Salesforce Bull Remains Confident Amidst Rising Debt

Salesforce (NYSE:CRM) shares have seen significant growth over the past month and week, rising by 27.74% and 9.47%, respectively. Despite this increase, the stock remains down 20.67% from its starting price of $263.53.

The author's investment thesis is centered around Salesforce owning the application layer where enterprise workflows live, particularly in the context of agentic AI. The company reported Q1 FY27 results on May 27, with revenue reaching $11.133 billion and EPS coming in at $3.88, exceeding consensus estimates.

Benioff stated that 'Agentic AI is the biggest growth opportunity for our customers, and for Salesforce.'

The author cites three reasons to continue buying Salesforce: the AI numbers are translating into actual ARR, cash generation is strong, and the valuation remains attractive. Agentforce ARR reached $1.2 billion, up 205% year over year, while combined Agentforce plus Data 360 ARR hit nearly $3.4 billion.

Additionally, Salesforce has a new $50 billion authorization for share repurchases and raised its dividend to $0.44 per share. The author acknowledges a risk in noncurrent debt increasing to fund the accelerated share repurchase but believes it is offset by the retired share count.