- Earlier this week, Salesforce reported past second-quarter results showing revenue of US$11.35 billion and net income of US$3.53 billion, while also raising its full-year outlook and highlighting rapid uptake of AI products such as Agentforce and Slackbot.
- At the same time, Salesforce and Anthropic expanded their partnership with the launch of Claudeforce, embedding Claude deeply into Salesforce’s data and workflows to power AI agents across Salesforce, Slack, and third-party tools via AIforce.
- We’ll now examine how Salesforce’s stronger AI-driven quarter, including the Claudeforce launch with Anthropic, reshapes its longer-term investment narrative.
Capitalize on the AI infrastructure supercycle with our selection of the 56 best ‘picks and shovels’ of the AI gold rush converting record-breaking demand into massive cash flow.
Salesforce Investment Narrative Recap
To own Salesforce, you have to believe its core CRM and data cloud will remain the system of record that enterprise AI agents plug into, rather than replace. The latest quarter, with US$11.35 billion in revenue, stronger earnings and a higher full year outlook, suggests AI is currently a tailwind. The key near term catalyst is continued AI driven ARR growth, while the biggest risk is that fast evolving AI platforms still compress pricing power and margins over time.
The Claudeforce launch with Anthropic is the clearest near term proof point for that AI driven thesis. By wiring Claude directly into Salesforce data, workflows and Slack via AIforce, it reinforces the idea that AI agents sit on top of, and depend on, Salesforce’s existing stack. That supports the catalyst of larger agentic contracts and higher customer stickiness, but also puts a spotlight on the integration and governance risks if Salesforce’s acquisitions and expanding ecosystem do not execute cleanly.
Yet behind the upbeat AI story, investors should be aware that rising competition and pricing pressure could still…
Read the full narrative on Salesforce (it’s free!)
Salesforce’s narrative projects $56.7 billion revenue and $10.3 billion earnings by 2029. This requires 9.8% yearly revenue growth and a $2.3 billion earnings increase from $8.0 billion today.
Uncover how Salesforce’s forecasts yield a $241.72 fair value, a 6% downside to its current price.
Exploring Other Perspectives
Before this news, the most optimistic analysts were assuming Salesforce could reach about US$59.8 billion of revenue and US$11.7 billion of earnings by 2029, so if you lean toward that view, Claudeforce may look like early validation of a much faster AI driven lock in story than the baseline narrative suggests.
Explore 24 other fair value estimates on Salesforce – why the stock might be worth 6% less than the current price!
Decide For Yourself
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
- A great starting point for your Salesforce research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
- Our free Salesforce research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Salesforce’s overall financial health at a glance.
Searching For A Fresh Perspective?
Right now could be the best entry point. These picks are fresh from our daily scans. Don’t delay:
- The future of work is here. Discover the 38 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation.
- The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 18 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
- AI is about to change healthcare. These 39 stocks are working on everything from early diagnostics to drug discovery. The best part – they are all under $10b in market cap – there’s still time to get in early.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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MI
mitchell_lawler
The Foxhole
A landmark settlement is meant to punish Meta (META). If the 1998 tobacco deal is any guide, it might protect it.
Any moat with an opt-out clause for your competitors is just a fence around your own garden.
Worth looking at what previous legal action actually did to Meta rather than reaching for tobacco. The FTC’s record five billion dollar privacy fine in 2019 was met with the stock rising, because it came in below fears and removed an open question. GDPR was designed to constrain large platforms and increased their share of the European ad market, because compliance cost fell hardest on small intermediaries. The FTC’s antitrust case, the one that could genuinely have broken the company up, was decided in Meta’s favour last November. The only thing that ever meaningfully hurt the business was Apple changing a tracking default, and Meta out-spent that too, while the ad-tech firms that could not afford to rebuild disappeared. The pattern is not that Meta survives regulation. It is that regulation keeps costing its smaller competitors more.
Great earnings season, but are the earnings real?
At first glance, this was the strongest earnings season in years. But when you look at where the growth actually came from, the story splits into two very different pictures.
10
Aug 28, 2026
About NYSE:CRM
Salesforce
Provides customer relationship management technology services that connect companies and customers together in the United States, Europe, and the Asia Pacific.
Undervalued with proven track record.
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