Salesforce Bets on Agentforce 360: Will it Spark the Next Growth Leg?

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]