So what's your read on Dream Force and Agent Force. Is it being adopted. Hey, Caroline, great to be here.Thanks for having me. So I'm here in San Francisco at Dreamforce, and I will tell you that there's a lot of talk about the agenda at Enterprise and what that means for customers. And what we saw yesterday was exactly what, with all due respect to Brody, we're talking about the need to show real customer adoption with real recognizable brands, talking about real business results.And I think what we've see ...

Summary of the Conference Call Company and Industry - The conference call primarily discusses **Salesforce** and its innovative product **Agent Force**, which is positioned within the broader context of the **AI and CRM industry**. Core Points and Arguments 1. **Growth of Agent Force**: Agent Force has rapidly evolved from an idea to the fastest-growing product launched by Salesforce, handling over **1.5 million customer service requests** [6][2][1]. 2. **Human-AI Collaboration**: The focus is on creating an "agentic enterprise" where AI and humans work together to enhance customer success, emphasizing that AI should elevate human capabilities rather than replace them [7][6]. 3. **Data as Foundation**: The foundation of Salesforce's strategy is centered around **Data 360**, which integrates various data sources to create a unified customer record, essential for delivering personalized experiences [18][25]. 4. **Agent Force's Role**: Agent Force is embedded within the Salesforce platform, providing immediate access to data and applications, which simplifies the integration process for businesses [30][31]. 5. **Learning from Customers**: Salesforce has actively engaged with over **12,000 customers** to refine Agent Force, learning from their experiences and challenges in deploying AI solutions [21][24]. 6. **Challenges with LLMs**: The limitations of large language models (LLMs) in business contexts were highlighted, emphasizing the need for deterministic execution alongside probabilistic reasoning [59][39]. 7. **Intelligent Context for Unstructured Data**: Improvements in handling unstructured data have led to a significant increase in accuracy for document processing, enhancing the utility of AI in business applications [40][42]. 8. **Agentic Enterprise Opportunity**: The call emphasized the unprecedented opportunity for companies to transform into agentic enterprises, leveraging AI to drive productivity, reduce costs, and enhance customer satisfaction [58][59]. 9. **Sales Strategy**: Salesforce has developed a playbook to help customers transition to agentic enterprises, focusing on industry-specific solutions and gradual implementation [60][61]. 10. **Flexible Pricing Models**: Salesforce offers various pricing models, including seat-based licenses and consumption-based options, to accommodate different customer needs and reduce barriers to adoption [66][67]. Other Important Content - **Customer Engagement**: The importance of customer feedback in shaping product development was emphasized, with a commitment to listening and responding to customer needs [51][52]. - **Future Vision**: The executives expressed excitement about the future of Salesforce and the potential of AI to revolutionize customer interactions and business processes [50][58]. - **Integration of Applications**: All Salesforce applications are now fully integrated with Agent Force, enhancing the overall functionality and user experience [46][47]. This summary captures the key insights and developments discussed during the conference call, highlighting Salesforce's strategic direction and the transformative potential of Agent Force within the CRM and AI landscape.

AI Impact on Application Software - AI is a disruptive force but its impact on application software markets may take time due to the precise and integrated nature of business software [2][3] - AI technology may not be a great fit for business software due to the need for precise results, unlike consumer applications where there is more tolerance for errors [2][9] - The benefit of AI is clear in areas like data aggregation (Snowflake) and application observation (Datadog) [3] - Application software companies are talking about AI, but the impact will be slow [5] Salesforce's Situation - Salesforce's underperformance is attributed to betting on Agent Force before it was ready and neglecting its core business [6][7][10] - The challenges faced by Salesforce are due to both the company's premature investment in Agent Force and corporate America's lack of readiness for the technology [8] - Changing business software is complicated, infrequent, and requires high accuracy, which current AI software cannot guarantee [8][9] Competitive Landscape - The differentiation in application software is currently between companies with strong core businesses (Service Now) and those without (Salesforce) [5] - Service Now's stock has performed better due to its continued execution in its core business [6]

Growth & Revenue - Salesforce expects a gradual revenue inflection in 12-18 months, committed to profitable growth[24] - The company is confident in reaccelerating growth, aiming for a return to double-digit growth[28] - FY26 revenue guidance is at the high-end of $41.1B to $41.3B[28] - The company targets over $60B in revenue for FY30, excluding Informatica, with a 10%+ CAGR from FY26-FY30[147] - Data 360 + AI ARR reached over $1.2B in Q2 FY26, showing 120% year-over-year growth[68] - Agentic AI ARR reached $440M in Q2 FY26, with a growth of +400% year-over-year[70] Profitability & Efficiency - The company is on track to nearly double operating margins in five years, reaching 34.1% by FY26E[106] - The company expects a significant free cash flow expansion, targeting $14B in FY26[130] - Diluted share count is declining by (1%) year-over-year on average since the buyback program[132] Capital Allocation - The company expects an approximately 50% step-up in repurchases in 2H'26 vs 1H'26, returning 80%+ of FCF[133]

Core Insights - Salesforce has launched the Agentforce 360 platform, aiming to unify human and AI workflows across various business functions, marking a significant step in its AI strategy [1] - The platform builds on previous Agentforce releases and integrates core products like Data Cloud, Customer 360, and Slack into a single AI-driven system [1] Adoption and Growth - In Q2 of fiscal 2026, there was a 60% increase in customers transitioning from pilot projects to full production, with notable enterprises like FedEx, Reddit, and Under Armour leveraging Agentforce for improved operations and sales engagement [2] - Annual recurring revenues from AI and Data Cloud reached $1.2 billion, reflecting a 120% year-over-year increase, indicating strong adoption and growth potential [3] Pricing and Revenue Model - Salesforce introduced a new pricing model called flex credits, which now accounts for approximately 80% of Agentforce bookings, enhancing the scalability of recurring revenues [3] - This pricing strategy is expected to support Salesforce's top-line growth over time [3] Future Outlook - Sustained adoption of Agentforce could signal the beginning of a new growth cycle for Salesforce, with Zacks Consensus Estimates projecting revenue increases of 8.8% and 9.0% for fiscal 2026 and 2027, respectively [4] Competitive Landscape - Competitors like Microsoft and ServiceNow are also advancing AI automation in the enterprise market, with Microsoft integrating AI features into Dynamics 365 and ServiceNow deploying industry-specific AI tools [5][6] Valuation Metrics - Salesforce shares have declined by 28.1% year-to-date, contrasting with a 20.6% growth in the Zacks Computer – Software industry [7] - The company trades at a forward price-to-earnings ratio of 20.28, significantly lower than the industry average of 33.22 [10] Earnings Estimates - The Zacks Consensus Estimate for Salesforce's fiscal 2026 and 2027 earnings suggests year-over-year increases of approximately 11.3% and 11.5%, respectively, with recent revisions indicating upward adjustments for fiscal 2026 and downward for fiscal 2027 [13]

Core Insights - Salesforce plans to invest $15 billion in San Francisco over the next five years to enhance the city's position in artificial intelligence [1][2] Investment Details - The investment aims to advance AI innovation, create jobs, and support local communities [2] - A new hub on Salesforce's San Francisco campus will focus on workforce development and training [4] - Additional commitments include a $100 million investment in UCSF Benioff Children's Hospital and a $39 million investment for AI education in local school districts [5] Economic Impact - The upcoming Dreamforce conference is expected to attract nearly 50,000 attendees, generating $130 million in revenue for San Francisco and creating 35,000 local jobs [3] AI Implementation - Salesforce is promoting "AI agents" that automate tasks such as responding to customer inquiries and generating marketing materials [7] - The company has reduced support roles from 9,000 to 5,000 due to AI automation, with AI handling 30% to 50% of the company's work [8] Industry Context - The Brookings Institution has identified the San Francisco and San Jose areas as "superstars" in AI readiness, highlighting the need to address potential job displacement due to automation [9]

Core Insights - The podcast discusses the evolution of technology and its impact on businesses, particularly focusing on the identity security fabric and the agentic revolution in the context of cloud computing and AI [10][14][22]. Company Insights - Octa, co-founded by Todd McKinnon, aims to revolutionize identity management in the cloud, emphasizing the importance of a unified identity security fabric that consolidates various identity solutions [14][36][41]. - The company is experiencing momentum as it aligns with the latest technological shifts, particularly the integration of AI and automation in enterprise processes [20][46]. - Octa's strategy focuses on providing comprehensive identity solutions that enhance security and control while enabling innovation across organizations [22][27][39]. Industry Insights - The current technological landscape is characterized by rapid innovation, with AI and cloud computing being pivotal in transforming business operations [10][12][21]. - Companies are increasingly seeking integrated solutions that address security concerns while allowing flexibility in choosing innovative technologies from various vendors [24][25][27]. - The cybersecurity industry is investing heavily, with $200 billion spent annually, highlighting the ongoing challenges of identity-based attacks and the need for robust identity management systems [22][55][56].

Core Viewpoint - A competitive landscape is emerging in the enterprise software market, particularly between Salesforce and ServiceNow, as Salesforce aims to enhance its AI capabilities and revenue growth through new product offerings and strategic partnerships [1][3]. Group 1: Salesforce's AI Strategy - Salesforce is focusing on increasing the adoption of AI products among enterprise customers, leveraging its acquisition of Slack Technologies and introducing the Agentforce 360 platform for building AI agents [2][3]. - The introduction of new Slackbots as personal AI companions and an expanded partnership with OpenAI to integrate Agentforce apps into ChatGPT are key components of Salesforce's AI strategy [3][4]. Group 2: Product Developments - At the Dreamforce 2025 conference, Salesforce evolved its Customer 360 into Agentforce 360, positioning itself as an AI orchestration layer for enterprises, which overlaps with ServiceNow's automation and workflow solutions [4][6]. - New products such as Agentforce Voice and Agentforce Vibes were unveiled, allowing for natural communication with customers and enabling users to build applications using natural language [5]. Group 3: Market Performance and Stock Analysis - Salesforce stock rose nearly 1% to $241.51 in early trading, despite a 3.6% decline the previous day and a 27% drop in 2025 [4][10]. - The stock currently holds a sub-par Composite Rating of 61 out of 99 and an Accumulation/Distribution Rating of D-plus, indicating weak institutional buying [8]. Group 4: Competitive Landscape - The competition between Salesforce and ServiceNow is intensifying as both companies focus on workflow automation, data context, and AI agent deployment [4][6]. - Salesforce's recent acquisition of Informatica for $8 billion is part of its strategy to enhance its AI capabilities and compete more effectively in the market [7].

Core Insights - Salesforce (CRM) and Anthropic have expanded their strategic partnership to enhance enterprise-grade AI solutions for regulated and data-sensitive industries [1] Group 1: Partnership Expansion - The partnership introduces three new major initiatives, including Anthropic's Claude as a foundational model for Salesforce's Agentforce 360 Platform [1] - Collaboration will focus on developing industry-specific AI solutions for regulated sectors, starting with financial services [1] Group 2: Integration and User Experience - Salesforce and Anthropic are integrating Claude with Slack to provide users with advanced AI experiences within their preferred work applications [1] - Plans are in place to incorporate Agentforce 360 into Claude, further enhancing the functionality and user experience [1]

Group 1: Company Overview - RIT Capital Partners holds $34,689,623 worth of Salesforce, Inc. shares, representing 4.35% of its portfolio, indicating confidence in the company's potential [1] - Salesforce continues to demonstrate its dominance in AI-driven CRM technology, focusing on embedding generative AI across its customer platforms [4] Group 2: Cybersecurity Incident - A cybercriminal group, Scattered LAPSUS$ Hunters, allegedly stole nearly one billion records from companies using Salesforce's software, although Salesforce reported no breach of its own systems [2] - The incident highlights ongoing cybersecurity challenges for enterprise cloud providers, with the group exploiting "vishing" techniques to target Salesforce customers' IT help desks [3] Group 3: Product and Strategic Developments - Salesforce offers a range of products like Data Cloud, Slack, Agentforce, and industry-specific AI platforms, enhancing its customer relationship management and AI-driven business solutions globally [5] - The company has formed a strategic partnership with Perficient to develop "agentic enterprises," enhancing data-driven decision-making [4]