By Stephen Ayers
Publication Date: 2025-11-29 20:29:00
This article first appeared on GuruFocus.
I’ll admit it: Salesforce Inc.’s (NYSE:CRM) single-digit revenue growth looks rather boring next to the AI darlings, which are posting gains of over 40%. However, I believe that a fundamental change is underway. Salesforce’s Data Cloud and Agentforce platform, which enables autonomous AI agents to manage customer service, sales tasks and workflows, just reached $1.2 billion in annual recurring revenue (ARR), with 120% year-over-year growth. In context, this is faster than introducing Slack, Tableau or Mulesoft at similar stages. While the introduction of autonomous AI agents may not be as immediately noticeable as GPU sales, Salesforce is making money in a big way. At the same time, the company is increasing operating margins to record levels. However, Salesforce’s valuation appears to be at odds with the company’s recent performance and opportunities in the agent AI space. The stock trades at 5.85 times sales, near a two-year low versus a historical median of 7.73.
