Salesforce (CRM) recently released its fiscal first-quarter 2026 earnings, and the results have sparked a mix of reactions from Wall Street analysts. With the cloud software giant beating expectations and raising its full-year outlook, the sentiment is largely positive, but some skepticism remains about the pace of growth and the impact of its AI initiatives. Here’s a breakdown of what analysts are saying about Salesforce’s performance, its AI-driven Agentforce platform, and the company’s outlook for the future.
Strong Earnings Beat, But Growth Concerns Linger
Salesforce reported first-quarter revenue of $9.83 billion, an 8% year-over-year increase that surpassed analyst expectations of around $9.75 billion. Adjusted earnings per share (EPS) came in at $2.58, beating forecasts of $2.55. The company also raised its full-year revenue guidance to $41 billion–$41.3 billion, up from $40.5 billion–$40.9 billion, and boosted its adjusted EPS outlook to $11.27–$11.33, compared to prior estimates of $11.09–$11.17. Shares gained nearly 4% in after-hours trading, reflecting investor optimism about the results.
However, not all analysts are fully convinced. Some pointed out that while the headline numbers were strong, Salesforce’s core cloud segments—Sales, Service, and Marketing—showed signs of deceleration, with growth rates dropping to 7%, 7%, and 4%, respectively, compared to higher figures in prior periods. This slowdown in the company’s core businesses has raised questions about whether Salesforce can sustain high-single-digit growth without significant contributions from its newer AI and data cloud offerings.
Agentforce: A Bright Spot with Long-Term Potential
Salesforce’s AI platform, Agentforce, continues to be a focal point for analysts. Launched in September 2024, Agentforce allows clients to build custom AI agents, and the company reported closing over 8,000 deals for the technology, with half of them paid. Analysts from Morgan Stanley and Bank of America highlighted the early success of Agentforce, noting its potential to drive long-term growth. However, they cautioned that monetization is still in its infancy, with meaningful revenue contributions not expected until fiscal 2027.
Oppenheimer remains particularly bullish, calling Salesforce “one of the healthiest long-term profitable growth stories” in the software-as-a-service sector. They see Agentforce as a key driver of future revenue, especially as businesses increasingly adopt AI to enhance customer relationship management (CRM). Meanwhile, Citi analysts took a more cautious stance, lowering their price target to $320 from $335, citing the need for more data on Agentforce’s commercialization before fully endorsing its impact.
Mixed Analyst Ratings and Price Targets
The analyst community is divided on Salesforce’s stock trajectory. Of the 23 analysts tracked by Visible Alpha, 18 maintain a “buy” or equivalent rating, four have a “hold,” and one issued a “sell.” The consensus price target is around $361, suggesting a 31% upside from the stock’s intraday level of $275.13 on May 28, 2025.
Bullish Views: Needham analyst Scott Berg reiterated a “buy” rating with a $400 price target, emphasizing strong sales performance in small to mid-sized businesses. Goldman Sachs also maintained a “buy” rating with a $340 target, expressing confidence in Salesforce’s ability to navigate macro uncertainties while capitalizing on AI trends.
Bearish Perspectives: RBC downgraded Salesforce to “sector perform” from “outperform,” slashing its price target to $275 from $420. The firm cited concerns about decelerating growth in core segments and an uncertain outlook, despite the earnings beat. Other analysts, like those at JP Morgan, noted that while current remaining performance obligations (cRPO) grew 11% in constant currency—exceeding expectations of 10%—the second-quarter guidance was slightly lighter than anticipated, hinting at potential challenges ahead.
Strategic Moves and Market Position
Salesforce’s recent $8 billion acquisition of Informatica, an AI-powered data management software provider, has also drawn attention. While some analysts see this as a strategic move to bolster Salesforce’s data cloud and AI capabilities, others argue that the payoff may take time and does little to address immediate growth concerns in the core business.
Additionally, Salesforce’s focus on operational efficiency, highlighted by the appointment of Robin Washington as chief operating and financial officer, has been viewed positively. Analysts from Oppenheimer believe Washington’s leadership could further improve margins, building on the company’s efforts to streamline operations.
What’s Next for Salesforce?
Despite the mixed reactions, the overall sentiment leans optimistic, driven by Salesforce’s strong market position as the #1 AI CRM and the early promise of Agentforce. Analysts expect the company to benefit from the growing demand for AI-driven solutions, but they stress the importance of balancing innovation with growth in its core cloud offerings. The upcoming quarters will be critical for Salesforce to demonstrate that Agentforce can scale and that the core business can stabilize.
For investors, Salesforce remains a polarizing stock. Bulls see it as a long-term winner in the AI and CRM space, with significant upside potential, while bears warn that decelerating growth and macro uncertainties could cap near-term gains. As the company continues to integrate acquisitions like Informatica and expand its AI capabilities, Wall Street will be watching closely to see if Salesforce can deliver on its ambitious vision.