Salesforce (CRM): Rechecking Valuation After Strong Q3 Beat, Raised 2026 Guidance and Growing Agentforce AI Adoption

Salesforce (CRM) just delivered an upside Q3, raised its fiscal 2026 revenue outlook, and backed that up with big Agentforce wins at the U.S. Department of Transportation and DeVry University, which is why the stock has investors leaning in.

See our latest analysis for Salesforce.

Even with the latest Agentforce wins and upgraded guidance, Salesforce’s 30 day share price return of 6.6% sits against a much weaker year to date share price performance. However, the three year total shareholder return above 100% shows that long term momentum is still very much intact.

If this kind of AI driven deal flow has your attention, it could be worth exploring other high growth tech names through high growth tech and AI stocks for fresh ideas beyond Salesforce.

With the shares still trading at a meaningful discount to analyst targets despite upgraded guidance and triple digit Agentforce ARR growth, is Salesforce quietly undervalued here, or is the market already baking in its next leg of AI driven expansion?

Most Popular Narrative Narrative: 2.4% Undervalued

With Salesforce last closing at $262.23 versus a narrative fair value near $270, the story leans slightly positive and sets up a nuanced valuation case.

Salesforce (NYSE: CRM) delivered another strong quarter, proving it can grow revenue while expanding profitability, something investors have demanded for years. For Q2 fiscal 2026 (ended July 31, 2025), revenue climbed 10% year over year to $10.2 billion, with subscription and support revenue up 11% to $9.7 billion.

Read the complete narrative.

Want to see what kind of revenue runway and margin profile could justify that edge over today’s price? The narrative leans on disciplined growth and a future earnings multiple that assumes Salesforce keeps compounding profit faster than headline sales. Curious which long term cash flow assumptions really drive that fair value gap? Dive in to unpack the full story.

Result: Fair Value of $268.76 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing enterprise software budgets and intensifying AI competition from Microsoft and ServiceNow could compress Salesforce’s growth, margins, and valuation optimism.

Find out about the key risks to this Salesforce narrative.

Build Your Own Salesforce Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in under three minutes: Do it your way.

A good starting point is our analysis highlighting 3 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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