Is It Time to Buy Beaten-Down Salesforce?

Core Viewpoint - Salesforce shares have shown resilience despite slightly below-expectation revenue guidance for fiscal 2027, indicating a potential bottoming of software stocks [1] Financial Performance - Salesforce's revenue increased by 12% year over year to $11.2 billion, aligning with its guidance range and slightly above consensus estimates [4] - Adjusted earnings per share (EPS) rose 37% to $3.81, surpassing the consensus of $3.04 [4] - Subscription and support revenue grew by 11% in constant currencies to $10.68 billion, with platform sales leading growth at 37% [5] Growth Drivers - The Agentforce platform significantly contributed to growth, with annual recurring revenue (ARR) from AI agents surging 169% to $800 million [3] - Combined ARR from Agentforce and Data 360, including Informatica Cloud, soared 200% to $2.9 billion [3] - All top 10 deals included Agentforce, and Informatica was part of six of those deals [3] Future Guidance - For fiscal Q1, the company projects revenue between $11.03 billion and $11.08 billion, indicating growth of 12% to 13% [6] - Full-year revenue is expected to range from $45.8 billion to $46.2 billion, reflecting 10% to 11% growth, with adjusted EPS projected between $13.11 and $13.19 [6]