Core Viewpoint - Salesforce, Inc. (NYSE:CRM) is gaining attention as a prominent AI stock, with TD Cowen maintaining a Buy rating and a price target of $305.00, driven by optimism surrounding the AgentForce product line [1] Group 1: Financial Performance - Salesforce reported third-quarter revenue that met expectations, while growth in current remaining performance obligations (cRPO) surpassed forecasts [1] - Fourth-quarter organic revenue and cRPO guidance are in line with market expectations, indicating a positive outlook for future performance [2] Group 2: Product and Market Dynamics - The company is experiencing strong momentum in its AgentForce product, with increased adoption reflected in accelerated new paid customer additions and higher credits utilization from existing customers [3] - Notable growth in AI annual recurring revenue (ARR) and an increase in net new paid AgentForce deals further support a bullish outlook for the company [4] Group 3: Investment Sentiment - TD Cowen's positive assessment is reinforced by a solid valuation and the overall growth potential of Salesforce's offerings in the AI space [4]

LPETTET/iStock Unreleased via Getty Images Listen below or on the go on Apple Podcasts and Spotify Netflix (NFLX) is buying Warner Brothers (0:20). Dollar General (DG), Salesforce (CRM) earnings (6:40). December Fed meeting (12:30). Meta chooses AI over metaverse (19:00). Transcript Rena Sherbill: Brian Stewart, our Director of news at Seeking Alpha. Welcome to December, 2025. Brian Stewart: Great to be here. Rena Sherbill: Great to have you talk to us. What's top of mind for you this week? Brian Ste ...

Customer relationship management giant Salesforce Inc. (NYSE:CRM)  could highlight progress of AI-related tools and recent acquisitions when the company reports third-quarter financial results on Wednesday after market close.Here are the earnings estimates, what experts are saying ahead of the report and key items to watch.Earnings EstimatesAnalysts expect Salesforce to report third-quarter revenue of $10.27 billion, up from $9.44 billion in last year's third quarter, according to data from Benzinga Pro.The ...

Core Insights - Salesforce, Inc. (NYSE:CRM) is recognized as one of the Best Wide Moat Stocks to buy, benefiting from significant customer switching costs and network effects [1] - Truist Securities has reiterated a "Buy" rating with a price target of $400, citing potential catalysts that could enhance investor sentiment [1] - The company has been labeled a value trap by some investors, but Truist believes that AI and data products will drive improved bookings in the second half of the year and better growth prospects into FY 2027 and beyond [1] - Salesforce reported strong Q2 2026 results, surpassing financial targets and achieving its 10th consecutive quarter of operating margin expansion [2] - The company's data cloud and AI annual recurring revenue exceeded $1.2 billion, reflecting a 120% year-over-year increase [2] Financial Performance - Salesforce closed H1 2026 with robust performance across revenue, margin, cash flow, and cRPO [2] - The company has shown consistent improvement in operating margins over the last ten quarters [2] Market Sentiment - In Q3 2025, Salesforce's stock faced pressure due to concerns about trade tensions affecting GDP growth and IT budgets, as well as worries regarding AI's impact on Service Cloud seats [3] - There are concerns about the slower-than-expected monetization ramp from AI-enabled offerings like AgentForce [3]

Core Insights - The third quarter of 2025 was a strong period for US equities, driven by optimism regarding the Federal Reserve's dovish stance and a boom in artificial intelligence [1] - Mar Vista U.S. Quality Strategy reported a return of +3.29% net of fees, underperforming the Russell 1000 Index and S&P 500 Index, which returned +8.00% and +8.12% respectively [1] Company Performance - Salesforce, Inc. (NYSE:CRM) experienced a one-month return of -0.88% and a 52-week decline of 16.49%, closing at $240.43 per share with a market capitalization of $228.889 billion on October 8, 2025 [2] - Concerns affecting Salesforce's stock included potential trade tensions impacting GDP growth and IT budgets, fears of AI cannibalizing Service Cloud seats, and slower-than-expected monetization from AI-enabled offerings like AgentForce [3] Hedge Fund Interest - Salesforce, Inc. ranked 16th among the 30 Most Popular Stocks Among Hedge Funds, with 121 hedge fund portfolios holding the stock at the end of Q2 2025, down from 140 in the previous quarter [4] - The company reported revenue of $10.25 billion in Q2 2026, marking a 10% year-over-year increase and 9% in constant currency [4]

Core Viewpoint - The recent layoffs at major software companies like Oracle and Salesforce signal a rapid shift in the tech industry due to the impact of AI, which is not only enhancing efficiency but also replacing jobs directly [1][3]. Group 1: Layoffs and AI Impact - Oracle has cut over 3,000 jobs globally, affecting various markets including the US, India, Canada, the Philippines, and Europe, indicating a broad and significant reduction rather than targeted cuts [1]. - Salesforce has laid off approximately 4,000 customer service personnel, as their AI platform, AgentForce, can handle nearly half of customer interactions, showcasing the efficiency and cost-saving potential of AI [1]. - The trend of layoffs is not isolated; Microsoft has laid off 15,000 employees since May, while other companies like Amazon and T-Mobile are also reducing their workforce, reflecting a broader industry contraction [3]. Group 2: Employee Concerns and Opportunities - Employees at Oracle and Salesforce express anxiety over job security and the rapid pace at which AI is replacing roles, with concerns that AI is penetrating core business functions rather than just low-skill jobs [4]. - Despite the fears of job displacement, AI is also creating new opportunities, as both Oracle and Salesforce are investing more in AI products, cloud computing, and data analytics, leading to a demand for skilled professionals who can work alongside AI [4]. - The key challenge for individuals is not whether they will be replaced by AI, but rather how to adapt and learn to collaborate with AI to enhance their value in the workforce [5][6].

Core Insights - Salesforce co-founder and CEO Marc Benioff highlighted the rapid growth of the company's AI agent technology, with over 12,000 AgentForce customers and $1.2 billion in revenue, marking a triple-digit growth rate [1][2] - The company anticipates third-quarter sales growth to slow to 8%-9%, down from 10% in the second quarter, while current remaining performance obligations rose 11% to $29.4 billion [2] - Salesforce has successfully taken government business from Palantir, with Benioff expressing confidence in the company's pricing strategy and aiming for double-digit growth rates [3][4] Company Performance - Salesforce's full-year non-GAAP operating margin guidance was raised slightly to 34.1% from 34% [2] - Despite a 24% decline in shares year-to-date, over 60% of sell-side analysts rate Salesforce stock as a Buy [4] - The company trades at an attractive 15x 2026E estimated enterprise value/free cash flow, compared to peers at 28x, indicating a 47% discount [5] Market Context - Concerns exist regarding the pace of AI demand amid a slowing US economy and fears that AI may disrupt traditional software [1][4] - Analysts believe that fears of AI negatively impacting the software industry are overblown, although Salesforce's ability to monetize AI will be crucial for its stock performance [5]

Core Insights - Salesforce Inc (NYSE:CRM) has been highlighted as a significant stock in recent analyst calls, emphasizing the importance of trusting company leadership during challenging times [1] - Despite a decent quarterly report, Salesforce shares have declined by 24% this year due to weak guidance and concerns over trade tensions and AI monetization [2] Group 1: Company Performance - For the third quarter, Salesforce expects revenue between $10.24 billion and $10.29 billion, which is below Wall Street estimates at the midpoint [2] - The company has faced pressure on its stock as investors are worried about the potential negative impacts of trade tensions and tariffs on the global economy [2] Group 2: Competitive Position - Mar Vista U.S. Quality Select Strategy expressed confidence in Salesforce's strong competitive position and deep customer relationships despite current market challenges [2] - Salesforce's newly launched generative AI-enabled chatbot, AgentForce, is designed to automate customer service tasks and significantly reduce costs compared to traditional call center solutions [2]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $10,250,000,000, representing a 10% year-over-year increase and a 9% increase in constant currency [8][46] - Non-GAAP operating margin was strong at 34.3%, with an increase of 60 basis points year-over-year [9][47] - Current Remaining Performance Obligation (CRPO) ended at $29,400,000,000, up 11% year-over-year [9][47] - Operating cash flow is expected to reach nearly $15,000,000,000, marking a significant increase from the previous quarter [9] Business Line Data and Key Metrics Changes - The AI and data product line saw a remarkable growth of 120% year-over-year [9] - Net new bookings from deals over $1,000,000 grew by 26% year-over-year, indicating strong sales momentum [8] - Subscription and support revenue grew slightly above 9% in constant currency, driven by strong execution [46] Market Data and Key Metrics Changes - Strong new business growth was observed in the U.S. and certain areas of EMEA, particularly the Netherlands and Switzerland, while the UK and Japan faced constraints [48] - Technology and communications sectors performed well, while retail, consumer goods, and public sector showed measured performance [48] Company Strategy and Development Direction - The company is focusing on the concept of the "agentic enterprise," which emphasizes the integration of AI and data capabilities into all products [10][12] - There is a strategic emphasis on expanding the Data Cloud, which is seen as critical for the success of AI agents [26][27] - The company is also expanding its presence in the public sector and launching new products like the AgenTic IT service platform [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a record year, with strong momentum and disciplined execution [45] - The company is optimistic about the future of AI and its integration into enterprise software, viewing it as a transformative opportunity [71][92] - Management highlighted the importance of customer success and operational excellence as key drivers for future growth [45][52] Other Important Information - The company has returned $2,600,000,000 to shareholders through buybacks and dividends in Q2, with a total of nearly $27,000,000,000 returned since the program began [54] - The company raised its fiscal year '26 revenue guidance to a range of $41,100,000,000 to $41,300,000, reflecting an expected growth of approximately 8.5% to 9% year-over-year [55][56] Q&A Session Summary Question: How defensible is SaaS against disruption from AI-native apps? - Management acknowledged the transformation in the software industry driven by AI, emphasizing that Salesforce has been integrating AI for over a decade and is well-positioned to extend its SaaS capabilities [63][70] Question: When will Data Cloud and Agent Force inflect the top line? - Management indicated that they are starting to harvest the benefits of investments in products and are confident in their strategy to monetize AI [72] Question: What caused the 60% increase in pilot to production conversions? - Management explained that close collaboration with customers and enhancements in product features have facilitated faster transitions from pilot to production [78][81]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 was $10,250,000,000, representing a 10% increase year over year and a 9% increase in constant currency [7][44] - Non-GAAP operating margin was strong at 34.3%, with CRPO at $29,400,000,000, up 11% year over year [7][45] - Operating cash flow is expected to reach nearly $15,000,000,000, with a guidance increase for fiscal year 2026 revenue to $41,100,000,000 to $41,300,000, reflecting growth of approximately 8.5% to 9% year over year [7][53] Business Line Data and Key Metrics Changes - AI and data product line saw a remarkable 120% year-over-year growth [7] - Net new bookings from deals over $1,000,000 grew 26% year over year, indicating strong sales momentum [7] - Subscription and support revenue grew slightly above 9% in constant currency, driven by strong execution [44][45] Market Data and Key Metrics Changes - Strong new business growth was observed in the U.S. and pockets of EMEA, particularly in The Netherlands and Switzerland, while The UK and Japan faced constraints [46] - Technology and communications sectors performed well, while retail, consumer goods, and public sector remained measured [46] Company Strategy and Development Direction - The company is focusing on the concept of the "agentic enterprise," which emphasizes the integration of AI and human collaboration to transform business operations [8][12] - Strategic priorities include delivering customer success, accelerating data and AI adoption, and maintaining a responsible capital allocation strategy [47][51] - The company is expanding its offerings in the public sector and launching a new IT service platform, AgenTeq, to enhance operational efficiency [28][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformative potential of AI and the agentic enterprise, stating that this is a pivotal moment in the industry [10][37] - The company anticipates a record year and is raising guidance based on strong performance and customer demand [7][53] - Management highlighted the importance of Data Cloud as a strategic asset for future growth, with significant customer adoption [25][24] Other Important Information - The company returned $2,600,000,000 to shareholders through buybacks and dividends in Q2, with a total of nearly $27,000,000,000 returned since the program began [52] - The company is actively pursuing acquisitions to enhance its capabilities, including recent deals with Convergence.ai and Bluebirds [51] Q&A Session Summary Question: How defensible is SaaS against disruption from AI-native apps? - Management acknowledged the transformation in the software industry driven by AI, emphasizing that Salesforce has been integrating AI for over a decade and is well-positioned to extend its SaaS offerings [60][66] Question: What caused the 60% increase in pilot to production conversions? - Management indicated that close collaboration with customers and enhancements in product features have facilitated faster transitions from pilot to production [74][76] Question: What does a production deal look like around AgentForce? - Management highlighted that successful production deals involve leveraging Data Cloud and integrating various systems to enhance customer interactions and operational efficiency [82][85]