Salesforce Sales Cloud, AI Integration, And Cloud Upsells Drive Analyst Confidence In Long-Term Growth

Core Insights - BofA Securities analyst Brad Sills maintains a Buy rating on Salesforce, Inc with a price target of $350, highlighting the strong growth potential of its Sales Cloud offering [1] - Salesforce's Sales Cloud is projected to generate $7.9 billion in subscription revenue for fiscal 2026, growing at an estimated rate of 9% [1][5] - Sales Cloud accounts for 21% of total subscription revenue and has a current penetration of 10% in the global addressable market [3] Company Offerings - Salesforce has expanded its offerings from front office applications to include various horizontal and vertical industry applications [2] - Sales Cloud is priced per user per month, with different editions offering varying features, from the basic Starter Suite at $25/user/month to the advanced Einstein 1 Sales at $500/user/month [4] Growth Drivers - Sales Cloud is expected to sustain a 25% market share in the $39 billion Sales CRM industry through 2027, with Salesforce projected to capture significant incremental growth due to its integrated platform and AI innovations [7] - Upselling premium-priced Industry Cloud and Revenue Cloud are key growth drivers for Sales Cloud, with estimated average subscription price (ASP) uplifts of 15% and 12% respectively [8] Future Projections - Sills models a 5-year compound annual growth rate (CAGR) of 10% for Sales Cloud, anticipating 7.5 million subscribers and an ASP of $143 by fiscal 2026 [9] - In an upside scenario, a 5-year CAGR of 12% is projected, with an ASP of $157 driven by higher penetration of Revenue Cloud and Industry Cloud [10] Financial Outlook - Sills projects Salesforce's fiscal 2026 revenue to reach $40.31 billion, reflecting strong growth across its offerings [11]