Analysts revamp Salesforce stock forecast after key meeting

Salesforce is a company that has its software as a service, customer relationship management (CRM) platform as its core business, but also owns Slack and many other platforms.

The company has been working on artificial intelligence for quite some time, and is now focused on promoting its agentic AI platform, which it calls Agentforce.

AI agents are supposed to be able to do everything from support to sales. The company recently removed the search feature from Salesforce Help and replaced it with Agentforce.

This move caused a pretty angry response from its customers on its ideaexchange site, and the company quickly responded that it will bring back search, currently slated to go live on November 15. 

Any investor should remember that AI agents can't replace a simple search.

The company has also revealed its plans to enter a new market.

"In a sit-down interview with Jim Cramer in San Francisco on October 14, 2025, during the Dreamforce 2025 conference, Benioff revealed that Salesforce is moving into IT service management (ITSM) with its Agentforce agentic IT service. He considers this more of a platform play, leveraging the company's existing footprint," writes Moz Farooque for TheStreet.

Salesforce Q2 revenue grows 10% to $10.2 billion year over year

On September 3, Salesforce CRM reported its results for Q2 of fiscal 2026.

"We delivered an outstanding quarter to close out the first half of the year, with strong performance across revenue, margin, cash flow, and cRPO—and we remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow," said Marc Benioff, chair and CEO, Salesforce.

Here are the earnings highlights:

• Revenue of $10.2 billion, up 10% year-over-year
• Operating margin of 22.8% 
• Net income of $1.9 billion, up 32% YoY

The company provided an outlook for Q3/full fiscal year 2026:

• Q3 Revenue of $10.24 billion to $10.29 billion
• Full year operating margin of 21.2%
• Full year operating cash flow growth of 12% to 13% YoY

Bank of America analysts say new pricing could improve Agentforce adoption

Bank of America analysts Brad Sills and Matt Bullock updated their opinions on Salesforce shares after attending Salesforce's analyst day at the Dreamforce conference in San Francisco.

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Analysts said discussions with more than ten Salesforce partners suggest stable to improving demand for Sales and Service Clouds with gradual pipeline builds for Agentforce.

They raised their estimates for fiscal year 2027 and 2028, for free cash flow (FCF) to $16.2 billion (+2.5%) and $18.5 billion (+3.7%). Analysts noted that Salesforce introduced a more flexible pricing and packaging strategy for Agentforce.

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The company's Agentic Enterprise Licensing Agreements (AELA) provide unlimited consumption for Agentforce, Data Cloud, and Mulesoft.  Silis said that the introduction of AELAs is likely to catalyze adoption, and that they also have the potential to accelerate progress towards more widespread agent deployments and a larger stable of Lighthouse customers. 

Analysts noted downside risk factors for Salesforce: 

• Competition from point solutions and platform vendors 
• Salesforce's history of acquisitions could present a higher degree of execution risk, given the need to continuously integrate the acquired technologies 
• Cyclical nature of enterprise application spending, and tariff-induced reductions in demand represent risks to topline growth.

Sills reiterated a buy rating, with a target price of $325, based on an enterprise value to FCF ratio multiple of 19.1x his FCF estimate for calendar year 2026. 

Key takeaways:

• Salesforce Q2 revenue increased 10% YoY to $10.2 billion
• Analysts reiterated a buy rating and the target price of $325
• Analysts raised estimates for FCF to $16.2 billion in fiscal 2027

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