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Salesforce (CRM) has long been a driving force in cloud computing. Founded in 1999 as a cloud-native company, it played a central role in shaping the software-as-a-service (SaaS) model and has maintained a stronghold in the customer relationship management (CRM) space ever since. And lately, the company has been busy making rapid strides to stake its claim in the next big tech frontier, agentic artificial intelligence (AI).
Last September, Salesforce rolled out Agentforce, a new AI tool designed to bring more autonomy and intelligence to business workflows. And while the company hasn’t been spared amid broader market volatility this year, Salesforce continues to earn confidence on Wall Street. In fact, Needham analysts see “sweeping innovation” in Salesforce’s pipeline and more than 50% potential upside from current levels. Plus, with CRM currently holding a consensus rating of "Strong Buy,” it’s worth taking a deeper dive into this cloud software powerhouse.
About Salesforce Stock
California-based software giant Salesforce (CRM) has been exploring the power of AI to help organizations rethink how they operate. Its new tool, Agentforce, is built to work alongside its Customer 360 platform, Data Cloud, and Einstein AI. The aim is to combine human teams and intelligent agents in a single system that supports more efficient, AI-driven customer engagement.
With a market cap of approximately $257 billion, shares of Salesforce have been in hot water this year, down 20%.
From a valuation standpoint, Salesforce is starting to look like a relative bargain. The stock currently trades at 31.57 times forward earnings and 6.70 times sales, both notably below its own five-year averages of 41.62x and 8.02x, respectively.
Digging Into Salesforce’s Q4 Performance
On Feb. 26, Salesforce delivered its fiscal 2025 fourth quarter results, offering a mixed snapshot of its performance. The company reported $9.99 billion in total revenue, reflecting a 7.6% year-over-year increase, but just shy of analysts’ expectations of $10.04 billion. Within its key subscription and support segment, the standout was the service category, which brought in $2.3 billion, marking an 8% annual gain.
The sales category also held steady, generating $2.1 billion in revenue, another 8% increase from the prior year. Despite missing top-line forecasts, on the bottom-line, Salesforce delivered adjusted EPS of $2.78, a solid 21.4% jump from a year ago and a clear beat over expectations, topping estimates by about 6.4%. During the quarter, Salesforce also unveiled the second generation of its Agentforce AI, which is now integrated with Slack to assist employees in real time.
Since October 2024, the tool has notched over 3,000 paid deals, highlighting strong early traction in the enterprise AI space. In fact, the company revealed that its Agentforce has already powered an impressive 380,000 conversations on Salesforce’s help site, with human support required in only 2% of those interactions.
Looking ahead to fiscal 2026, Salesforce is projecting steady growth, with total revenue expected to come in between $40.5 billion and $40.9 billion, marking a 7% to 8% increase from the prior year. On the earnings front, management is guiding for adjusted EPS in the range of $11.09 to $11.17.
What Do Analysts Expect for Salesforce Stock?
According to Needham, Salesforce is making waves with its Agentforce AI platform, unveiling what the investment firm calls “sweeping innovation” during a recent world tour event showcase. Analyst Scott Berg highlighted that while Agentforce is already active across five product categories, customer service dominates with 87% of current use cases.
What’s catching Wall Street’s attention, however, is Salesforce’s push to evolve Agentforce into a fully integrated platform, adding tools for scheduling, HR, and expanded multichannel functionality. Berg pointed to features like the new Testing Center and in-pilot Agent Interaction module as key steps in streamlining how businesses build, test, and scale AI agents.
So, with a “Buy” rating and a $400 price target, which suggests roughly 50% upside potential from current levels, Needham sees Salesforce at the forefront of enterprise AI transformation. Overall, Wall Street also appears highly bullish on CRM stock, with a consensus “Strong Buy” rating.
Of the 46 analysts offering recommendations, 34 advocate a “Strong Buy,” three give a “Moderate Buy,” seven advise a “Hold,” and the remaining two suggest a “Strong Sell.” The average analyst price target of $361.86 represents potential upside of 36%, while the Street-high target of $440 suggests a 65% rally from current levels.
