Salesforce Sees Upswing with AI Pivot on Track

Salesforce shares have been down this year due to concerns about its pivot to Agentic AI, but recent results show promising signs of a turnaround. The company's Q1 FY27 revenue reached $11.13 billion, up 13.3% YoY, and Agentforce ARR hit $1.2 billion, up 205% YoY.

The bear case for Salesforce centers around its balance sheet, with noncurrent debt increasing from $10.4 billion to $39.3 billion. However, the company's aggressive buybacks and compressed multiple drive the thesis that it will reach a price target of $258.69 by the end of 2026.

A key indicator for Salesforce is its Agentforce ARR, which compounds at triple digits. If this trend continues, the company's stock could see significant gains. Additionally, the $50 billion buyback authorization will reduce the float and support the upward trajectory of the stock.