Salesforce Stocks May Surge as AI Pivot Gains Traction

Salesforce's Agentic AI pivot is gaining traction, and its shares are down sharply from December highs. The company's Agentforce ARR compounded at a triple-digit rate in the latest quarter, setting up a compelling scenario for the rest of the year.

The stock price has been volatile this year, falling 30% year-to-date and 28% over the past year. However, July saw a significant rebound, with shares rising 12% in just one week following strong Q1 FY27 results. Revenue reached $11.13 billion, up 13% from last year, and earnings per share beat expectations by 24%, marking the fifth consecutive quarterly beat.

Agentforce ARR hit $1.2 billion, a 205% increase from last year, while management executed a $25 billion accelerated share repurchase, reducing the diluted share count to 871 million from 970 million. The bull case for Salesforce suggests that AI ARR compounds at current rates and the company's $50 billion buyback authorization reduces the float, potentially reaching a stock price of $286.