CRM
Fresh bull, same old bar
Salesforce is heading into its fiscal Q2 earnings with a familiar setup: Wall Street likes the AI story, but it wants the numbers to stop being shy. Canaccord Genuity kept a Buy rating and a $225 price target, arguing that Salesforce’s AI push is growing fast — but maybe not fast enough to make the revenue engine purr on its own.
The AI glow-up is real
The big headline here is Agentforce, Salesforce’s AI product family, which has been on a tear. Management said Agentforce ARR jumped 205% year over year in Q1 and crossed $1.2 billion, while combined Agentforce and Data 360 ARR reached $3.4 billion. That’s not pocket change — that’s the kind of growth that makes investors sit up a little straighter.
But here’s the catch: Salesforce is already a giant. So even a few hundred million dollars of sequential AI progress is impressive and still not enough to magically move the whole revenue boulder uphill by itself. The analyst’s main concern is that the company still needs new customer business to keep outpacing existing-business growth if it wants the back half of fiscal 2027 to look as sunny as management hopes.
Why investors should care
The market is basically asking a very Silicon Valley question: is AI a real revenue engine, or just the world's fanciest demo? Salesforce’s upcoming report should give a clue through cRPO and bookings momentum. If those numbers show strength, it would suggest the AI glow-up is starting to show up in the forward revenue base — and not just in the company’s keynote slides.
Big picture: Salesforce doesn’t need people to believe the AI story. It needs them to believe the AI story can keep showing up in the numbers.