Can Salesforce’s Data 360 Momentum Drive Stronger FY27 Growth?
CRM
Salesforce, Inc.CRM is strengthening its artificial intelligence (AI) strategy by expanding Data 360, its unified data platform that helps businesses connect customer information across applications. As enterprises invest more in AI, high-quality and connected data has become essential, making Data 360 an increasingly important growth driver for Salesforce in fiscal 2027.
The platform is benefiting from the company’s broader AI initiatives, especially Agentforce. During the first quarter of fiscal 2027, Salesforce reported that combined AI and data annual recurring revenues (ARR), including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion. This reflects a whopping 200% year-over-year surge. The company also noted that 50% of Agentforce and Data 360 bookings came from existing customers expanding their spending, highlighting strong cross-selling opportunities within its installed customer base.
The recently completed Informatica acquisition further strengthens Salesforce’s Data 360 by improving data integration, governance and management capabilities. Management expects the combination to help customers move AI projects from pilot stages to enterprise-wide deployment, creating additional revenue opportunities. The company also stated that Informatica contributed to first-quarter revenue outperformance and that integration synergies are already emerging.
Salesforce’s financial performance reflects this momentum. First-quarter fiscal 2027 revenues increased 13% year over year to $11.13 billion, while current remaining performance obligations (cRPO) climbed about 14% to $33.6 billion. Management also raised the lower end of its fiscal 2027 revenue guidance to $45.9-$46.2 billion from $45.8-$46.2 billion projected earlier.
With enterprises increasingly linking AI success to trusted data, Data 360 is becoming a key differentiator for Salesforce. Continued adoption, combined with deeper customer expansion and AI demand, could support stronger revenue growth throughout fiscal 2027 and beyond. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $46.09 billion, indicating a year-over-year increase of approximately 11%.
How Do Rivals Fare Against CRM in AI Enterprise Space?
Two major competitors of Salesforce in the AI-powered enterprise software market areMicrosoft CorporationMSFT andOracle CorporationORCL. Both are aggressively investing in AI to capture enterprise spending.
Microsoft is leveraging its strong position in cloud computing and business software through Dynamics 365 and its partnership with OpenAI. In the third quarter of fiscal 2026, Microsoft’s Azure and other cloud services revenues grew 40% year over year, while its AI business surpassed an annual revenue run rate of $37 billion, surging 123% year over year.
The company continues to embed AI copilots across its software portfolio, helping customers automate sales, service and workflow processes. Microsoft’s massive installed base of Office and Azure customers provides a strong channel for AI adoption, making it a formidable competitor to Salesforce’s Agentforce platform.
Oracle is also strengthening its AI capabilities through Oracle Cloud Infrastructure (OCI) and Fusion applications. In the fourth quarter of fiscal 2026, Oracle’s total cloud revenues increased 47% year over year to $9.9 billion. OCI revenues surged 93% to $5.8 billion, reflecting strong demand for AI workloads and enterprise applications.
Oracle is integrating AI agents across its ERP (Enterprise Resource Planning), customer experience and database products, allowing customers to automate business functions. Its growing cloud business and deep enterprise relationships position Oracle as a key challenger as companies increase spending on AI-driven software solutions.
Salesforce’s Price Performance, Valuation and Estimates
Shares of Salesforce have plunged 38.4% year to date, while the Zacks Internet – Software industry has fallen 12.8%.
Salesforce YTD Price Return Performance
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 11.11, significantly below the industry’s average of 25.65.
Salesforce Forward 12-Month P/E Ratio
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 12.8% and 9.7%, respectively. Estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.
Salesforce currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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