Salesforce (CRM) Stock Forecast & Price Target

Salesforce's positive outlook is supported by significant growth in its Data 360 and AI segments, with $1.2 billion in annual recurring revenue reported for 2QFY26, including a remarkable 400% year-over-year increase in agentic AI ARR. The company is experiencing a turnaround as evidenced by a reacceleration in bookings, with expectations that net new annual order value growth will outpace annual order value growth, potentially leading to revenue acceleration within the next 12 to 18 months. Additionally, the expanding adoption of Salesforce products by top pure-play LLM providers and management's positive outlook on AI integration indicate a robust future for enterprise adoption, while the company's non-GAAP operating margin is projected to grow significantly from 17.7% in FY21 to 34.1% by FY26E.

Salesforce's stock faces significant downside risks driven by a potential decline in its premium enterprise value-to-revenue multiple, fueled by a rapid deceleration in subscription revenues and diminishing contributions from its data center to cloud transition. The company is grappling with intensified competition from major players like Microsoft and ServiceNow, as well as challenges in general work management and customer retention. Furthermore, macroeconomic headwinds and concerns over integration failures with acquisitions pose additional threats, leading to a notable underperformance compared to benchmark indices and a projected decrease in non-GAAP EPS growth rates.