Salesforce's Agentforce Bookings Surge: Will Adoption Drive Revenues?

Core Insights - Salesforce, Inc. (CRM) reported strong second-quarter fiscal 2026 results with revenues increasing by 10% and non-GAAP EPS rising by 13.7% year-over-year, driven by the adoption of its AI-driven platform, Agentforce [1][10] Group 1: Agentforce Performance - Agentforce has achieved over 6,000 paid deals since its launch three quarters ago, indicating robust demand for AI tools that enhance enterprise workflows [2][10] - 40% of new Agentforce bookings in the second quarter originated from existing Salesforce customers expanding their usage, showcasing strong early adoption [2][3] - There was a 60% increase in customers scaling Agentforce use quarter over quarter, reflecting confidence in the platform's value [3] Group 2: Revenue Growth Potential - The consumption-based model, along with flexible payment options like Flex Credits, is driving demand for Agentforce, which could lead to recurring revenue growth over time [4] - Annualized recurring revenues from AI and Data Cloud have reached $1.2 billion, positioning Salesforce for significant growth if Agentforce adoption continues at the current pace [5] Group 3: Competitive Landscape - Microsoft Corporation (MSFT) and ServiceNow, Inc. (NOW) are also advancing AI automation in the enterprise market, with Microsoft integrating AI features into its Dynamics 365 platform and ServiceNow rolling out industry-specific AI tools [6][7] Group 4: Valuation and Estimates - Salesforce shares have declined by 24.6% year-to-date, contrasting with the Zacks Computer – Software industry's growth of 15.3% [8] - The forward price-to-earnings ratio for Salesforce is 20.81, significantly below the industry average of 32.22, indicating potential undervaluation [11] - The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings suggests year-over-year increases of approximately 11.2% and 11.7%, respectively, with recent upward revisions in estimates [14]