From Yahoo Finance: 2025-04-25 10:30:00

Salesforce (CRM) revenue growth is slowing, with FY2025 revenue at $37.9 billion, up 8.7% YoY, a decline from previous years. FY2026 projects $40.1 billion revenue, a 7.4% growth rate, below Wall Street estimates. However, Salesforce is boosting profitability, with an operating margin of 33.1% and plans to reach 34% in FY26.

Salesforce’s new AI Agentforce platform is gaining traction, closing 5,000 deals since October 2024, including clients like Pfizer and Singapore Airlines. The company’s Data Cloud has doubled data processing to 50 trillion records, positioning Salesforce for AI-driven growth and expanding its customer base vertically.

Despite a stock drop due to a growth slowdown and Trump tariffs, Salesforce’s cloud-based software model shields it from supply chain issues. With 3/4 of revenue from the Americas, Salesforce’s valuation at 22.5x expected EPS presents a buying opportunity. Analysts forecast double-digit EPS growth through 2028, making the stock appealing.

Salesforce’s stock is currently rated as a Moderate Buy, with a consensus price target of $362.35, implying a 38.5% upside potential. While revenue growth is slowing, Salesforce’s focus on profitability, AI innovations, and attractive valuation make it a compelling investment opportunity for those willing to ride out short-term challenges.

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