Growth and AI-Driven Expansion
AstraZeneca Selects Salesforce's Agentforce Life Sciences To Power Global AI-Driven Customer Engagement
Small Caps Hit Record Highs, Nuclear Stocks Rally: What's Moving Markets Thursday?
Initial Jobless Claims Shocker; Small Caps Move on Rate Cut Prospects; 10–20% Correction Risk to AI Trade
Stocks making the biggest moves premarket: Snowflake, Salesforce, Hormel Foods, Five Below and more
Salesforce CEO Says Agentforce ARR Soared 330% YoY, Deals Jump 50%: 'Fastest-Growing Product Ever'
Salesforce's raised guidance lifts the stock but doesn't change our rating
Salesforce (CRM) Stock Analysis: What's Going On With The Enterprise Software Giant?
Salesforce Stock Rises -- Smashes EPS Forecast and Unveils Bold 2026 Outlook
Roku To Rally Around 24%? Here Are 10 Top Analyst Forecasts For Thursday
Weak jobs data, Salesforce earnings, GM's 'Silicon Valley cowboy' and more in Morning Squawk
Salesforce And Oracle Rival SAP Logs Growth Amid EU AI Cloud Launch And Higher Q3 Cloud Revenue
Overview for CRM
Price chart and key metrics will appear here.