Salesforce Inc. CRM is seeing rapid adoption of its Agentforce platform, signaling strong potential for it to become a key growth engine. The company is moving beyond traditional customer relationship management tool providers toward artificial intelligence (AI) agents that can automate workflows and deliver real business outcomes.
At the end of the fourth quarter of fiscal 2026, Agentforce’s annual recurring revenues (ARR) reached about $800 million, growing 169% year over year. The platform has also crossed 29,000 deals, with the deal count rising nearly 50% sequentially, showing strong enterprise interest. This rapid expansion suggests that customers are increasingly willing to adopt AI-driven solutions at scale.
Agentforce is also driving broader ecosystem growth. Combined with the Data 360 platform, Salesforce’s AI-related ARR exceeded $2.9 billion at the end of fiscal 2026, up more than 200% year over year. Importantly, more than 60% of these deals come from existing customers, highlighting strong cross-sell opportunities within its large customer base.
Booking trends are encouraging as well. Salesforce ended the fourth quarter of fiscal 2026 with the current remaining performance obligation of $35.1 billion, rising 16% year over year, primarily driven by larger deals and early renewals.
Agentforce is gaining strong traction and creating a new revenue stream. If executed well, we believe that Agentforce has the potential to become a major driver of Salesforce’s next phase of growth. Management forecasts that fiscal 2027 revenues will increase in the 10-11% range, while the Zacks Consensus Estimate indicates 10.9% year-over-year growth.
How Competitors Fare Against Salesforce
Microsoft Corporation MSFT and ServiceNow, Inc. NOW are also pushing AI automation in the enterprise market.
Microsoft has integrated strong AI features into its Dynamics 365 platform through its Copilot tools, simplifying tasks such as writing emails, creating reports and summarizing meetings for users. Since many companies already use Microsoft products, integrating Copilot into their existing workflows is simple and cost-effective.
ServiceNow’s Now Assist platform uses AI to automate IT service management, customer support and human resource management tasks. ServiceNow has been rolling out industry-specific AI tools, similar to what Salesforce is doing with Agentforce.
Salesforce’s Price Performance, Valuation and Estimates
Shares of Salesforce have plunged 35% over the past year, while the Zacks Internet – Software industry has risen 4%.
Salesforce One-Year Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 12.84, significantly below the industry’s average of 28.77.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 5% and 11.8%, respectively. Estimates for fiscal 2027 and 2028 have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
