Salesforce (1CRM) AI Stock Analysis

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Salesforce

(Milan:1CRM)

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Positive Factors

Recurring Revenue and RetentionSalesforce’s subscription model is supported by strong contracted backlog, low attrition and continued customer expansion. Rising cRPO and multi-cloud adoption improve revenue visibility, while renewals and upsells can reinforce durable growth across the installed enterprise customer base.

Negative Factors

Revenue Growth DecelerationThe sharp slowdown in top-line growth weakens the company’s overall growth profile and may indicate that expansion within its mature enterprise base is becoming harder. Sustaining long-term momentum will depend on converting AI, data and newer product opportunities into durable revenue.

Salesforce (1CRM) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 175.69B
Dividend Yield: 0.78%
Average Volume (3M): 1,526
Price to Earnings (P/E): 19.8
Beta (1Y): 0.22
Revenue Growth: 4.51%
EPS Growth: 49.06%
Country: Italy
Employees: 83,334
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Salesforce Business Overview & Revenue Model

Company Description

Salesforce, Inc. is a leading provider of customer relationship management (CRM) solutions, dedicated to connecting businesses and their clientele on a global scale. At its core, the Customer 360 platform empowers organizations to create seamless, in...

Salesforce Earnings Call Summary

Earnings Call Date:Aug 26, 2026(Q2-2027)|% Change Since:12.75%|Next Earnings Date:Dec 02, 2026

Earnings Call SentimentPositive

The call presented broad, measurable commercial and operational progress across revenue, cash flow, AI/Agentforce adoption, Slack momentum and large customer wins. Management raised FY guidance and highlighted accelerating consumption metrics (cRPO, AWUs, Agentforce ARR) and improving contract economics. Challenges cited were concentrated in license revenue volatility, early-stage monetization of headless offerings, and pockets of uneven marketing recovery and adoption — but these are outweighed by the magnitude of adoption and monetization opportunities (flexible pricing, packaged agents, major contracts like the U.S. Army). Overall, highlights significantly outweigh lowlights, signaling constructive momentum as Salesforce transitions to agentic, headless and multi-surface delivery.

Positive Updates

Strong Quarterly Revenue and Subscription Performance

Q2 revenue of $11.35B, up 11% year-over-year; subscription and support revenue $10.82B, up 12% nominal (11% in constant currency), above the high end of guidance.

Negative Updates

License Revenue Headwinds and Volatility

Management noted ongoing license revenue headwinds and volatility in integration and analytics license lines, partially offsetting strength in Slack, Agentforce and Data 360.

Company Guidance

Management raised FY‑27 revenue guidance by about $300 million in constant currency (roughly $100M organic plus ~$200M expected from the anticipated Contentful and Fin closings) to $46.1–$46.4 billion (now including a ~$100M FX headwind), held non‑GAAP operating margin at ~34.3% and updated GAAP operating margin to ~20.1%, and expects operating and free cash flow to grow ~4–5% year‑over‑year; they guided Q3 revenue to $11.42–$11.50 billion (≈11–12% CC growth) with Q3 cRPO growth of ~14% YoY CC. These targets follow Q2 results of $11.35B revenue (+11% YoY), subscription & support $10.82B (+12% YoY nominal, +11% CC), cRPO $33.5B (+14% CC), and $1.1B free cash flow (+81% YoY), and lean on strong AI/consumption momentum (Agentforce ARR $1.5B, AI/data ARR near $4B, 3.2B AWUs in Q2 up 97% Q/Q, Slackbot 1M active users up 150% Q/Q, agentic calls ~6x, and A1E/A4X bookings more than doubled Q/Q).

Salesforce Risk Analysis

Salesforce disclosed 36 risk factors in its most recent earnings report. Salesforce reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Salesforce Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

IT:1CRM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRSH	86Outperform	$3.12B	16.26	21.56%	―	15.24%	―
ADBE	79Outperform	$92.12B	13.24	62.88%	―	12.03%	11.41%
SAP	77Outperform	$272.01B	29.75	17.84%	1.26%	13.45%	22.30%
NOW	73Outperform	$103.40B	73.40	11.49%	―	21.82%	-16.58%
HUBS	62Neutral	$9.62B	48.30	11.61%	―	20.06%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

IT:1CRM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1CRM	Salesforce.com	196.44	-11.99	-5.75%
ADBE	Adobe Systems Incorporated	237.60	-96.00	-28.78%
SAP	SAP SE (US)	234.10	-14.64	-5.88%
NOW	ServiceNow Inc	102.76	-67.18	-39.53%
HUBS	HubSpot, Inc.	202.88	-187.73	-48.06%
FRSH	Freshworks, Inc. Class A	12.08	0.17	1.43%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Salesforce AI Stock Analysis