On Wednesday, Salesforce (NYSE: CRM) turned in stable outcomes for its fiscal 2025 fourth quarter and issued conservative steering because it appears to be like towards agentic artificial intelligence (AI) to be its subsequent large development driver. With agentic AI, software program bots (the “brokers”) can autonomously exit and full duties in your behalf with little human intervention. That growing expertise is considered as being the following large evolutionary stage of the AI revolution.
Nevertheless, Salesforce inventory has gotten off to a troublesome begin to the yr. It is down about 10% in 2025 as of this writing, and almost flat over the previous 12 months.
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So what do the software-as-as-service (SaaS) firm’s most up-to-date outcomes recommend in regards to the chance that the inventory can rebound?
Agentic AI
Salesforce is plowing ahead with agentic AI by its Agentforce providing, which it launched again in October. The AI agent resolution has seen fast uptake amongst clients, with the corporate saying it had closed 5,000 Agentforce offers, together with 3,000 paid offers, as of the top of the fiscal quarter on Jan. 31. That was up from the 1,000 offers the corporate boasted about in a mid-December replace.
By way of Agentforce, Salesforce offers its clients with a wide range of out-of-the-box AI brokers that may deal with particular duties in such areas as customer support, human sources, and technical assist. Prospects may also use low-code and no-code instruments inside the platform to create and customise their very own AI brokers. The corporate has stated should you can describe a job, Agentforce can construct an agent to deal with it.
Salesforce created Agentforce to assist increase the human labor power and improve staff’ productiveness and effectivity. It is a consumption-based product that prices $2 per interplay.
The corporate can be leaning into its partnership community. Administration says half of its Agentforce gross sales and 70% of Agentforce activations have come from its companion ecosystem. It famous that it has 127,000 system-integrated staff educated on Agentforce and greater than 1,000 expertise companions constructing and promoting brokers. It famous that clients can now use Agentforce with Alphabet‘s Gemini, and its multimodal fashions and be deployed on Google Cloud. It additionally famous that Amazon has helped it shut quite a few giant offers.
Picture supply: Getty Pictures.
As for the fiscal quarter itself, Salesforce’s income elevated by 8% yr over yr to $10 billion, which was proper on the midpoint of its steering vary of $9.9 billion to $10.1 billion. Subscription and assist income additionally rose by 8% to $9.45 billion.
Mulesoft income jumped 7%, whereas Slack income climbed by 11%. That was an acceleration in development for each in comparison with fiscal Q3. Tableau income, in the meantime, edged up by 3%.
Adjusted earnings per share (EPS) climbed 21% to $2.78. The corporate additionally generated $3.8 billion in free cash flow in the course of the quarter.
Salesforce’s present remaining efficiency obligations (cRPOs) elevated by 10% yr over yr to $30.2 billion. This can be a widespread metric utilized by SaaS firms to explain their income outlooks.
Salesforce forecast that in fiscal 2026, its income would develop by 7% to eight%, to a spread of $40.5 billion to $40.9 billion, with adjusted EPS of between $11.09 to $11.17. Administration additionally expects subscription and assist income to develop by about 8.5%. For the fiscal first quarter, it projected that its income would develop by between 6% to 7% yr over yr.
| Metric | Fiscal 2026 Q1 Steerage | Fiscal 2026 Steerage |
|---|---|---|
| Income | $9.71 billion to $9.76 billion | $40.5 billion to $40.9 billion |
| Income development | 6% to 7% | 7% to eight% |
| Adjusted EPS | $2.53 to $2.55 | $11.09 to $11.17 |
Information supply: Salesforce.
Can Salesforce’s inventory rebound?
Salesforce trades at a ahead price-to-sales a number of of underneath 7 based mostly on analysts’ estimates for its fiscal 2026, whereas its forward price-to-earnings (P/E) ratio is underneath 27, and its value/earnings-to-growth (PEG) ratio is 0.5. A optimistic PEG ratio under 1 is usually thought of to mirror an undervalued inventory.
CRM PS Ratio (Forward) information by YCharts.
That is a horny valuation if the Agentforce platform might help speed up the corporate’s income development. As a consumption platform meant to drive price financial savings and enhance productiveness for its customers, the chance for the product is big. In the meantime, Salesforce’s steering appears to be like conservative; the corporate has a superb likelihood of beating and elevating it all year long. That units the top off nicely for the remainder of the yr.
I might bounce on this main AI SaaS title, given its valuation and the chance it has in entrance of it.
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