CRM's Informatica integration boosts AI and data ARR, expanding Data 360 and Agentforce capabilities, and opening new cross-selling opportunities.
CRM's 5.8% pullback reflects broad software concerns, but Agentforce's growth, revenue acceleration and a discounted valuation support holding the stock.
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Zacks.com users have recently been watching Salesforce (CRM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
CRM's Data 360 momentum, AI-driven ARR growth and Informatica synergies are likely to support stronger fiscal 2027 revenue growth as customer demand expands.
Salesforce (NYSE:CRM) and ServiceNow (NYSE:NOW) stocks are both higher this morning, after Guggenheim upgraded the software staples to "buy," from "neutral," arguing that recent weakness has created attractive entry points.
Diane King Hall discusses this morning's top moving stocks at the opening bell, pointing to Phillip Securities downgrading Salesforce (CRM) and Adobe (ADBE). Arete also downgraded CrowdStrike (CRWD) to neutral from buy with a $730 price target.
Top software stocks have slumped this year amid the lingering concerns that artificial intelligence tools by companies like OpenAI and Anthropic will hurt their revenue growth in the long term. ServiceNow (NOW) stock is down by 35% this year, while Salesforce (CRM), Workday (WDAY), and Adobe (ADBE) have fallen by over 40%.
After initiating coverage in February 2026, CRM's stock is down by approximately 15%. Especially after the release of Q1-27 earnings, I view the opportunity as even more compelling today. Fears that Salesforce is about to get disrupted by artificial intelligence have become completely overblown, with the stock now trading at a free cash flow yield of ~11.2%. Agentforce and Slack increased revenue by 43% in Q1 '27, a meaningful acceleration versus the 14% and 37% reported in Q1 '26 and Q4 '26, respectively.
Salesforce has declined 33% since my last coverage, underperforming the benchmark's 13% gain. I maintain a strong buy rating on CRM, citing undervaluation and robust fundamentals despite AI-driven uncertainty. CRM continues to deliver above-market margins and a compelling bottom-line growth story.
Salesforce (CRM) reported earnings 30 days ago. What's next for the stock?