In today’s artificial intelligence (AI) arena, agentic platforms are becoming the new operating systems for enterprise growth, and Salesforce (CRM) is not watching from the sidelines. The customer relationship management (CRM) giant is back in the spotlight as it has unveiled Agentforce 3, an upgraded version of its AI agent platform, designed to give enterprises greater control and visibility as adoption rapidly grows. 

The latest update introduces a new Command Center and support for the Model Context Protocol (MCP), enabling seamless integration with services like Amazon’s (AMZN) Bedrock, Alphabet’s (GOOGL) Google Cloud, PayPal (PYPL), and Box (BOX). Starting in July, Agentforce will support additional large language models, including Anthropic’s Claude, with Google’s Gemini to follow later in 2025 for more customizable AI solutions.

As Salesforce continues to double down on innovation, is now the moment to lean in, or should investors stay on the sidelines, buckled in for the next move?

About Salesforce Stock

Incorporated in 1999, San Francisco-based Salesforce (CRM) is a leading global provider of cloud-based CRM software. Its market cap stands at $191.7 billion, reflecting its status as one of the most valuable enterprise software companies globally. With its comprehensive platform, innovative technology, and scalable business model, Salesforce remains at the forefront of enterprise digital transformation.

Salesforce’s shares have struggled in 2025, declining 19.9% on a YTD basis, largely due to investor worries over the timing and profitability of its ambitious AI push. Moreover, cautious enterprise spending amid macroeconomic uncertainty and competition from established cloud providers has contributed to the decline. Still, zoom out, and it’s up 11% over the past 52 weeks, a reminder of its longer-term resilience.

Salesforce’s Q1 Results Surpassed Projections

Salesforce kicked off its fiscal 2026, releasing a solid Q1 earnings report on May 28, generating $9.8 billion in revenue, up 8% year over year and edging past the Street’s expectations. Subscription and support revenues mirrored this growth, also climbing 8%, while the company’s remaining performance obligations stood at $29.6 billion, signaling solid future bookings.

Profitability metrics were robust, with non-GAAP operating margin hitting 32.3%. Operating cash flow and free cash flow each rose 4% annually, totaling $6.5 billion and $6.3 billion, respectively. On the earnings front, non-GAAP EPS amounted to $2.58, up from $2.44 a year ago and exceeding projections. 

AI and data continued to power momentum as annual recurring revenue from Data Cloud and AI surpassed $1 billion, growing over 120% YoY, and nearly 60% of the top 100 deals included AI and Data Cloud solutions. The Agentforce platform has closed more than 8,000 deals since its introduction, of which half are paid, reflecting increasing traction.

Buoyed by this performance, Salesforce’s management raised fiscal 2026 revenue guidance to $41 billion to $41.3 billion range, and affirmed its non-GAAP operating margin target of 34%, as well as a 10% to 11% growth range in operating cash flow. The quarter showcased solid fundamentals, balanced growth, operational efficiency, and mounting AI-driven enterprise demand.

Analysts remain optimistic on Salesforce, projecting its EPS to surge by 8.4% to around $8.55 for fiscal 2026, and grow by another 13.1% to $9.67 in fiscal 2027.

What Do Analysts Expect for Salesforce Stock?

CRM stock has a consensus “Strong Buy” rating overall. Of the 49 analysts covering the stock, 35 advise a “Strong Buy,” three suggest a “Moderate Buy,” nine analysts are on the sidelines, giving it a “Hold” rating, and two rate it as a “Strong Sell.”

The average analyst price target for CRM is $354.93, indicating potential upside of 30.9%. The Street-high target price of $440 suggests that the stock could rally as much as 62.3%.