We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Agentforce in 4,000+ Deals: Can Salesforce Monetize the Momentum?
Read MoreHide Full Article
Key Takeaways
Salesforce's Agentforce has surpassed 4,000 paid deals and $100M in annualized recurring revenues.
30% of recent bookings came from repeat buyers, showing growing adoption and bundling with Data Cloud.
CRM is scaling sales teams and revamping pricing to drive faster Agentforce adoption despite tough rivals.
Salesforce's (CRM - Free Report) Agentforce platform, which uses artificial intelligence (AI) to help companies automate tasks and improve customer service, is growing quickly. In just two quarters, Salesforce has signed more than 4,000 paid deals and more than 8,000 total deployments. The product has already crossed $100 million in annualized recurring revenues, showing strong early demand.
Salesforce is witnessing a clear trend that many customers are coming back to buy more. About 30% of Agentforce bookings in the last quarter came from existing customers. This demonstrates that the product is working well for businesses and has room to grow further. Agentforce is also being bundled with other Salesforce products like Data Cloud, making each deal more valuable.
To keep this momentum, Salesforce is planning to add more salespeople and has introduced a new pricing model that makes it easier for customers to scale up. It’s also using internal teams to help customers adopt Agentforce faster.
Still, there are risks. Salesforce faces strong competition, and some large companies may take time to fully adopt the platform. However, if Salesforce can keep delivering real value to customers and continue improving the product, Agentforce could grow into a major revenue driver and help push Salesforce’s overall growth higher in the coming years.
How Competitors Stack Up Against Salesforce?
As Salesforce pushes Agentforce deeper into the enterprise, it faces strong competition from tech giants like Microsoft (MSFT - Free Report) and Oracle (ORCL - Free Report) . Microsoft has tightly integrated AI assistants, called Copilot, into its Dynamics 365 suite. Copilot leverages Microsoft’s leading position in generative AI through its partnership with OpenAI, giving it an edge in both functionality and familiarity for users already on Microsoft platforms.
Meanwhile, Oracle is embedding AI into its Fusion Cloud Applications and has recently expanded its AI infrastructure capabilities. Oracle’s strength lies in its enterprise data management and long-standing relationships in regulated industries like healthcare and finance, sectors that Salesforce is targeting with Agentforce.
While Salesforce may be the first to scale agentic AI across its full customer relationship management software stack, it must move fast. Both Microsoft and Oracle have the resources and customer bases to compete aggressively.
Salesforce’s Price Performance, Valuation and Estimates
Shares of Salesforce have plunged 20.4% year to date against the Zacks Computer – Software industry’s rise of 9.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 22.65, significantly below the industry’s average of 32.67.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 10.7% and 11.2%, respectively. The estimates for fiscal 2026 and fiscal 2027 have been revised upward in the past seven days and 30 days, respectively.
Image: Bigstock
Agentforce in 4,000+ Deals: Can Salesforce Monetize the Momentum?
Key Takeaways
Salesforce's (CRM - Free Report) Agentforce platform, which uses artificial intelligence (AI) to help companies automate tasks and improve customer service, is growing quickly. In just two quarters, Salesforce has signed more than 4,000 paid deals and more than 8,000 total deployments. The product has already crossed $100 million in annualized recurring revenues, showing strong early demand.
Salesforce is witnessing a clear trend that many customers are coming back to buy more. About 30% of Agentforce bookings in the last quarter came from existing customers. This demonstrates that the product is working well for businesses and has room to grow further. Agentforce is also being bundled with other Salesforce products like Data Cloud, making each deal more valuable.
To keep this momentum, Salesforce is planning to add more salespeople and has introduced a new pricing model that makes it easier for customers to scale up. It’s also using internal teams to help customers adopt Agentforce faster.
Still, there are risks. Salesforce faces strong competition, and some large companies may take time to fully adopt the platform. However, if Salesforce can keep delivering real value to customers and continue improving the product, Agentforce could grow into a major revenue driver and help push Salesforce’s overall growth higher in the coming years.
How Competitors Stack Up Against Salesforce?
As Salesforce pushes Agentforce deeper into the enterprise, it faces strong competition from tech giants like Microsoft (MSFT - Free Report) and Oracle (ORCL - Free Report) . Microsoft has tightly integrated AI assistants, called Copilot, into its Dynamics 365 suite. Copilot leverages Microsoft’s leading position in generative AI through its partnership with OpenAI, giving it an edge in both functionality and familiarity for users already on Microsoft platforms.
Meanwhile, Oracle is embedding AI into its Fusion Cloud Applications and has recently expanded its AI infrastructure capabilities. Oracle’s strength lies in its enterprise data management and long-standing relationships in regulated industries like healthcare and finance, sectors that Salesforce is targeting with Agentforce.
While Salesforce may be the first to scale agentic AI across its full customer relationship management software stack, it must move fast. Both Microsoft and Oracle have the resources and customer bases to compete aggressively.
Salesforce’s Price Performance, Valuation and Estimates
Shares of Salesforce have plunged 20.4% year to date against the Zacks Computer – Software industry’s rise of 9.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 22.65, significantly below the industry’s average of 32.67.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 10.7% and 11.2%, respectively. The estimates for fiscal 2026 and fiscal 2027 have been revised upward in the past seven days and 30 days, respectively.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.