Here’s something worth sitting with for a moment. Salesforce just reported record revenue of $41.5 billion for fiscal year 2026, beat earnings estimates by 24%, and watched its stock fall 33% anyway.
That’s not a broken company. That’s a transition.
The market is punishing Salesforce right now for a very specific reason: the old model — one seat, one license, one human — is visibly cracking. AI agents are starting to do the work that those seats were paying for. Fewer headcount at an enterprise customer can mean fewer Salesforce subscriptions. Wall Street sees that risk. It’s priced it in, hard.
What the market may be underpricing is what comes next.
Salesforce’s Agentforce platform — the company’s bet on autonomous AI agents that don’t just answer questions but actually execute work — reached a $1.2 billion annual run rate as of the most recent quarter. That’s a number that didn’t exist two years ago. And it’s growing fast. Agentforce and Data 360 reached $2.9 billion in AI and data ARR, growing more than 200% year over year through Q4 FY2026. The company has now closed more than 29,000 Agentforce deals, with customers including Amazon, Ford, AT&T, and GM.
Slight tangent, but it matters: Salesforce also just signed a definitive agreement to acquire m3ter, a usage-based billing infrastructure company. That move is deliberate. You can’t charge by AI work unit — which is the new pricing model — without the back-end plumbing to meter and invoice it at scale. CEO Marc Benioff isn’t just talking about the shift to outcome-based pricing. He’s buying the infrastructure to actually execute it.
The pivot is real. Whether the revenue follows fast enough is the open question.
What the numbers say right now
Fiscal Q1 FY2027 revenue came in at $11.13 billion, up 13% year over year, beating analyst expectations. Adjusted EPS hit $3.88, well above consensus of $3.12. The company’s current remaining performance obligation — essentially contracted future revenue scheduled to be recognized within the next 12 months — sits at $33.6 billion, up 14% year over year. That’s not a business falling apart. That’s a business in the middle of repricing itself.
Full-year FY2027 guidance was set at $45.9 billion to $46.2 billion, implying roughly 10-11% growth. Management has been explicit: they expect revenue to reaccelerate in the back half of FY2027 as Agentforce bookings scale and enterprise AI adoption deepens.
The stock currently trades around $165 to $186 depending on the day — a range that has Wall Street analysts pointing to a median price target around $255, implying roughly 37% upside from current levels. The bull end of the range runs as high as $475.
The harder question
Investors are right to be skeptical about timing. Enterprise software spending has been soft across the board. Microsoft, Oracle, and ServiceNow have all flagged that AI-driven deals are taking longer to close as procurement teams adjust. And Salesforce’s guidance for Q2 landed below Wall Street’s consensus, which gave sellers a clean reason to push the stock lower.
There’s also competitive pressure from hyperscalers and AI-native platforms that could chip away at traditional CRM demand before Agentforce scales to replace it. Bank of America has a bear case at $160. That’s not a fringe view.
But here’s what I keep coming back to: the usage numbers inside Agentforce are accelerating fast. The platform delivered 3.8 billion Agentic Work Units in Q1 FY2027, up 111% quarter over quarter. Slack Agentic Work Units grew nearly 350% sequentially. The company processed 28.6 trillion tokens in a single quarter. That’s activity — and historically, activity that scale eventually converts to revenue.
The business is not broken. It’s being rebuilt in real time, at enterprise scale, in front of everyone. The discount on the stock may be reflecting the mess of the transition more than the destination.
Worth a closer look before the second half reacceleration either shows up — or doesn’t.
This editorial is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. All data referenced was sourced from publicly available filings and analyst reports as of June 2026. Past performance is not indicative of future results. Investing in individual stocks involves risk, including the possible loss of principal. Always conduct your own due diligence before making any investment decision.