Salesforce's Booming AI Business Leaves Stock Struggling
Salesforce's AI business is growing at an incredible rate, but its stock price hasn't kept pace. The company's Agentforce ARR has surpassed $1.5 billion, a growth of over 240% year-over-year, while the stock itself has only gained 1.65% in the same period.
The disconnect between Salesforce's AI traction and its stock performance is striking. Despite Agentforce and Data 360 ARR reaching nearly $3.9 billion, up more than 210% year over year, CRM remains modestly higher than it was a year ago, with a year-to-date decline of 6.52%, despite a 29.02% gain in the past month.
Salesforce's AI story is moving beyond experimentation, as evidenced by its report of 3.2 billion Agentic Work Units delivered in the second quarter, up 97% from the prior quarter. The company is also expanding its ecosystem around those agents through partnerships like Claudeforce with Anthropic, which brings Claude's reasoning together with Salesforce's business data, workflows, and governance.
The key question for investors at Dreamforce is whether management can show that billions of agentic tasks are translating into expanding customer spending. If they can, the stock's recent rally may turn into a sustained rerating rather than simply catching up with fundamentals.