Key Stats for Salesforce Stock
- This-Week Performance: 23%
- 52-Week Range: $146 to $269
- Valuation Model Target Price: $269
- Implied Upside: 5%
Analyze your favorite stocks like Salesforce with TIKR (It’s free) >>>
What Happened?
Salesforce stock rose about 23% this week, trading near $258 per share, as fiscal second-quarter results and a deeper Anthropic partnership shifted the market’s biggest debate around the company: whether generative AI will disrupt traditional enterprise software or become a new growth engine for platforms that already control customer data and workflows. Shares surged 22.6% on August 27, their strongest reaction to earnings in years, as investors increasingly viewed AI as a monetization opportunity for Salesforce rather than simply a threat to its core customer relationship management business.
Salesforce stock is up this week because stronger bookings, accelerating AI adoption, and higher revenue guidance gave investors clearer evidence that business growth is beginning to reaccelerate. Revenue increased 11% year over year to $11.3 billion, while current remaining performance obligations, or contracted revenue expected largely over the next 12 months, reached $33.5 billion, up 14%. Agentforce, Salesforce’s platform for AI agents that perform business tasks, and Data 360, which brings enterprise data together for those agents to use, reached nearly $3.9 billion in combined annual recurring revenue, up more than 210%. Agentforce ARR alone exceeded $1.5 billion, up more than 240%, while Salesforce raised fiscal 2027 revenue guidance to $46.1 billion to $46.4 billion.
This week, Salesforce Deputy CFO Michael Spencer said Q2 bookings exceeded internal expectations by a wide margin, with record net new annual order value supporting management’s expectation for organic growth to accelerate through the second half. About 50% of bookings over the past couple of quarters came from customers refilling consumption capacity, and those customers were growing at roughly 2x the rate of traditional customers. Spencer said, “we’re accelerating in every single scenario,” while pointing to consumption growth, Slack momentum, and Informatica as building blocks toward Salesforce’s longer-term goal of 11% compound revenue growth to $63 billion by FY30.
Wall Street reinforced the rebound with a broad wave of post-earnings target increases. Barclays raised its target to $276 from $236, TD Cowen to $280 from $240, Oppenheimer to $275 from $250, RBC Capital to $250 from $210, UBS to $240 from $210, Wells Fargo to $230 from $205, and Guggenheim to $270 from $228. The competitive backdrop shows why execution still matters: Microsoft Dynamics 365 revenue grew 13%, Oracle Cloud Applications revenue grew 10%, and ServiceNow subscription revenue increased 24.5% in their latest reported quarters, compared with Salesforce’s 11% overall revenue growth. ServiceNow also crossed $1 billion in AI annual contract value, highlighting how aggressively Microsoft, Oracle, and ServiceNow are competing for enterprise AI spending.
Value Salesforce instantly (Free with TIKR) >>>
Is Salesforce Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): around 10%
- Operating Margins: around 34%
- Exit P/E Multiple: around 14x
Salesforce’s path to around 10% annual revenue growth increasingly depends on moving Agentforce customers from pilots into production, where greater AI usage can translate into recurring consumption revenue; Q2 included 3.2 billion Agentic Work Units, up 97% quarter over quarter, while bookings from premium Agentforce offerings more than doubled.
Data 360 and Slack broaden that opportunity because Salesforce can layer AI onto data and employee workflows already inside its ecosystem, while Slack delivered its fastest quarterly net new annual order value growth since the acquisition and Slackbot users increased more than 150% quarter over quarter.
See analysts’ growth forecasts and price targets for Salesforce (It’s free) >>>
Profitability provides another major lever: Salesforce delivered a 34.1% non-GAAP operating margin in Q2 while continuing to invest heavily in AI, so additional revenue from existing customers could create operating leverage if sales and marketing costs grow more slowly than revenue.
Based on these assumptions, TIKR’s valuation model estimates a target price of about $269, implying roughly 5% total upside over 2.4 years, while the assumed 14x exit P/E sits below Salesforce’s current roughly 18x NTM multiple shown in TIKR, meaning the model assumes valuation compression rather than relying on a richer multiple.
At current levels, Salesforce appears fairly valued, with the strongest path to better returns coming from faster Agentforce monetization, higher customer consumption, Data 360 and Slack cross-selling, sustained bookings growth, and margins holding around 34% as AI becomes a larger part of the business.
How Much Upside Does CRM Stock Have From Here?
Investors can estimate Salesforce’s potential share price, or what any stock could be worth, in under a minute using TIKR’s New Valuation Model tool.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
Value Salesforce in under 60 seconds with TIKR (It’s free) >>>
