Salesforce (CRM) Signals Stable Growth Signs

Core Insights - SGA's U.S. Large Cap Growth Strategy reported a Q4 2025 portfolio return of 0.3% (Gross) and 0.2% (Net), underperforming the Russell 1000 Growth Index (1.1%) and the S&P 500 Index (2.7%) [1] - The portfolio faced significant challenges in 2025, marking the most difficult year since the firm's inception in 2003, but remains optimistic about growth potential and relative valuation [1] - The strategy is positioned to benefit from a shift away from high momentum dynamics in U.S. markets and a broadening of market leadership [1] Company Focus: Salesforce, Inc. (NYSE:CRM) - Salesforce was highlighted as a top contributor in Q4 2025, despite a one-month return of -19.51% and a 52-week loss of 40.19% [2] - As of February 9, 2026, Salesforce's stock closed at $194.03, with a market capitalization of $184.717 billion [2] - The company demonstrated growth stabilization and momentum, with subscription revenue growth and current remaining performance obligation (cRPO) exceeding guidance [3] - Management is targeting revenue acceleration over the next 12-18 months, supported by increased competitiveness in the SMB segment and the expiration of pandemic-era shelfware deals [3] - Salesforce's AI and Data Cloud offerings are gaining traction, with Agentforce annual recurring revenue growing over 300% and Data Cloud annual recurring revenue more than doubling [3] - The company's integrated front-office applications, strong brand, and high renewal rates continue to drive revenue growth, while disciplined capital allocation and share repurchases enhance shareholder returns [3] - Salesforce is well-positioned to compete in the Agentic AI era, supporting low-teens earnings growth over the next three years [3] - The portfolio maintained an average weight in Salesforce and increased the position by selling other higher multiple software holdings [3]