Salesforce Bounces Back on Strong Agentic AI Growth

Salesforce's stock took a 25% hit this year due to investor concerns that AI would replace or diminish its market share. However, those fears may have been unfounded as the company saw significant growth thanks in part to agentic AI.

CEO Marc Benioff stated that agentic AI is 'the biggest growth opportunity for our customers,' and Salesforce has already delivered 3.8 billion Agentic Work Units to its clients, representing a 111% sequential growth rate.

The company's revenue for the fiscal 2027 first quarter rose by 13% year-over-year, with Agentforce and Data 360 annual recurring revenue surging more than 200% year-over-year.

Salesforce's current valuation is at a low P/E ratio of 21, down from its peak above 40 less than a year ago. The company's strong earnings per share growth of 52% in the first quarter suggests that its stock will become more attractive in upcoming quarters.