Salesforce recently reported strong earnings for its fourth quarter of fiscal 2025, focusing on the potential of its new agentic AI technology, known as Agentforce. This AI-driven solution is designed to improve productivity by allowing software bots to perform tasks with minimal human intervention. Despite a challenging start to 2025, with stock down about 10%, Salesforce is optimistic about future growth. Their latest quarterly revenue reached $10 billion, with an increase in subscriptions and support services. Salesforce aims to grow revenue by 7-8% in fiscal 2026. With attractive stock valuations and the promising Agentforce platform, Salesforce could see a rebound in its stock performance later this year.
On Wednesday, Salesforce (CRM) announced strong results for its fiscal 2025 fourth quarter, signaling a focus on artificial intelligence (AI) as a key growth factor. Salesforce is determined to harness the power of agentic AI, which involves software bots completing tasks autonomously with minimal human intervention. This technology is seen as a crucial next step in the AI evolution.
Despite these promising developments, Salesforce’s stock has struggled in 2025, currently down about 10% year-to-date, with little change over the past year. The question now arises: Can Salesforce’s latest results indicate a potential rebound for its stock?
Agentic AI is a core part of Salesforce’s strategy, prominently featured in its Agentforce offering launched last October. This solution has quickly gained traction, with Salesforce reporting 5,000 deals closed, including 3,000 paid transactions. Agentforce provides customers with ready-made AI agents for areas like customer service and human resources and allows for customization using low-code or no-code interfaces.
Salesforce aims to enhance productivity through Agentforce, which operates on a pay-per-interaction model at $2 per task. They also leverage a network of partners, with significant contributions to sales and activations arising from this ecosystem. Notably, Salesforce is collaborating with Alphabet and Amazon to expand Agentforce’s capabilities.
In the latest fiscal quarter, Salesforce reported a revenue increase of 8% year-over-year, hitting $10 billion. Subscription revenue also rose by 8%, with earnings per share climbing 21% to $2.78. Looking ahead, the company is forecasting modest revenue growth of 7-8% for fiscal 2026.
With a forward price-to-sales ratio under 7 and a P/E ratio below 27, Salesforce appears attractively valued. If Agentforce successfully drives revenue growth, the potential for the stock to rebound could be significant. Investors might want to consider this leading AI SaaS company, given its promising valuation and future prospects.
Tags: Salesforce, CRM, Agentic AI, fiscal results, SaaS, stock performance, technology trends, investment insights
What is Agentic AI?
Agentic AI refers to advanced artificial intelligence systems that can make decisions and take actions on their own. These systems can analyze data, learn from experiences, and adapt to new situations without much human intervention.
How could Agentic AI affect Salesforce’s stock?
If Agentic AI improves Salesforce’s products, it could attract more customers and boost sales. This increase in demand may lead to a rise in Salesforce’s stock price, potentially lifting it higher over time.
What are some risks of using Agentic AI?
While Agentic AI can offer many advantages, there are risks. These include data privacy concerns, reliance on technology, and the possibility of errors in automated decision-making. If companies do not manage these risks, it could negatively impact Salesforce’s stock.
When might we see the impact of Agentic AI on Salesforce’s stock?
The effects of Agentic AI on Salesforce’s stock may not be immediate. It could take time for new technologies to be developed, adopted, and positively influence the company’s financial performance—possibly around 2025, as businesses start to see results.
Are there other factors that can influence Salesforce’s stock?
Yes, several factors can affect Salesforce’s stock price, including Market trends, competition, overall economic conditions, and the company’s financial performance. While Agentic AI plays a role, it’s just one piece of a much larger puzzle.
