Salesforce's AI Business Rapidly Expands with Strong Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CRM?
Source: NASDAQ.COM
- Significant Revenue Growth: Salesforce reported fiscal 2026 revenue of $41.5 billion, reflecting a 10% year-over-year increase, demonstrating the company's sustained market appeal despite potential threats from AI to traditional SaaS models.
- Increase in Large Deals: In the fourth quarter, Salesforce saw a 26% increase in deals over $1 million and a 33% increase in deals exceeding $10 million, indicating rising enterprise demand for its solutions and further solidifying its market position.
- Success of Agentforce Platform: The Agentforce platform achieved $800 million in annual recurring revenue, up 169% year-over-year, while its combination with Data 360 led to a total of $2.9 billion in annual recurring revenue, marking a 200% increase, showcasing the company's strong performance in the AI sector.
- Optimistic Future Outlook: Salesforce expects fiscal 2027 revenue to reach between $45.8 billion and $46.2 billion, implying a year-over-year growth of 10% to 11%, indicating that while concerns about growth persist, the company's prospects for AI-driven growth remain positive.
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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: 194.990
Low
223.00
Averages
326.40
High
405.00
Current: 194.990
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
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.
Salesforce Faces AI Disruption, Stock Down 26.6%
- Revenue Growth: Salesforce reported a fiscal 2026 revenue of $41.5 billion, reflecting a 10% year-over-year increase, demonstrating the company's solid foundation in securing long-term customers and projects despite concerns over AI disrupting traditional SaaS models.
- Performance Outlook: The company anticipates fiscal 2027 revenue between $45.8 billion and $46.2 billion, implying a year-over-year growth of 10% to 11%, indicating that while growth concerns persist, there may be relief in the upcoming quarters.
- AI Product Expansion: Salesforce's Agentforce platform and Data 360 offerings have reached $2.9 billion in annual recurring revenue, up 200% year-over-year, showcasing the company's rapid expansion potential in the AI-driven market.
- Competitive Advantage: Salesforce's AI strategy appears to enhance its platform rather than disrupt it, as all top ten deals in Q4 included Agentforce, indicating customers prefer the integrated Salesforce stack over standalone AI solutions.
See More
Salesforce's AI Strategy Fuels Growth Amid Market Concerns
- Steady Revenue Growth: Salesforce's fiscal 2026 revenue increased by 10% year-over-year to $41.5 billion, and despite a 26.6% drop in stock price, the company maintains stability in long-term customers and projects, demonstrating market resilience.
- Rapid AI Product Expansion: The Agentforce platform achieved $2.9 billion in annual recurring revenue, up 200% year-over-year, with Agentforce alone contributing about $800 million, indicating strong growth potential in the AI sector.
- Customer Base Upgrade: The company is focusing on upgrading its existing customer base of 100 million seats to higher-priced AI subscriptions, with increasing demand driven by improved return on investment, facilitating broader platform adoption.
- Optimistic Future Outlook: Salesforce expects fiscal 2027 revenue to reach between $45.8 billion and $46.2 billion, implying a year-over-year growth of 10% to 11%, suggesting that while growth concerns persist, investor anxiety may ease in the coming quarters.
See More
Salesforce's AI Business Rapidly Expands with Strong Revenue Growth
- Significant Revenue Growth: Salesforce reported fiscal 2026 revenue of $41.5 billion, reflecting a 10% year-over-year increase, demonstrating the company's sustained market appeal despite potential threats from AI to traditional SaaS models.
- Increase in Large Deals: In the fourth quarter, Salesforce saw a 26% increase in deals over $1 million and a 33% increase in deals exceeding $10 million, indicating rising enterprise demand for its solutions and further solidifying its market position.
- Success of Agentforce Platform: The Agentforce platform achieved $800 million in annual recurring revenue, up 169% year-over-year, while its combination with Data 360 led to a total of $2.9 billion in annual recurring revenue, marking a 200% increase, showcasing the company's strong performance in the AI sector.
- Optimistic Future Outlook: Salesforce expects fiscal 2027 revenue to reach between $45.8 billion and $46.2 billion, implying a year-over-year growth of 10% to 11%, indicating that while concerns about growth persist, the company's prospects for AI-driven growth remain positive.
See More
Investment Opportunities Amid Tech Stock Pullback
- Salesforce Price Decline: Salesforce has dropped 23% year-to-date, and while the market doubts its ability to compete in the AI software space, its latest fiscal year shows a 10% year-over-year revenue growth, indicating resilience under pressure and a strong competitive edge due to high customer switching costs.
- Stock Buyback Program: The company announced a $50 billion stock buyback program, with a $25 billion accelerated repurchase on March 16, signaling that Salesforce believes its shares are undervalued, which could lead to significant upside potential and bolster investor confidence.
- Adobe Market Performance: Adobe has lost nearly a quarter of its value this year as investors worry about AI tools impacting demand for its professional offerings, but its integration of AI has resulted in a more than tripling of annual recurring revenue, showcasing its adaptability to market changes.
- Partnership with Nvidia: Adobe's recent partnership with Nvidia to leverage advanced computing technology is expected to enhance its product competitiveness, especially against emerging AI tools, making it an attractive opportunity for long-term investors.
See More
Salesforce and Adobe Face AI Challenges
- Salesforce Buyback Program: Salesforce announced a $50 billion share repurchase program in February and accelerated a $25 billion buyback on March 16, indicating confidence in its undervalued stock despite a 23% year-to-date decline.
- Adobe and Nvidia Partnership: Adobe's new partnership with Nvidia aims to leverage advanced computing technology to enhance its product capabilities, and despite a nearly 25% drop in stock value this year, its AI-driven annual recurring revenue has more than tripled year-over-year, showcasing its proactive approach to AI.
- Market Reaction and Competitive Pressure: Both Salesforce and Adobe are under pressure from emerging AI tools like Figma and Canva, with Salesforce's year-over-year growth rate at 10%, leading to investor concerns about future growth potential amid competitive threats.
- Long-term Investment Appeal: Despite challenges, the current valuations of Salesforce and Adobe attract long-term investors, with Salesforce trading below its decade average P/E ratio and Adobe's P/E ratio slightly above its lowest since going public, indicating potential investment opportunities amid market volatility.
See More
Investors Warned of Potential AI Infrastructure Bubble
- AI Infrastructure Bubble Warning: Bill Gurley of Benchmark cautioned investors in a CNBC interview about a potential AI infrastructure bubble, recommending a shift towards undervalued SaaS stocks, which could mitigate investment risks and enhance return potential.
- SaaS Stock Recovery Signals: NYU Professor Scott Galloway expressed that fears surrounding SaaS stocks are overblown, suggesting it is a good time to buy, which may attract more investor interest in the sector and potentially drive stock rebounds.
- ServiceNow's Sustained Growth: ServiceNow continues to grow its revenue by over 20% and has shown strong momentum in AI solutions, despite its stock price declining nearly 25% year-to-date, indicating its core position in IT and HR makes it a valuable long-term investment.
- Workday's AI Contract Value Doubling: Workday's annual contract value for AI solutions doubled to $100 million last quarter, and although its stock has fallen over 35% year-to-date, its leadership in HR and finance data and mid-term growth expectations still attract investor interest.
See More
Salesforce Faces AI Disruption, Stock Down 26.6%
- Revenue Growth: Salesforce reported a fiscal 2026 revenue of $41.5 billion, reflecting a 10% year-over-year increase, demonstrating the company's solid foundation in securing long-term customers and projects despite concerns over AI disrupting traditional SaaS models.
- Performance Outlook: The company anticipates fiscal 2027 revenue between $45.8 billion and $46.2 billion, implying a year-over-year growth of 10% to 11%, indicating that while growth concerns persist, there may be relief in the upcoming quarters.
- AI Product Expansion: Salesforce's Agentforce platform and Data 360 offerings have reached $2.9 billion in annual recurring revenue, up 200% year-over-year, showcasing the company's rapid expansion potential in the AI-driven market.
- Competitive Advantage: Salesforce's AI strategy appears to enhance its platform rather than disrupt it, as all top ten deals in Q4 included Agentforce, indicating customers prefer the integrated Salesforce stack over standalone AI solutions.
See More
Salesforce's AI Strategy Fuels Growth Amid Market Concerns
- Steady Revenue Growth: Salesforce's fiscal 2026 revenue increased by 10% year-over-year to $41.5 billion, and despite a 26.6% drop in stock price, the company maintains stability in long-term customers and projects, demonstrating market resilience.
- Rapid AI Product Expansion: The Agentforce platform achieved $2.9 billion in annual recurring revenue, up 200% year-over-year, with Agentforce alone contributing about $800 million, indicating strong growth potential in the AI sector.
- Customer Base Upgrade: The company is focusing on upgrading its existing customer base of 100 million seats to higher-priced AI subscriptions, with increasing demand driven by improved return on investment, facilitating broader platform adoption.
- Optimistic Future Outlook: Salesforce expects fiscal 2027 revenue to reach between $45.8 billion and $46.2 billion, implying a year-over-year growth of 10% to 11%, suggesting that while growth concerns persist, investor anxiety may ease in the coming quarters.
See More
Salesforce's AI Business Rapidly Expands with Strong Revenue Growth
- Significant Revenue Growth: Salesforce reported fiscal 2026 revenue of $41.5 billion, reflecting a 10% year-over-year increase, demonstrating the company's sustained market appeal despite potential threats from AI to traditional SaaS models.
- Increase in Large Deals: In the fourth quarter, Salesforce saw a 26% increase in deals over $1 million and a 33% increase in deals exceeding $10 million, indicating rising enterprise demand for its solutions and further solidifying its market position.
- Success of Agentforce Platform: The Agentforce platform achieved $800 million in annual recurring revenue, up 169% year-over-year, while its combination with Data 360 led to a total of $2.9 billion in annual recurring revenue, marking a 200% increase, showcasing the company's strong performance in the AI sector.
- Optimistic Future Outlook: Salesforce expects fiscal 2027 revenue to reach between $45.8 billion and $46.2 billion, implying a year-over-year growth of 10% to 11%, indicating that while concerns about growth persist, the company's prospects for AI-driven growth remain positive.
See More
Investment Opportunities Amid Tech Stock Pullback
- Salesforce Price Decline: Salesforce has dropped 23% year-to-date, and while the market doubts its ability to compete in the AI software space, its latest fiscal year shows a 10% year-over-year revenue growth, indicating resilience under pressure and a strong competitive edge due to high customer switching costs.
- Stock Buyback Program: The company announced a $50 billion stock buyback program, with a $25 billion accelerated repurchase on March 16, signaling that Salesforce believes its shares are undervalued, which could lead to significant upside potential and bolster investor confidence.
- Adobe Market Performance: Adobe has lost nearly a quarter of its value this year as investors worry about AI tools impacting demand for its professional offerings, but its integration of AI has resulted in a more than tripling of annual recurring revenue, showcasing its adaptability to market changes.
- Partnership with Nvidia: Adobe's recent partnership with Nvidia to leverage advanced computing technology is expected to enhance its product competitiveness, especially against emerging AI tools, making it an attractive opportunity for long-term investors.
See More
Salesforce and Adobe Face AI Challenges
- Salesforce Buyback Program: Salesforce announced a $50 billion share repurchase program in February and accelerated a $25 billion buyback on March 16, indicating confidence in its undervalued stock despite a 23% year-to-date decline.
- Adobe and Nvidia Partnership: Adobe's new partnership with Nvidia aims to leverage advanced computing technology to enhance its product capabilities, and despite a nearly 25% drop in stock value this year, its AI-driven annual recurring revenue has more than tripled year-over-year, showcasing its proactive approach to AI.
- Market Reaction and Competitive Pressure: Both Salesforce and Adobe are under pressure from emerging AI tools like Figma and Canva, with Salesforce's year-over-year growth rate at 10%, leading to investor concerns about future growth potential amid competitive threats.
- Long-term Investment Appeal: Despite challenges, the current valuations of Salesforce and Adobe attract long-term investors, with Salesforce trading below its decade average P/E ratio and Adobe's P/E ratio slightly above its lowest since going public, indicating potential investment opportunities amid market volatility.
See More
Investors Warned of Potential AI Infrastructure Bubble
- AI Infrastructure Bubble Warning: Bill Gurley of Benchmark cautioned investors in a CNBC interview about a potential AI infrastructure bubble, recommending a shift towards undervalued SaaS stocks, which could mitigate investment risks and enhance return potential.
- SaaS Stock Recovery Signals: NYU Professor Scott Galloway expressed that fears surrounding SaaS stocks are overblown, suggesting it is a good time to buy, which may attract more investor interest in the sector and potentially drive stock rebounds.
- ServiceNow's Sustained Growth: ServiceNow continues to grow its revenue by over 20% and has shown strong momentum in AI solutions, despite its stock price declining nearly 25% year-to-date, indicating its core position in IT and HR makes it a valuable long-term investment.
- Workday's AI Contract Value Doubling: Workday's annual contract value for AI solutions doubled to $100 million last quarter, and although its stock has fallen over 35% year-to-date, its leadership in HR and finance data and mid-term growth expectations still attract investor interest.
See More
