Salesforce (CRM) Stock Forecast & Price Target

Salesforce's strong financial performance is evidenced by an 11% year-over-year growth in constant currency for cRPO, surpassing previously set guidance. The company reported a total revenue increase of 8.6% year-over-year, with notable subscription revenue growth of 9.5%, bolstered by a significant expansion in Agentforce ARR, which rose to $540 million, marking a 330% year-over-year increase. Furthermore, the company's increasing adoption of AI solutions is underscored by a combined ARR from Agentforce and Data Cloud that exceeded $1.4 billion, indicating robust momentum and expansion across a diverse range of sectors.

Salesforce's Sales Cloud growth has declined to 8.4% year-over-year, down from 9.5% the previous quarter and significantly lower than the 11.2% growth achieved last year, indicating a slowdown in one of its core revenue streams. Additionally, the Marketing Cloud and Agentforce Commerce segment reported a mere 2.0% year-over-year growth, falling short of prior quarters and last year's performance, which raises concerns about the company's ability to attract and retain customers in a competitive landscape. The company's guidance for fourth-quarter revenue is set below consensus expectations, coupled with a lack of anticipated improvements in operating margins, showcasing an overall trend of reduced growth potential and increasing competition that negatively affects the stock outlook.