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Salesforce (CRM): Evaluating Valuation After Earnings Beat, Strong Buyback, and New AI Agent Strategy

Reviewed by Kshitija Bhandaru
Salesforce (CRM) just posted earnings that beat expectations, with strong growth in subscription revenues and a boost to its share buyback program. The company also showcased progress in its AI strategy by shifting toward specialized agents instead of broad language models.
See our latest analysis for Salesforce.
Salesforce continues to make headlines, from its expanded AI partnerships to a fresh $20 billion share repurchase authorization and a new shelf registration. Yet, momentum has not translated into recent gains. The stock’s share price has softened this year, and while the 1-year total shareholder return sits just below zero, long-term investors who stayed the course over the past three years have still enjoyed a respectable positive return. Overall, optimism about Salesforce’s AI strategy is high, but the market is clearly waiting to see sustained payoff in results.
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With Salesforce trading well below analyst price targets and boasting a pipeline of AI-driven innovation, is Wall Street overlooking its upside, or is all that future growth already reflected in the current share price?
Most Popular Narrative: 28% Undervalued
The prevailing narrative pins Salesforce’s fair value at $334.68, over $90 above the latest closing price of $239.74. The gap between consensus projections and market action is drawing sharp interest as investors weigh whether current momentum is setting up for a rebound or signaling caution.
The extension of SaaS via natively embedded workflow automation, cross-cloud data harmonization, and conversational interfaces (e.g., Slack-first ITSM and HR agents) increases customer stickiness, protects against commoditization, and raises switching costs. This lays the foundation for sustainable long-term revenue and margin enhancement.
Curious what powers this huge valuation gap? The secret lies in aggressive growth forecasts and bold margin expansion assumptions. Find out which financial levers could transform Salesforce’s future and unpack the full story behind this ambitious price target.
Result: Fair Value of $334.68 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, accelerating competition and disruptive low-code platforms could put pressure on Salesforce’s growth story. This underscores the uncertainty still facing the stock today.
Find out about the key risks to this Salesforce narrative.
Build Your Own Salesforce Narrative
If you see things differently or want to dig into the numbers yourself, you can craft your personal Salesforce narrative in just a few clicks using the following link: Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Salesforce.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About NYSE:CRM
Salesforce
Provides customer relationship management (CRM) technology that connects companies and customers together worldwide.
Excellent balance sheet and good value.
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