CRM's Agentforce ARR Jumps 330% Y/Y: Is It the Next Growth Engine?

Salesforce‘s CRM Agentforce, which combines AI agents, humans, applications and enterprise data, uses LLM to build, deploy and manage workflows for processes in sales, service and marketing, is gaining traction as implied by its ARR of $540 million in third-quarter fiscal 2026, which grew 330% on a year-over-year basis.

Salesforce was able to close more than 18,500 Agentforce deals since its launch, among which 9,500 were paid transactions. The company also reported that more than 50% of new Agentforce bookings from existing customers expanded. Agentforce processed 3.2 trillion tokens since its launch, among which 540 billion tokens were in October, up 25% sequentially.

Agentforce has been able to achieve a remarkable feat of processing 1.2 billion LLM calls to date, among which more than 200 million LLM calls were processed in the third quarter alone. All this indicates strong early adoption and confidence in the Agentforce platform’s value. Customers are moving rapidly from pilot programs to full production.

The consumption-based model, supported by newly introduced flexible payment options such as Flex Credits, is fueling demand for the Agentforce platform. This model can potentially drive recurring revenue growth over time, providing visibility and durability to Salesforce’s top line.

How Competitors Fare Against CRM Stock

Microsoft Corp. 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 lost 2.5% year to date against the Zacks Computer – Software industry’s decline of 4.9%.

CRM Six-Month Perfromance Chart

From a valuation standpoint, CRM trades at a forward price-to-sales ratio of 5.47, significantly below the industry’s average of 7.55.

CRM Forward 12 Months (P/S) Valuation Chart

The Zacks Consensus Estimate for Salesforce’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 15.10% and 10.53%, respectively. Estimates for fiscal 2026 and fiscal 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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