Salesforce, Inc. (NYSE:CRM) ranks among the best AI stocks to buy according to analysts. On December 4, Piper Sandler reaffirmed its Overweight rating and $315 price target for Salesforce, Inc. (NYSE:CRM) following the company’s third-quarter results, noting solid advancements in its artificial intelligence products. Pixabay/Public Domain The CRM powerhouse reported Q3 revenue of $10.3 billion, a 9% year-over-year rise, as well as operational cash flow of $2.3 billion, up 17% year-over-year, along with ...

Salesforce, Inc. (NYSE:CRM) is among the most undervalued tech giants to buy according to hedge funds. On December 24, TheFly reported that Barron’s, in its Stock Picks column, stated that although the software sector has been volatile over the past few years, Salesforce, Inc. (NYSE:CRM) could rally as AI-related concerns ease and the company’s management remains focused on improving profitability. The report cites research from prominent analysts, including Oakmark Funds portfolio manager Bill Nygren and ...

Key Takeaways NOW is showing stronger growth and execution than Salesforce as enterprises expand digital workflows.NOW closed 103 deals above $1M ACV in Q3 2025, while customers generating over $5M ACV continued to climb.CRM's AI products drove $1.4B in Q3 recurring revenues; overall sales growth has slowed to single digits.Salesforce (CRM) and ServiceNow (NOW) are two of the most important enterprise cloud software companies, helping large organizations modernize operations, automate workflows and manage c ...

Core Viewpoint - Salesforce stock has experienced a correction of 22% year-to-date but has seen a recent rally of 15% in the last month due to strong Q3 results and a positive growth outlook, making it a potential investment for 2026 [1] Group 1: Company Performance - Salesforce reported Q3 2026 revenue of $10.3 billion and a GAAP operating margin of 21.3% [3] - The company has closed over 18,500 deals with Agentforce since its launch, including 9,500 paid deals, indicating strong customer intake acceleration [5] - Salesforce returned $4.2 billion to shareholders through dividends and share repurchases in Q3 2026, suggesting sustained value creation [6] Group 2: Analyst Insights - Evercore has identified Salesforce as a top enterprise software stock for 2026, citing momentum from its AI strategy and potential revenue re-acceleration [2] - Mizuho analyst Gregg Moskowitz noted that Salesforce is systematically addressing challenges related to Agentforce adoption, which is expected to lead to growth acceleration [2] Group 3: Stock Performance - CRM stock has remained relatively stable over the past six months, but the potential for growth acceleration makes it an attractive consideration [4]

Summary of Conference Call Company and Industry - The conference call primarily discusses Salesforce, a leading company in the cloud-based software industry, particularly focusing on customer relationship management (CRM) and AgenTech solutions. Key Points and Arguments 1. **Strong Financial Performance**: Salesforce reported its best Q3 results in company history, with bookings growing significantly, marking the fastest growth in three and a half years [1][2] 2. **Net New ACV Growth**: The company emphasized the importance of net new Annual Contract Value (ACV), which is the difference between bookings and attrition. This metric is crucial as it indicates future revenue acceleration [1][2] 3. **Future Revenue Projections**: Salesforce aims to reach $60 billion in fiscal year 2030, driven by unprecedented demand and a robust sales pipeline [4] 4. **Agentforce Product Success**: The Agentforce product has shown remarkable growth, achieving $550 million in ARR, with a 450% year-on-year increase. Over 18,000 customers are using Agentforce, with 9,500 paying customers [10][12] 5. **Customer Engagement**: More than 50% of bookings in Q3 came from existing customers who are increasing their usage of Agentforce, indicating strong customer satisfaction and engagement [12][14] 6. **AgenTech Market Potential**: Salesforce is positioning itself as a leader in the AgenTech space, with expectations that most of its 1.2 million customers will adopt its platform for digital labor solutions, potentially multiplying their business with Salesforce by three to four times [34][36] 7. **AI Integration**: The call highlighted the importance of integrating AI into enterprise solutions, emphasizing that Salesforce's existing data and execution capabilities provide a competitive advantage in scaling AI solutions [46][60] 8. **Sales Capacity Increase**: Salesforce has increased its sales capacity by 23% and expects to finish the year with a 20% increase, which is crucial for meeting the growing demand for its products [78][88] 9. **Productivity Metrics**: The company focuses on three key metrics: net new ACV growth, productivity, and consumption of its products, which are essential for maintaining growth and efficiency [100][102] 10. **Customer Refilling the Tank**: The concept of customers "refilling the tank" refers to existing customers increasing their usage of Salesforce products, which shortens sales cycles and enhances productivity [111] Other Important Insights - **Pricing Strategies**: Salesforce is offering flexible pricing options, including the AgenTech Enterprise License Agreement (AELA) for customers ready to scale, and pay-as-you-go models for those wanting to experiment [71][75] - **Competitive Landscape**: Salesforce is gaining market share from competitors like Veeva in the life sciences sector, having won contracts with major pharmaceutical companies [95] - **Innovation and Product Launches**: The company continues to innovate with new products and features, such as Voice and Life Sciences Cloud, which are expected to drive further growth [90][96] This summary encapsulates the key insights from the conference call, highlighting Salesforce's strong performance, growth strategies, and market positioning in the evolving tech landscape.

Core Insights - Salesforce, Inc. is relying on its Agentforce platform to rejuvenate 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: Agentforce and Revenue Growth - The company is developing a broader ecosystem centered on artificial intelligence (AI), data, and collaboration to address the slowing revenue growth trend, with Agentforce being a key component [2] - Agentforce, combined with Data Cloud, generated $1.4 billion in recurring revenues in Q3 of fiscal 2026, marking a 114% year-over-year increase, while Agentforce alone contributed $540 million, up 330% year over year [3][10] - The current remaining performance obligation (CRPO) reached $29.4 billion, an 11% increase year over year, driven by larger deals and early renewals, with over 50% of Agentforce deals coming from existing clients [4][10] Group 2: Market Position and Competitors - Salesforce's stock has decreased by 21.3% year to date, contrasting with the Zacks Computer – Software industry's growth of 12.1% [8] - Competitors like Microsoft and ServiceNow are also advancing AI automation in the enterprise market, with Microsoft integrating AI features into Dynamics 365 and ServiceNow rolling out industry-specific AI tools [6][7] Group 3: Valuation and Earnings Estimates - Salesforce trades at a forward price-to-earnings ratio of 21.23, significantly lower than the industry average of 29.68 [11] - The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates earnings growth of approximately 14.2% and 10.5% year over year, respectively, with recent upward revisions in estimates [14]

Core Insights - Snowflake's stock may face challenges in achieving significant returns in 2026 despite strong operating results and a 43.7% increase in stock price this year [1][3] - The company has developed the Data Cloud to help businesses aggregate data from multiple cloud providers, which is crucial for effective AI model development [2] Financial Performance - Snowflake generated $1.16 billion in product revenue in the third quarter, reflecting a 29% year-over-year increase, surpassing management's forecast of $1.13 billion [9] - Remaining performance obligations (RPOs) grew by 37% to a record high of $7.8 billion, indicating potential future revenue, although less than half is expected to be recognized in the next 12 months [10] - The company reported a net loss of $293 million in the third quarter, contributing to a year-to-date loss exceeding $1 billion due to increased operating expenses [11] AI and Product Development - Snowflake launched Cortex AI in 2023, providing businesses with tools to implement AI solutions, including access to large language models from developers like OpenAI [5] - The platform includes Document AI, which automates data extraction from unstructured sources, significantly reducing the time and cost associated with manual data processing [6] - Snowflake Intelligence, a feature of Cortex, allows employees to use natural language to derive insights from internal data, enhancing productivity across skill levels [7] Customer Engagement - As of the end of fiscal Q3 2026, Snowflake had 12,621 customers, with 7,300 using AI products weekly, more than doubling from 3,200 in the previous year [8] Valuation Concerns - Snowflake's current price-to-sales (P/S) ratio stands at 17.4, which is significantly higher than other major cloud and AI service providers, potentially limiting future stock gains [14] - Competitors like Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure have reported faster revenue growth rates, raising questions about Snowflake's premium valuation [17]

Core Viewpoint - Salesforce is evolving its identity to reflect a stronger focus on artificial intelligence (AI), indicating a significant shift from its traditional cloud-centric model to autonomous, intelligent systems [1][2]. Group 1: Strategic Shift - The company has begun rebranding its product offerings under the Agentforce banner, which includes Agentforce Sales, Agentforce Service, and Agentforce 365 Platform, signaling a comprehensive pivot towards AI [2]. - CEO Marc Benioff suggested that the shift could be profound, hinting at the possibility of the entire corporation adopting the Agentforce name [2]. Group 2: Market Performance - Salesforce's stock has faced challenges, with a market cap of approximately $243.2 billion and a share price decline of 25.76% over the past 52 weeks, underperforming compared to the broader tech sector [4]. - Recently, the stock has shown positive momentum, increasing by 8.81% over the past month and 11.21% in the last five trading days, largely driven by a stronger-than-expected fiscal 2026 third-quarter earnings report [5]. Group 3: Valuation Metrics - Currently, Salesforce trades at 22.05 times forward adjusted earnings and 5.87 times sales, both of which are below their respective five-year average multiples, suggesting a potential valuation discount [6].

Key Takeaways CRM's Q3 earnings topped forecasts, while revenues grew 10% year over year.AI tools like Agentforce and Data Cloud drove strong recurring revenue gains.CRM's sales growth has slowed as enterprises pull back on large IT investments.Salesforce, Inc. (CRM) recently posted decent third-quarter fiscal 2026 results, helping its shares rise 9.3% since the Dec. 3 release. CRM’s third-quarter non-GAAP earnings per share (EPS) surpassed the Zacks Consensus Estimate, while revenues matched the same. The ...

Core Insights - Salesforce Inc. is recognized as one of the most profitable tech stocks, with a strong Q3 performance and confidence in future growth despite a price target reduction by Truist from $400 to $380 [1][3] Financial Performance - For Q3 2025, Salesforce reported quarterly revenue of $9.44 billion, reflecting an 8% year-over-year growth, with Subscription and Support Revenue increasing by 9% [2] - The company achieved a Non-GAAP EPS of $2.41, which included a $0.18 charge from strategic investment adjustments [2] - Remaining Performance Obligations (RPO) stood at $53.1 billion, up 10%, while Current RPO was at $26.4 billion, showing a slight increase of over 10% [2] Market Strategy and Growth - Salesforce's AI-driven strategy is gaining traction, with the new platform Agentforce closing over 200 deals in just one week, indicating strong market demand [3] - The Data Cloud was included in 8 of the top 10 deals in the quarter, highlighting its importance in AI transformations and data harmonization [3] - To support this growth, Salesforce is expanding its workforce by hiring 1,400 account executives globally [3]