Salesforce (CRM) Bookings Improve, But Analysts Want More

Core Viewpoint - Salesforce, Inc. is experiencing mixed performance with an 8.6% year-over-year revenue growth in Q3, reaching $10.26 billion, slightly below expectations of $10.27 billion, leading to a Neutral rating from UBS analyst Karl Keirstead with a price target of $260.00 [1][2] Revenue Performance - Revenue for the fiscal third quarter increased by 8.6% year-over-year, totaling $10.26 billion, which was in line with expectations [1] - The company's current remaining performance obligation (cRPO) grew by 11% in Q3, indicating solid growth, but the guidance for Q4 growth is only 9%, which aligns with expectations [2] Growth Outlook - Keirstead suggests a patient approach to the stock until a clearer path to over 10% growth is visible, with management indicating that bookings are improving and subscription revenue growth is expected to ramp up in the second half of fiscal year 2027 [3] - Despite positive indicators like stronger bookings and demand for Agentforce/Data, investor sentiment in the SaaS sector requires more evidence of a return to double-digit growth [4] Valuation and Market Sentiment - Current company valuation suggests limited downside risk; however, the ongoing revenue growth rate of 8-9% raises concerns, prompting a cautious stance from analysts [4] - The potential of Salesforce's AI-powered platform, Agentforce, is acknowledged, but there are other AI stocks perceived to offer greater upside potential with less downside risk [5]