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Salesforce's Agentforce ARR Tops $1B: Can It Fuel More Growth for CRM?
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Key Takeaways
Salesforce's Agentforce ARR surpassed the $1B milestone in Q1'27, up 205% year over year.
Salesforce processed 28.6T AI tokens (up 152% QoQ) and 3.8B Agentic Work Units (up 111%).
CRM's combined ARR for Agentforce, Data 360 and Informatica Cloud reached $3.4B (up 200% YoY).
Salesforce, Inc. (CRM - Free Report) has reached an important milestone in its artificial intelligence (AI) journey. During the first-quarter fiscal 2027 results, the company disclosed that annual recurring revenues (ARR) from the Agentforce platform surpassed $1 billion, highlighting growing demand for AI-powered automation across its customer base. Overall, the Agentforce platform’s ARR jumped 205% year over year to $1.2 billion in the first quarter, suggesting that the AI strategy is becoming a meaningful growth driver for CRM.
Agentforce is designed to help businesses automate customer service, sales, marketing and operational tasks using AI agents. The platform is gaining traction among enterprises looking to improve productivity and reduce manual work. During the first quarter of fiscal 2027, Salesforce processed 28.6 trillion AI tokens, up 152% sequentially, while Agentic Work Units rose 111% to 3.8 billion. These figures indicate rising customer engagement with the platform.
Salesforce’s broader AI ecosystem is also expanding rapidly. Combined AI and data ARR, including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion, reflecting a 200% year-over-year surge. The company noted that half of Agentforce and Data 360 bookings came from existing customers who expanded their spending, demonstrating strong cross-selling opportunities.
The AI momentum helped Salesforce deliver solid first-quarter results. Revenues increased 13% year over year to $11.13 billion, while current remaining performance obligations climbed roughly 14% to $33.6 billion. The company also secured a record 98 deals worth more than $1 million in annual contract value during the quarter.
With Agentforce ARR already exceeding $1 billion and adoption accelerating, Salesforce appears well-positioned to drive higher customer spending and support long-term revenue growth. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $46.08 billion, indicating a year-over-year increase of approximately 11%.
How Do CRM’s Rivals Compare in the Enterprise AI Race?
Two major competitors of Salesforce in the AI-powered customer relationship management market are Microsoft Corporation (MSFT - Free Report) and Oracle Corporation (ORCL - Free Report) . 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, growing 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 third quarter of fiscal 2026, Oracle’s total cloud revenues increased 44% year over year to $8.9 billion. OCI revenues surged 84% to $4.9 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 24.2% year to date, while the Zacks Internet – Software industry has fallen 4.7%.
Salesforce YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 14.56, significantly below the industry’s average of 28.82.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 6.6% and 12.2%, respectively. Estimates for fiscal 2027 and 2028 have remained unchanged over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Salesforce's Agentforce ARR Tops $1B: Can It Fuel More Growth for CRM?
Key Takeaways
Salesforce, Inc. (CRM - Free Report) has reached an important milestone in its artificial intelligence (AI) journey. During the first-quarter fiscal 2027 results, the company disclosed that annual recurring revenues (ARR) from the Agentforce platform surpassed $1 billion, highlighting growing demand for AI-powered automation across its customer base. Overall, the Agentforce platform’s ARR jumped 205% year over year to $1.2 billion in the first quarter, suggesting that the AI strategy is becoming a meaningful growth driver for CRM.
Agentforce is designed to help businesses automate customer service, sales, marketing and operational tasks using AI agents. The platform is gaining traction among enterprises looking to improve productivity and reduce manual work. During the first quarter of fiscal 2027, Salesforce processed 28.6 trillion AI tokens, up 152% sequentially, while Agentic Work Units rose 111% to 3.8 billion. These figures indicate rising customer engagement with the platform.
Salesforce’s broader AI ecosystem is also expanding rapidly. Combined AI and data ARR, including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion, reflecting a 200% year-over-year surge. The company noted that half of Agentforce and Data 360 bookings came from existing customers who expanded their spending, demonstrating strong cross-selling opportunities.
The AI momentum helped Salesforce deliver solid first-quarter results. Revenues increased 13% year over year to $11.13 billion, while current remaining performance obligations climbed roughly 14% to $33.6 billion. The company also secured a record 98 deals worth more than $1 million in annual contract value during the quarter.
With Agentforce ARR already exceeding $1 billion and adoption accelerating, Salesforce appears well-positioned to drive higher customer spending and support long-term revenue growth. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $46.08 billion, indicating a year-over-year increase of approximately 11%.
How Do CRM’s Rivals Compare in the Enterprise AI Race?
Two major competitors of Salesforce in the AI-powered customer relationship management market are Microsoft Corporation (MSFT - Free Report) and Oracle Corporation (ORCL - Free Report) . 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, growing 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 third quarter of fiscal 2026, Oracle’s total cloud revenues increased 44% year over year to $8.9 billion. OCI revenues surged 84% to $4.9 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 24.2% year to date, while the Zacks Internet – Software industry has fallen 4.7%.
Salesforce YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 14.56, significantly below the industry’s average of 28.82.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 6.6% and 12.2%, respectively. Estimates for fiscal 2027 and 2028 have remained unchanged over the past seven days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.