Can Agentforce Momentum Help Salesforce Reignite Revenue Growth?

Salesforce, Inc. CRM is counting on Agentforce to revive growth at a time when its revenue expansion has slowed to single digits. For years, the company has delivered strong double-digit revenue increases. However, that pace has now cooled to single digits. In the first, second and third quarters of fiscal 2026, revenues rose 7.6%, 9.8% and 8.6%, respectively, year over year.

Salesforce is building a broader ecosystem focused on artificial intelligence (AI), data and collaboration to cope with the slowing top-line growth trend. Over the past year, the company has been rebuilding its core products around an agentic framework, known as Agentforce, aiming to make AI a central layer across sales, service, marketing and Slack.

Salesforce’s Agentforce platform is gaining solid momentum. Combined with Data Cloud, these AI-driven offerings brought in $1.4 billion in recurring revenues in the third quarter of fiscal 2026, representing a 114% year-over-year increase. Agentforce alone generated $540 million in recurring revenues, up 330% year over year.

Booking trends are encouraging as well. Salesforce ended the third quarter of fiscal 2026 with the current remaining performance obligation of $29.4 billion, rising 11% year over year, primarily driven by larger deals and early renewals. Management highlighted that more than 50% of Agentforce deals came from existing clients, showing Salesforce’s success in cross-selling AI features to its user base.

Overall, Agentforce is providing Salesforce with a clearer path to reaccelerate growth. However, the durability of this shift will depend on sustained adoption and consistent execution across its various cloud segments. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates that revenues will increase 9.3% and 10.3%, respectively, year over year.

How Rivals 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 21.3% year to date against the Zacks Computer – Software industry’s growth of 12.1%.

Salesforce YTD Price Return Performance

From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 21.23, significantly below the industry’s average of 29.68.

Salesforce Forward 12-Month P/E Ratio

The Zacks Consensus Estimate for Salesforce’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 14.2% and 10.5%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward in the past seven days.

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).

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