Salesforce's AI-Fueled Upsurge Sets Stage for Bullish Growth

Despite its 9.6% year-to-date decline, Salesforce is still considered a market favorite show-me story. The underlying agentic AI business is scaling faster than almost anything in enterprise software.

The company's Q2 FY27 revenue landed at $11.35 billion, up 10.83%, and non-GAAP EPS of $5.90 topped the $3.2712 consensus by 80.36%. The Agentforce and Data 360 combined ARR reached nearly $3.90 billion, up over 210% year over year, while Agentforce ARR alone crossed $1.5 billion, up over 240%.

Our analysts at 24/7 Wall St. have set a price target of $331.33 for Salesforce, which implies a 39.26% upside from the current $237.79. We rate the shares a buy with high confidence, citing the potential for Agentforce ARR to continue compounding above 100% and premium-edition attach expanding.

However, bears point to organic growth still tracking around 11% to 12%, heavy integration risk from Informatica, Contentful, and Fin, and restructuring charges that jumped to $94 million versus $4 million a year ago. Counterpoint: those pressures reflect deliberate reinvestment while free cash flow surged 81.49% and the diluted share count fell.

Salesforce's P/E of 26 is nearly identical to Microsoft's at 27, but for far less proven AI monetization at scale. This makes our CRM target look reasonable if Agentforce closes the perception gap.