Salesforce (CRM) Stock Forecast & Price Target

Salesforce's recent performance shows a robust growth trajectory, evidenced by an 11% year-over-year increase in cRPO and an 8.6% rise in total revenue, with subscription revenue notably increasing by 9.5%. The company's Agentforce segment is a key driver, achieving $540 million in ARR, which represents a significant 330% year-over-year growth, and boasts strong customer expansion with a 50% quarterly increase in paid customers. Additionally, the ongoing momentum in AI adoption is highlighted by the combined ARR from Agentforce and Data 360 surpassing $1.4 billion, marking a 114% year-over-year increase, suggesting a solid foundation for sustained revenue growth.

Salesforce's Sales Cloud growth has shown a concerning decline, with an 8.4% year-over-year increase, lower than both the prior quarter's 9.5% and last year's 11.2%, indicating weakening demand. Additionally, the Marketing Cloud and Agentforce Commerce segments experienced a significant drop to 2.0% year-over-year growth, down from 4.4% in the previous quarter and 8.5% a year ago, highlighting challenges in driving revenue in key areas. Furthermore, the company's guidance for fiscal fourth quarter revenue is projected below consensus expectations, accompanied by multiple downside risks such as increased competition and potential further deceleration in subscription revenue, suggesting a negative outlook for Salesforce's stock performance.