Salesforce.com (CRM) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Salesforce's stock has markedly lagged peers despite showing strong profitability, as revenue growth slows and AI monetization remains early-stage. Recent M&A, including the Informatica deal, signals a deeper AI push, but Wall Street remains cautious on execution and margin impact. Agentforce's traction and AI milestones are promising, yet the market awaits proof that they can reignite topline growth and operating leverage.
Salesforce's Q1 2026 results triggered mixed market reactions, with the stock slipping into negative territory after initial gains. CRM's recent underperformance follows a strong run, reflecting investor uncertainty as the company makes an important transition. Recent profitability improvements are a major positive for long-term investors as CRM now trades at record-low multiples.
Salesforce delivered strong Q1 results, driven by robust AI adoption and impressive free cash flow, beating both revenue and earnings estimates. Salesforce sees considerable momentum with Agentforce due to growing enterprise AI adoption. The SaaS firm raised its revenue guidance, expecting 8-9% top-line growth in FY 2026.
Salesforce delivered strong Q1 results, beating revenue and EPS estimates, with robust growth in Data Cloud and Agentforce adoption. The market is undervaluing CRM's AI and data strategy, which are driving operational efficiency and significant recurring revenue growth. CRM is returning substantial value to shareholders through aggressive buybacks and a growing dividend, supported by rising free cash flow.
Salesforce, Inc. (NYSE:CRM ) Jefferies Public Technology Conference May 29, 2025 3:00 PM ET Company Participants Bill Patterson - EVP, Corporate Strategy Conference Call Participants Brent Thill - Jefferies Brent Thill Thanks, everyone, for joining Salesforce. Bill is a regular here.
Salesforce beat Q1 FY26 consensus with $9.83B revenue and $2.58 EPS, driven by strong SMB growth and healthy margins, though the stock dipped post-earnings. AI initiatives show strong traction: Agentforce secured >8,000 deals ($100M+ AOV rapidly) and combined with Data Cloud, surpassed $1B ARR, growing over 120% YoY. The $8 billion Informatica acquisition aims to bolster data capabilities, expecting accretion by early FY27, while Salesforce targets a 34% non-GAAP EBIT margin for FY26.
CRM's Q1 performance reflects the success of its go-to-market strategy and integration of gen AI into its offerings, driving traction in its product line.
Salesforce's results weren't enough to shed lingering growth fears.
Salesforce shares slumped despite topping fiscal first-quarter estimates and raising its full-year outlook due to artificial intelligence tailwinds. Salesforce's results come a day after it announced plans to buy data management company Informatica for $8 billion.
Salesforce's NYSE: CRM stock price is rebounding from the April lows, and the move is just getting started. The company is a leader in AI-assisted data management and CRM services, an industry that is still in the earliest phases of adoption.
CRM outpaces ADBE with stronger AI growth, better valuation, and steadier earnings, giving CRM the edge in cloud software stocks.