Salesforce Shares Seen as Undervalued Amid AI-Driven Growth
Despite fears that artificial intelligence would replace SaaS companies, Salesforce has seen its shares rebound by nearly 20% over the past month. The company is leveraging agentic AI to drive growth and gain market share in customer relationship management (CRM). CEO Marc Benioff highlighted strong performance from Agentforce, which generated $1 billion in annual recurring revenue with a sequential growth rate of 111%. Salesforce reported a 13% year-over-year increase in first-quarter fiscal 2027 revenue. The company anticipates continued momentum, forecasting 10-11% year-over-year revenue growth for the second quarter and full-year guidance. A $33.6 billion backlog of current remaining performance obligations supports these projections. Salesforce's valuation has dropped significantly from a P/E ratio above 40 to around 21, making it more attractive despite strong earnings per share growth. Investors are reassessing the company’s long-term potential as AI becomes integral to its offerings and customer retention strategies.
Tickers: $CRM
Topics: agentic AI AI CRM revenue SaaS growth