Salesforce Finally Gives Investors a Reason to Rethink This Beaten-Down Stock

After spending most of 2026 in the penalty box, Salesforce (NYSE:CRM) has finally given investors a reason to rethink their stance on the beaten-down stock. The August earnings report marked a significant turning point for the company, with revenue landing at $11.35 billion, up 10.8%, and non-GAAP EPS hitting $5.90 against a $3.27 consensus, an 80.36% beat and the sixth straight.

Agentforce Monetization Drives Growth

The bull case for Salesforce rests heavily on the monetization of Agentforce, a platform that has seen its ARR (annual recurring revenue) surge to over $1.5 billion, up over 240% year over year. This growth is driven by the platform's ability to upsell premium editions to knowledge workers, with only 5% of users having upgraded so far, leaving a massive upsell runway ahead.

Combined Agentforce and Data 360 ARR is now nearly $3.90 billion, up over 210%, with CEO Marc Benioff calling it "one of our best quarters ever." The CloudForce partnership with Anthropic is also seen as a key driver of growth, with premium editions carrying a 60% to 80% premium.

Capital Returns Amplify the Setup

The accelerated share repurchase program has already pulled diluted share count to 821 million from 962 million, amplifying the setup for growth. The bull-case scenario points to $405.75 within a year, roughly 66.02% upside, assuming current growth trajectories and margin trends hold.

Why Salesforce Looks Reasonably Cheap

Despite the growth prospects, Salesforce trades at a forward P/E of 19, which is cheaper than Microsoft (NASDAQ:MSFT) at 25 and Oracle (NYSE:ORCL) at 20. This makes Salesforce look reasonably cheap, especially considering its accelerating AI product revenue.

What to Watch Next

Looking ahead, investors will be watching for signs of continued growth in Agentforce monetization, as well as the integration outcomes for Contentful, Fin, and Informatica. If CloudForce adoption and premium-edition upgrades show up in the Q3 cRPO report, it could be a strong buy signal. However, if organic revenue reacceleration slips or Informatica integration drags on FY27 margins, it could be a reason to stay on the sidelines.

Yearly Projections

Our model projects Salesforce could trade at the following prices, assuming current growth trajectories and margin trends hold:

  • 2026: $273.96
  • 2027: $366.61
  • 2028: $478.03
  • 2029: $586.10
  • 2030: $665.17

These projections assume Salesforce executes on its $63 billion FY30 revenue target. Significant upside or downside could result from Agentforce monetization pace and integration outcomes for Contentful, Fin, and Informatica.