Salesforce ( (CRM) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Salesforce shares are down nearly 30% year‑to‑date, sharply underperforming the S&P 500, as investors fret about slowing growth and rising AI competition. Yet the company just posted 12% revenue growth to $11.2 billion in Q4 2026 and a 16% jump in current remaining performance obligations, suggesting demand is still healthy and could reaccelerate in the second half of Fiscal 2027.
The core of the growth story is Salesforce’s AI platform, Agentforce, and its Data Cloud, whose combined annual recurring revenue has surged past $2.9 billion with triple‑digit growth. Around 60% of bookings are from existing customers and 75% of top deals include both products, pointing to deepening adoption even as some traders worry that AI bets like Agentforce and the upcoming Agent Albert may take time to prove themselves.
Salesforce argues its advantage lies in being embedded in enterprise workflows and data, making it harder for do‑it‑yourself AI agents or point solutions to displace it, especially when scaled governance and security are required. Slack is emerging as a key interface, with Salesforce turning Slackbot into a context‑aware assistant and exploring outcome‑based pricing tied to leads or completed workflows, which could strengthen the return‑on‑investment case.
Despite execution concerns and a “Sell” technical signal, valuation has turned compelling: the stock trades around 24x forward earnings and 11.6x price‑to‑operating cash flow, both well below sector medians. One valuation framework pegs fair value near $310 a share, implying roughly 63% upside, while Wall Street maintains a Moderate Buy rating with an average 12‑month target of about $261, or nearly 40% upside from recent levels.
Recent volatility reflects mixed sentiment as some investors question whether Salesforce can fully capitalize on AI before competitors. However, major deployments such as Unisys rolling out Agentforce 360 across more than 120 countries, along with BTIG and other firms reiterating Buy ratings, reinforce the view that Salesforce remains a deeply entrenched, AI‑enabled software leader whose current stock weakness may offer a long‑term entry point for risk‑tolerant investors.