Tue, September 29, 2026 at 1:00 PM UTC
Quick Read
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Salesforce (CRM) trades at just 14x forward earnings despite Agentforce and Data Cloud ARR surging 210% YoY to nearly $3.9B, supporting a $348 price target.
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Microsoft (MSFT) trades at 25x and ServiceNow (NOW) at 28x forward earnings, yet CRM would still trade below both peers even at our $348 bull target.
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A $25B buyback at an average $176 per share should shrink diluted shares from 962M to 821M, amplifying EPS growth as Agentforce scales.
The 24/7 Wall St. price target for Salesforce (NYSE:CRM) is $348.23. The target implies 48.76% upside from the $234.08 close, and our model rates the stock a buy with high confidence.
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Price Target from 24/7 Wall St. |
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Salesforce trades at 14x forward earnings while combined Agentforce and Data 360 ARR reached nearly $3.9B, up over 210% year over year. Coupling hypergrowth AI revenue with a value multiple is why we see CRM as the cheapest way to own enterprise AI software.
A Post-Earnings Rally Still Leaves Salesforce Down for 2026
CRM gained 14.02% over the past month but slid 1.64% last week and remains down 11.04% year to date. Shares sit about 12.6% below the $267.80 52-week high and roughly 60.3% above the $146.06 low.
The Q2 FY27 earnings report on August 26 lit the trigger. Revenue of $11.345B rose 10.83%, exceeding the $11.316B consensus. Non-GAAP EPS of $5.90 beat the $3.27 estimate, although strategic investment gains added roughly $2.53 per share.
Management raised FY27 non-GAAP EPS guidance to $16.67-$16.71 from $14.06-$14.12. CEO Marc Benioff said, “We just delivered one of our best quarters ever.” At the September 16 Investor Day, Salesforce repeated its FY30 revenue target of $63B.
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Why Bulls See $388 Within Reach
Agentforce ARR alone topped $1.5B, up over 240%. Only 5% of Sales and Service knowledge workers have moved to higher-end editions, which carry a 60% to 80% premium, so there is a long room for upgrades.
A $25B accelerated buyback at an average of $176 per share should cut diluted shares to about 821M from 962M. Our bull case lands at $388.36. Wall Street’s consensus target is $281.08, backed by 34 Buy and 6 Strong Buy ratings.
Debt and AI Pilots Could Cap the Upside
Noncurrent debt rose to $39.3B from $10.4B, restructuring charges reached $94M versus $4M, and FY27 free cash flow growth is guided to only 4-5%. Management also granted that many customers have only run pilot programs or failed experiments.
The counterpoint is that the debt paid for buybacks below today’s price, while net debt/EBITDA of 0.78 and 27.5x interest coverage still look healthy. The bear case of $283.20 sits above the current price.
Microsoft and ServiceNow Charge Far More for AI Growth
Microsoft (NASDAQ:MSFT) competes head-on with Salesforce, opposing Copilot against Agentforce. It trades at 25x forward earnings with 17.7% revenue growth.
ServiceNow (NYSE:NOW) is the closest pure play on agentic workflows. It grows faster at 24%, but trades at 28x forward and 85x trailing earnings.
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Quarterly Revenue Growth (YoY) |
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At our target, CRM would trade at about 23x forward EPS, which is still below both peers. The peer group makes the 24/7 Wall St. price target look reasonable.
Salesforce Price Prediction 2026-2030
Our 24/7 Wall St. price target of $348.23 carries a buy rating at 90% confidence. What tips the scale is a discounted multiple coupling with 14% cRPO growth.
The thesis gets stronger if organic revenue reaccelerates in the second half as management expects. It weakens if Agentforce deployments stall at the pilot programs stage or buyback-related leverage starts to pressure cash flow.
These projections assume Salesforce keeps working toward its $63B FY30 revenue goal. Faster Agentforce adoption could push results higher, and a stumble integrating Informatica could pull them lower.
Contacteditorial@247wallst.comfor any questions or corrections.
