Salesforce (NYSE: CRM) is experiencing a significant surge in its AI business, with its Agentforce platform achieving an impressive annual recurring revenue of $800 million. The company reported a 10% year-over-year revenue increase for fiscal 2026, totaling $41.5 billion, while also seeing a notable rise in large deals, indicating strong enterprise demand. Despite these positive developments, Salesforce’s stock has declined over 26% this year, raising questions about the impact of AI on traditional software models.
The growth of Salesforce’s AI offerings, particularly Agentforce and Data 360, is driving a shift in its business dynamics. The company recorded a 200% year-over-year increase in ARR for its AI products, with over 60% of bookings coming from existing customers. This trend suggests that Salesforce’s integrated platform is gaining traction, as customers increasingly adopt AI capabilities alongside traditional services. The stock is currently trading at around 13 times forward earnings, which is below its historical average.
Investors may find Salesforce’s stock appealing given its modest valuation and the potential for renewed growth driven by AI solutions. As the company anticipates a revenue growth of 10% to 11% for fiscal 2027, the market may begin to reassess its outlook, making this a pivotal moment for Salesforce and its investors.
Source: nasdaq.com