Industry Outlook - The S&P 500 Information Technology Index has declined by -1.75% year to date and -2.53% over the past month, indicating a challenging outlook for tech stocks in 2026, although not all major sector names are affected [1] - There is a prevailing optimism around AI, but experts caution that 2026 will focus on the proof of AI's return on investment, particularly for hyperscalers that have been investing heavily [2] - The market is expected to be "fine" in 2026, with positive results but likely unable to match the significant tech gains seen in previous years [3] Company-Specific Insights - Palantir has shown a one-year performance of 162.95%, but its stock may be losing appeal as it trades at over 100 times its revenue, raising concerns about its valuation amidst slowing growth [5][6] - Apple has a one-year performance of 9.37%, but faces challenges such as a 3.6% year-over-year decline in sales from China and high operating expenses, leading to a bearish outlook with shares potentially sliding to around $200 in 2026 [9][10] - Salesforce has experienced a one-year performance decline of -18.03% and is facing enterprise spending pressures, with a notable slowdown in Sales Cloud growth to 8.4% year-over-year [11][14] Investment Strategy - Investors are advised to consider selling high-valued, long-duration AI stocks with weak cash flow, as these stocks may not withstand market corrections if AI adoption does not meet expectations [6][15] - The technology sector is expected to undergo a consolidation phase in 2026, with a focus on companies that demonstrate visible AI revenue, strong cash flow, and reasonable valuations [4][17] - High-quality businesses like Apple, Salesforce, and Palantir may struggle if growth slows, suggesting that trimming or selling some technology names could be a prudent strategy for investors [18]

Core Insights - Salesforce, Inc. (CRM) is focusing on Data 360, previously known as Data Cloud, to stimulate growth as revenue expansion has slowed to single digits, with year-over-year revenue increases of 7.6%, 9.8%, and 8.6% in the first three quarters of fiscal 2026 [1][5] Group 1: Data 360 Strategy - Data 360 is central to Salesforce's strategy to address slowing top-line growth, combining various data tools into a unified offering to help companies manage and activate their data in real time [2] - The integration of Data 360 with other tools like Agentforce and Mulesoft is enabling enterprises to analyze data and apply AI across operations, potentially driving higher-value contracts for Salesforce [3] Group 2: Financial Performance - Data 360 and Agentforce generated $1.4 billion in recurring revenues in Q3 of fiscal 2026, marking a 114% year-over-year increase, with expectations that the data-related business could reach around $10 billion annually by fiscal 2027 [4] - The Zacks Consensus Estimate predicts revenue growth of 9.5% and 11% for fiscal 2026 and 2027, respectively, indicating a potential path for Salesforce to reaccelerate growth [5] Group 3: Competitive Landscape - Salesforce faces increased competition from Microsoft Corporation (MSFT) and Snowflake Inc. (SNOW) in the data cloud sector, with Microsoft leveraging its Azure Data platform and Snowflake focusing solely on data management [6][7][8] Group 4: Valuation and Estimates - Salesforce shares have decreased by 19.8% over the past year, contrasting with the Zacks Computer – Software industry's growth of 10.5% [9] - The company trades at a forward price-to-earnings ratio of 20.07, significantly lower than the industry average of 28.31 [13] - The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings suggests year-over-year increases of approximately 15.3% and 10.4%, respectively, with upward revisions in estimates over the past 30 days [16]

Key Points Salesforce topped estimates on the bottom line and raised its guidance. Its Agentforce AI platform is gaining traction. 2026 could be a big year for AI software stocks. 10 stocks we like better than Salesforce › Shares of Salesforce (NYSE: CRM) were among the winners last month as the software-as-a-service (SaaS) giant beat expectations on the bottom line in its third-quarter earnings report and as it raised its guidance. Salesforce also touted strong backlog growth and the continued ...

Core Insights - ServiceNow (NOW) is actively expanding its portfolio through multiple acquisitions, including Logik.io, data.world, and Moveworks, enhancing its capabilities in AI-powered solutions and enterprise data governance [1] - The company has crossed a significant milestone with its Security and Risk business, achieving over $1 billion in annual contract value in Q3 2025 [2] - The acquisition of Veza strengthens NOW's security offerings by providing advanced identity governance capabilities, which will integrate with ServiceNow's existing workflows and AI systems [3] - ServiceNow's acquisition of Armis for $7.75 billion enhances its security portfolio, particularly in cyber exposure management, and is expected to drive AI adoption [4] - The company has raised its subscription revenue guidance for 2025 to between $12.835 billion and $12.845 billion, indicating a 20% growth on a non-GAAP constant currency basis [5] Financial Performance - ServiceNow's subscription revenue growth is projected to slow to 20% in 2025, down from 23% in 2024, due to tightening budgets in U.S. federal agencies [6] - The company's share price has decreased by 27.4% over the past year, underperforming the broader Zacks Computer and Technology sector, which returned 26.2% [11] - The forward 12-month price/sales ratio for ServiceNow is 12.01X, significantly higher than the sector average of 7.31X, indicating that the stock may be overvalued [14] Competitive Landscape - ServiceNow faces strong competition from Atlassian and Salesforce, both of which are enhancing their offerings in enterprise collaboration and AI capabilities [7][9] - Atlassian is focusing on subscription-based solutions and has seen significant enterprise penetration, with over 500 customers spending more than $1 million annually [8] - Salesforce reported a 10% year-over-year increase in subscription and support revenues, driven by its AI products, indicating robust growth in its cloud business [10]

Salesforce, Inc. (NYSE:CRM) is one of the AI Stocks in the Spotlight for Investors. On December 17, BTIG initiated coverage on the stock with a “Buy” rating and a price target of $335.00. Firm analysts see upside on Agentforce momentum, an improving narrative, and underestimated execution. Having helped pioneer the SaaS model nearly three decades ago, Salesforce is once again confronting a structural shift brought by artificial intelligence. By doing so, it aims to secure a credible second act. The firm ...

Core Insights - Salesforce, Inc. (NYSE:CRM) is recognized as a top AI and technology stock by hedge funds, with Morgan Stanley adjusting its price target to $398 from $405 while maintaining an "Overweight" rating following strong earnings [1][2]. Financial Performance - For Q3 FY 2025, Salesforce reported revenue of $10.3 billion, marking a 9% year-over-year increase and an 8% increase in constant currency, driven by growth in subscription and support revenues [2]. - The company's net income for Q3 FY 2025 was $2,086 million, up from $1,527 million in Q3 FY 2024, with key products like Agentforce and Data 360 contributing to this growth [3]. - Salesforce raised its FY 2026 revenue guidance to between $41.45 billion and $41.55 billion, with a strong cRPO of $29.4 billion, reflecting an 11% year-over-year increase, indicating a robust future revenue pipeline [3]. Market Position - Salesforce specializes in customer relationship management technology, connecting companies with their customers, and is considered a significant player in the AI and technology sectors [4].

Investment Rating - The investment rating for Salesforce (CRM.N) is "Outperform" [5] Core Insights - Salesforce reported a revenue of $10.26 billion for Q3 2025 (FY2026 Q3), a year-on-year increase of 9%, driven by the performance of Agentforce, Data 360, and Agentforce for Sales & Service [1][7] - The company achieved a GAAP net profit of $2.086 billion, exceeding expectations of $1.581 billion, with a non-GAAP operating margin increase of 240 basis points to 35.5% [1][7] - Remaining performance obligations (CRPO) reached $29.4 billion, up 11% year-on-year, indicating strong pipeline generation [2] - The annual revenue guidance for FY2026 has been raised to $41.15–$41.25 billion, reflecting a growth of approximately 9% [3] Summary by Sections Financial Performance - For Q3 2025, Salesforce's revenue was $10.26 billion, a 9% increase year-on-year, aligning closely with expectations [1][7] - The GAAP net profit was $2.086 billion, surpassing the forecast of $1.581 billion, with significant improvements in profit margins [1][7] - Operating cash flow reached $2.3 billion, a 70% increase year-on-year, while free cash flow was $2.2 billion, up 22% [1] Growth Drivers - The current remaining performance obligations (CRPO) reached $29.4 billion, an 11% increase year-on-year, marking one of the largest pipeline generation quarters in recent years [2] - The annual recurring revenue (ARR) for Agentforce and Data reached nearly $1.4 billion, with Agentforce's ARR growing by 330% year-on-year [2] - The company completed the acquisition of Informatica three months ahead of schedule, with expectations of significant revenue contributions in the coming fiscal years [2] Future Outlook - The revenue forecast for FY2026 has been adjusted to $41.15–$41.25 billion, with Informatica expected to contribute approximately 80 basis points to this growth [3] - The projected revenues for FY2025, FY2026, and FY2027 are $41.367 billion, $46.248 billion, and $50.681 billion, respectively, reflecting an upward revision from previous estimates [3][12]

SAN FRANCISCO & WASHINGTON--(BUSINESS WIRE)--Salesforce, the world's #1 AI CRM, today announced an expanded agencywide transformation initiative with the U.S. Department of Transportation (USDOT). Salesforce is already modernizing core functions across USDOT, helping enhance citizen safety through real-time, interstate data sharing and will simplify the management of billions in federal grants. USDOT will also deploy Agentforce — Salesforce's AI agent platform — to help create a more efficient and responsiv ...

Salesforce Conference Call Summary Company Overview - **Company**: Salesforce (NYSE: CRM) - **Date**: December 08, 2025 - **Speaker**: Susan Emerson, part of the AI product team known as Agentforce Key Points Industry and Product Developments - **AI Product Focus**: Salesforce has been heavily investing in AI, particularly through the Agentforce initiative, which includes advancements in voice technology and hybrid reasoning capabilities [2][4][6] - **Voice Integration**: The company has launched voice capabilities for customer-facing AI, emphasizing its importance as a communication channel [4][5] - **Hybrid Reasoning**: Introduced a reasoning engine that combines probabilistic and deterministic approaches, allowing organizations to create more effective AI agents without needing advanced technical skills [6][9] Customer Success and Use Cases - **Customer Adoption**: Salesforce reported a significant increase in Agentforce deals, with 18,500 deals noted and a 50% quarter-over-quarter increase in production usage [14][15] - **Industry Examples**: - A large insurer uses Salesforce for underwriting and customer interactions, leveraging AI to reduce friction in processes [16] - A recruitment company has improved candidate pipelines and acceptance rates through AI, demonstrating the effectiveness of digital labor [21] - A healthcare company has reduced call center staff through AI, allowing for higher wages and more complex tasks for remaining employees [23] Budgeting and Investment Trends - **Budget Evolution**: Organizations are transitioning from experimentation to transformation, with AI budgets increasingly being discussed at the CEO level [19] - **Digital Labor Concept**: The idea of digital labor is becoming clearer for organizations, with many seeing tangible benefits in efficiency and cost savings [20][24] Competitive Landscape - **Market Positioning**: Salesforce emphasizes its unique advantages, including comprehensive customer data integration and a flexible architecture that supports various AI models [30][31] - **Openness and Flexibility**: The company promotes an open architecture that allows for integration with various data sources and AI models, positioning itself as a future-proof solution [31][32] Data Cloud and Infrastructure - **Data Cloud Importance**: Salesforce's Data Cloud is positioned as an activation substrate, allowing organizations to leverage existing data lakes without needing to migrate data [34][36] - **Informatica Acquisition**: The acquisition of Informatica enhances Salesforce's capabilities in data management, lineage, and cataloging, further supporting AI initiatives [37] Future Growth Opportunities - **Growth Targets**: Salesforce aims for a $60 billion target, with significant opportunities identified in AI-driven transformations across various processes [41][42] - **Multi-Cloud Strategy**: The company sees potential in expanding its multi-cloud offerings, leveraging its diverse cloud solutions to drive innovation [43] Pricing Strategy - **Flexible Pricing Models**: Salesforce has developed various pricing strategies, including per-user models and pay-as-you-go options, to accommodate different customer needs [27][28][29] Additional Insights - **AI's Transformative Impact**: AI is seen as integral to Salesforce's future, with the potential to automate processes and create new use cases based on user interactions [42][43] - **Investment in Human Capital**: The company is increasing its capacity in AI and data sales, as well as investing in training programs for employees to enhance adoption and implementation [39][40]

Core Insights - Salesforce reported strong fiscal 2026 third-quarter results, driven by its AI platform Agentforce, which significantly contributed to revenue growth [2][10] - Despite the positive results, Salesforce's stock has decreased by 25% this year due to investor concerns regarding the impact of AI on SaaS companies [2][12] Financial Performance - Salesforce's revenue increased by 9% year over year to $10.26 billion, slightly missing the consensus estimate of $10.27 billion [6] - Subscription and support revenue rose by 10% to $9.73 billion [6] - Adjusted earnings per share (EPS) surged 35% to $3.25, exceeding the consensus estimate of $2.86 [10] Growth Drivers - Agentforce's annual recurring revenue (ARR) grew 330% to $540 million, with 9,500 paid deals, a 50% increase from the previous quarter [4][5] - Data 360 also contributed to growth, with its records processed more than doubling in the quarter, leading to a combined ARR of $1.4 billion for Agentforce and Data 360, a 114% year-over-year increase [5] Future Guidance - Salesforce raised its full-year revenue guidance to $41.45 to $41.55 billion, with projected revenue growth of 9% to 10% [10] - For fiscal Q4, the company expects revenue to increase by 11% to 12%, projecting adjusted EPS between $3.02 and $3.04 [10] Valuation Metrics - Salesforce is currently trading at a forward price-to-sales multiple of 5.3 and a forward price-to-earnings (P/E) ratio of 19.5, with a price/earnings-to-growth (PEG) ratio below 0.55, indicating potential undervaluation [11]