Salesforce Q1 2027 Results Show Agentforce Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: seekingalpha
- Strong Agentforce Growth: Salesforce's Agentforce achieved $1.2 billion in annual recurring revenue (ARR) in Q1, growing 205% year-over-year, significantly exceeding the $900 million estimate, indicating robust market performance and potential for long-term growth.
- Increased Consumption Momentum: The quarter saw 1.6 billion Agentic Work Units (AWUs) consumed, up 111% quarter-over-quarter, showcasing a marked acceleration in demand for new products compared to previous quarters, reflecting strong customer interest.
- Guidance Adjustments: Management raised FY27 revenue guidance by $50 million to a range of $45.9 billion to $46.2 billion, although free cash flow growth expectations were lowered from 9-10% to 4-5%, indicating a cautious outlook on future financial performance.
- Positive Market Reaction: Salesforce shares rose 2% in early Thursday trading, reflecting investor optimism following the earnings report, while competitors like ServiceNow and Oracle also saw stock price increases, suggesting a broader positive sentiment in the industry.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 176.170
Low
223.00
Averages
326.40
High
405.00
Current: 176.170
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a customer relationship management (CRM) technology company. Its artificial intelligence (AI) powered Agentforce 360 Platform offers sales, service, marketing, commerce, collaboration, data management, integration, analytics, and information technology (IT) service solutions. It enables customers to build and deploy digital labor for employees and customers, leveraging autonomous AI agents across business functions. Its service offerings include Agentforce Sales, Agentforce Service, Agentforce 360 Platform, Slack and Others. The Agentforce Sales provides sales capabilities and tools built for organizations across prospecting, sales engagement, team collaboration, sales analytics and AI, sales programs, sales performance, partner management, and revenue and orders. The Agentforce Service provides field service solutions that enable companies to connect service agents, dispatchers and mobile employees through platform to schedule, dispatch and manage jobs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth: Salesforce reported Q1 revenue of $11.13 billion for Fiscal 2027, slightly exceeding analyst expectations of $11.05 billion, with a year-over-year increase of 13%, indicating potential in the AI sector.
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- Positive Market Reaction: Based on the afternoon stock prices from May 27, 2026, the implementation of this buyback plan is likely to drive stock prices up in the short term, boosting investor confidence and attracting more capital inflow.
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- Unique Market Position: A new report identifies a company dubbed an 'Indispensable Monopoly' that provides critical technology to Nvidia and Intel, underscoring its significance and demand in the semiconductor industry.
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- Diverse Trading Strategies: While some traders opted to hedge their bullish positions with spreads, significant notional trades included multi-million-dollar sales of 90-strike calls, showcasing optimism about short-term software stock performance.
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