Salesforce (CRM) Gained on Several Fronts

Investment management company Vulcan Value Partners recently released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. All the strategies of Vulcan Value Partners delivered positive results in the year. The Large Cap Composite (Net) returned -1.5% in Q4 and 7.9% YTD, the Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD, The Focus Composite (Net) retuned 0.1% in Q4 and 7.1% YTD, Focus Plus Composite (Net) returned 0.1% in Q4 and 6.2% YTD and the All-Cap Composite (Net) returned 1.3% in Q4 and 10.7% YTD. Despite overvalued markets, the firm improved its price-to-value ratios while still achieving positive returns, prioritizing safety and long-term gains over short-term performance. This situation echoes the late 1990s dot-com bubble, where hype and high valuations led to a crash, and today’s AI disruptions seem to mirror that pattern, with investors risking overpaying for promising businesses. The firm is addressing such situations by sticking to its investment discipline. For more information on the firm’s best picks in 2025, please check its top five holdings. In addition, please check the firm’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Vulcan Value Partners highlighted Salesforce, Inc. (NYSE:CRM) as a notable contributor within its Focus and Focus Plus Strategies. Salesforce, Inc. (NYSE:CRM) offers Customer Relationship Management (CRM) technology that brings companies and customers together. The one-month return for Salesforce, Inc. (NYSE:CRM) was -13.73%, and its shares lost 36.27% of their value over the last 52 weeks. On January 26, 2026, Salesforce, Inc. (NYSE:CRM) stock closed at $229.40 per share, with a market capitalization of $218.389 billion.

Vulcan Value Partners stated the following regarding Salesforce, Inc. (NYSE:CRM) in its fourth quarter 2025 investor letter:

"Salesforce, Inc. (NYSE:CRM) is the world’s leading SaaS vendor for customer relationship management (CRM) and salesforce automation (SFA) software, including AI agents. Salesforce offers many other products including software for marketing automation, customer service automation, analytics, application integration, and enterprise collaboration among others. The company held an Investor Day where they provided targets through FY2030 for 10%-plus organic top line growth and significant margin expansion. Additionally, they delivered more successful data points related to Agentforce including triple digit revenue growth and a significant number of new customer wins and existing customer expansions. Salesforce is deeply entrenched within its customer base, has high retention, high recurring revenue, and is a very scalable business with high margin potential. Salesforce is dominant across its offerings and is constantly innovating with new products like Agentforce to deepen customer relationships and grow the business."

Salesforce, Inc. (NYSE:CRM) is in the 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 119 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the third quarter, compared to 121 in the previous quarter. In the third quarter of 2026, Salesforce, Inc. (NYSE:CRM) reported revenue of $10.26 billion, reflecting an increase of 9% year over year and 8% in constant currency. While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Salesforce, Inc. (NYSE:CRM) and shared the list of best long-term tech stocks to buy according to analysts. L1 Capital International Fund initiated a position in Salesforce, Inc. (NYSE:CRM) during Q4 2025. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.