Salesforce Bets Big on Agentforce: Will Adoption Drive Revenues?

Salesforce, Inc. CRM is enhancing its artificial intelligence (AI) capabilities through its Agentforce platform. In the last reported financial results for the second quarter of fiscal 2026, the company’s revenues and non-GAAP earnings per share (EPS) increased 10% and 13.7%, respectively, on a year-over-year basis. One of the main drivers behind this momentum has been the growing adoption of Salesforce’s AI-driven agent platform, Agentforce.Agentforce has secured more than 6,000 paid deals since its launch just three quarters ago, indicating strong demand for AI tools that enhance enterprise workflows. Also, the company noted that 40% of new Agentforce bookings in the second quarter came from existing Salesforce customers expanding their usage.All this indicates strong early adoption and confidence in the Agentforce platform’s value. Customers are moving rapidly from pilot programs to full production. It should be noted that Salesforce witnessed a 60% increase in customers scaling Agentforce use quarter over quarter.The consumption-based model, supported by newly introduced flexible payment options such as Flex Credits, is fueling demand for the Agentforce platform. This model can potentially drive recurring revenue growth over time, providing visibility and durability to Salesforce’s top line.With AI and Data Cloud annualized recurring revenues already reaching $1.2 billion, Salesforce is building a meaningful growth engine. If the adoption of Agentforce continues at the current pace, the platform could be a key driver of Salesforce’s revenue growth while reinforcing its leadership in enterprise software. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates a year-over-year increase of 10.8% and 8.8%, respectively.How Are Competitors Faring Against Salesforce’s Agentforce?Microsoft Corporation MSFT and ServiceNow, Inc. NOW are also pushing AI automation in the enterprise market.Microsoft has integrated strong AI features into its Dynamics 365 platform through its Copilot tools, simplifying tasks such as writing emails, creating reports and summarizing meetings for users. Since many companies already use Microsoft products, integrating Copilot into their existing workflows is simple and cost-effective.ServiceNow’s Now Assist platform uses AI to automate IT service management, customer support and human resource management tasks. ServiceNow has been rolling out industry-specific AI tools, similar to what Salesforce is doing with Agentforce.Salesforce’s Price Performance, Valuation and EstimatesShares of Salesforce have plunged 27.7% year to date against the Zacks Computer – Software industry’s growth of 12.8%.Salesforce YTD Price Return PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 19.57, significantly below the industry’s average of 30.3.Salesforce Forward 12-Month P/E RatioImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Salesforce’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 11.4% and 11.3%, respectively. Estimates for fiscal 2026 have been revised upward in the past 60 days, while forecasts for fiscal 2027 have been lowered over the past 30 days.Image Source: Zacks Investment ResearchSalesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Salesforce Inc. (CRM): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks