Salesforce is an organization that has its software program as a service, buyer relationship administration (CRM) platform as its core enterprise, but additionally owns Slack and plenty of different platforms.
The corporate has been engaged on synthetic intelligence for fairly a while, and is now centered on selling its agentic AI platform, which it calls Agentforce.
AI brokers are supposed to have the ability to do every thing from help to gross sales. The corporate not too long ago eliminated the search function from Salesforce Assist and changed it with Agentforce.
This transfer precipitated a fairly indignant response from its prospects on its ideaexchange web site, and the corporate rapidly responded that it’s going to carry again search, presently slated to go reside on November 15.
Any investor ought to keep in mind that AI brokers cannot change a easy search.
The corporate has additionally revealed its plans to enter a brand new market.
“In a sit-down interview with Jim Cramer in San Francisco on October 14, 2025, during the Dreamforce 2025 conference, Benioff revealed that Salesforce is moving into IT service management (ITSM) with its Agentforce agentic IT service. He considers this more of a platform play, leveraging the company’s existing footprint,” writes Moz Farooque for TheStreet.
Salesforce is able to tackle IT service administration market with its agentic AI.
Picture supply: Lam/Stringer by way of Getty Photographs
Salesforce Q2 income grows 10% to $10.2 billion yr over yr
On September 3, Salesforce CRM reported its outcomes for Q2 of fiscal 2026.
“We delivered an outstanding quarter to close out the first half of the year, with strong performance across revenue, margin, cash flow, and cRPO—and we remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow,” stated Marc Benioff, chair and CEO, Salesforce.
Listed below are the earnings highlights:
- Income of $10.2 billion, up 10% year-over-year
- Working margin of twenty-two.8%
- Web revenue of $1.9 billion, up 32% YoY
The corporate supplied an outlook for Q3/full fiscal yr 2026:
- Q3 Income of $10.24 billion to $10.29 billion
- Full yr working margin of 21.2%
- Full yr working money circulate progress of 12% to 13% YoY
Financial institution of America analysts say new pricing may enhance Agentforce adoption
Financial institution of America analysts Brad Sills and Matt Bullock up to date their opinions on Salesforce shares after attending Salesforce’s analyst day on the Dreamforce convention in San Francisco.
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Analysts stated discussions with greater than ten Salesforce companions counsel secure to bettering demand for Gross sales and Service Clouds with gradual pipeline builds for Agentforce.
They raised their estimates for fiscal yr 2027 and 2028, at no cost money circulate (FCF) to $16.2 billion (+2.5%) and $18.5 billion (+3.7%). Analysts famous that Salesforce launched a extra versatile pricing and packaging technique for Agentforce.
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The corporate’s Agentic Enterprise Licensing Agreements (AELA) present limitless consumption for Agentforce, Knowledge Cloud, and Mulesoft. Silis stated that the introduction of AELAs is more likely to catalyze adoption, and that in addition they have the potential to speed up progress in direction of extra widespread agent deployments and a bigger secure of Lighthouse prospects.
Analysts famous draw back threat elements for Salesforce:
- Competitors from level options and platform distributors
- Salesforce’s historical past of acquisitions may current a better diploma of execution threat, given the necessity to constantly combine the acquired applied sciences
- Cyclical nature of enterprise software spending, and tariff-induced reductions in demand signify dangers to topline progress.
Sills reiterated a purchase ranking, with a goal value of $325, primarily based on an enterprise worth to FCF ratio a number of of 19.1x his FCF estimate for calendar yr 2026.
Key takeaways:
- Salesforce Q2 income elevated 10% YoY to $10.2 billion
- Analysts reiterated a purchase ranking and the goal value of $325
- Analysts raised estimates for FCF to $16.2 billion in fiscal 2027
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