Salesforce Targets $60 Billion Revenue By 2030: Why Analysts See Room For Margin Expansion

Core Insights - Salesforce Inc has set a revenue target of $60 billion for fiscal 2030, indicating a strong growth trajectory and positive market sentiment [1][4] Revenue Growth and Targets - The revenue target implies a compounded annual growth rate (CAGR) of over 10% through fiscal 2030, with expectations of significant margin expansion [2][6] - The "rule of 50" target suggests a margin of approximately 40%, indicating an annual expansion of 150 basis points through fiscal 2030 [3][7] Innovation and Product Development - Salesforce's analyst day showcased a robust innovation pipeline and visibility into bookings and revenue growth, driven by both its core business and the new Agentforce initiative [3][4] - The transition to an Agentic Enterprise could unlock annual recurring revenue (ARR) of 3x to 4x, although the timing for widespread adoption remains uncertain [4][5] Market Sentiment and Analyst Perspectives - Analysts have noted that the recent revenue growth targets present a material setback to bearish expectations that Salesforce's growth would slow to GDP levels [6] - There is a consensus among analysts that Salesforce is positioned for sustainable double-digit revenue growth, supported by its product portfolio and AI execution [8] Stock Performance - Despite a year-to-date decline of 29%, Salesforce shares rose by 4.62% to $247.52 following the announcement of the new revenue target [9]