Salesforce (CRM) Stock Forecast & Price Target

Salesforce demonstrated strong financial performance, with its current remaining performance obligations (cRPO) growing 11% year-over-year in constant currency, surpassing prior guidance and reflecting robust demand for its enterprise solutions. The company's total revenue increased by 8.6% year-over-year, driven by a notable 9.5% rise in subscription revenue, particularly from the rapidly expanding Agentforce, which achieved an annual recurring revenue (ARR) of $540 million—up 330% year-over-year. Furthermore, the accelerated adoption of its AI-driven solutions like Agentforce and Data Cloud, which collectively reached over $1.4 billion in ARR, underscores Salesforce's strong position and growth trajectory within the enterprise cloud computing sector.

The negative outlook for Salesforce's stock is primarily driven by declining growth rates in key segments, with Sales Cloud growth slowing to 8.4% year-over-year compared to higher rates in both the previous quarter and last year. Additionally, the Marketing Cloud & Agentforce Commerce's growth significantly dropped to 2.0% year-over-year, well below last year’s performance of 8.5%. Furthermore, concerns about revenue guidance, operational challenges from increasing competition, and a lack of momentum in stock performance contribute to a cautious sentiment regarding the company’s future financial performance.