Key Stats for Salesforce Stock
- Past week’s performance: 2%
- 52-week range: $164 to $296
- Valuation model target price: $284
- Implied upside: +54.5% over 2.7 years
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What Happened?
Salesforce, Inc. (CRM) has fallen more than 30% year to date in 2026. But the stock bounced about 3% over the past week as the enterprise software sector rallied. Atlassian raised its full-year revenue forecast, and that lifted sentiment across software names. And CRM shares moved higher alongside peers as confidence returned to the space.
The Q4 FY2026 earnings report was a genuine bright spot for the company. Salesforce posted adjusted EPS of $3.81, beating the $3.05 analyst estimate by nearly 25%. Revenue came in at $11.2 billion, roughly in line with expectations. But management’s FY2027 adjusted EPS guidance of $13.11 to $13.19 read cautiously to some investors.
The biggest news of 2026 is Salesforce’s $25 billion accelerated share repurchase program, the company’s largest buyback ever. A share repurchase means Salesforce buys back its own stock on the open market.
So fewer shares outstanding means each remaining share earns a bigger slice of company profits. And management’s decision to launch this program signals that leadership believes the stock is meaningfully undervalued.
Going forward, Q1 FY2027 earnings are expected on May 27. Agentforce is Salesforce’s AI agent platform that automates business tasks like customer service and sales. Investor focus will center on whether this platform is converting enterprise interest into real revenue. If CRM stock shows clear Agentforce traction on May 27, the case for a sustained recovery becomes much stronger.
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Is Salesforce Stock Undervalued?
Under valuation model assumptions realized through 12/31/28, the stock is modeled using:
- Revenue growth (CAGR): 10.5%
- Operating Margins: 36.1%
- Exit P/E Multiple: 13.9x
Based on these inputs, the model estimates a target price of $284, implying 54.5% total upside from the current share price and a 17.1% annualized return over the next 2.7 years.
The 10.5% revenue growth assumption is modest relative to Salesforce’s own history. Salesforce has compounded revenue at 14.3% annually over the past five years. So the model does not assume any acceleration back toward prior peak growth rates. This makes the bull case grounded in realistic execution rather than optimism.
The 36.1% operating margin forecast is meaningful, but Salesforce is already trending in that direction. Salesforce has been cutting costs, streamlining headcount, and improving efficiency across its cloud portfolio. And the company’s gross margin of 77.7% gives the business significant room to expand profits as top-line growth continues.
The 13.9x exit P/E is strikingly conservative for a dominant enterprise software company. Salesforce has historically traded at a 10-year average P/E closer to 48x. Even a modest re-rating toward 20x to 25x would deliver substantial upside. Yet the current forward P/E near 14x sits at multi-year lows, creating an asymmetric setup for patient investors.
What’s Driving CRM Stock Going Forward?
The most important near-term catalyst is Q1 FY2027 earnings expected on May 27. Agentforce allows businesses to deploy autonomous AI agents across sales, service, and marketing workflows. Management will need to show that paid adoption is accelerating. But even modest growth data could reset expectations given how much negative sentiment is already priced into the stock.
The $25 billion buyback is also a major structural tailwind for shareholders. Salesforce’s share count has been declining steadily through years of consistent repurchases. And this new accelerated program means the pace of reduction picks up significantly. A smaller float directly boosts earnings per share even if revenue growth stays moderate.
Salesforce recently acquired Momentum, an AI-driven platform focused on sales coaching and deal insights. This acquisition adds practical enterprise tools to the Agentforce ecosystem. So the deal strengthens Salesforce’s competitive position in the sales productivity space and deepens its footprint inside existing customer accounts.
Revenue reporting structure will also evolve in FY2027, following the disaggregated revenue update Salesforce published in May 2026. This adds transparency around individual cloud products and segments. And investors who can better track which services are growing fastest tend to reward that clarity with higher valuations over time.
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Should You Invest in Salesforce?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up CRM, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track CRM alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
