Salesforce, Inc. CRM is gaining traction with Agentforce. In the second quarter of fiscal 2027, Agentforce ARR (annual recurring revenue) exceeded $1.5 billion, jumping more than 240% year over year. Combined Agentforce and Data 360 ARR reached nearly $3.9 billion, up more than 210%. These figures show that customers are increasingly willing to pay for AI-powered tools and enterprise data capabilities.
Customer usage is also expanding quickly. Salesforce recorded 3.2 billion Agentic Work Units (AWUs) in the second quarter, up 97% sequentially. Bookings for Agentforce One Edition and Agentforce for Apps more than doubled from the previous quarter. This suggests that AI adoption is moving beyond experimentation toward broader use.
However, Agentforce is still small compared with Salesforce’s overall business. Second-quarter revenues reached $11.3 billion, up 11% year over year, while subscription and support revenues rose 12% to $10.8 billion. Current remaining performance obligation increased 14% to $33.5 billion, pointing to healthy demand ahead.
Buoyed by strong top-line performance, Salesforce raised its fiscal 2027 revenue guidance from $45.90-$46.20 billion to $46.10-$46.40 billion, implying 11%-12% year-over-year growth. It also expects subscription and support revenues to increase slightly above 12%.
Agentforce can become a meaningful growth driver, but it will take time to change Salesforce’s growth rate materially. For now, its rapid adoption strengthens the case for steady, rather than explosive, revenue acceleration. The Zacks Consensus Estimate for fiscal 2027 revenue is currently pegged at $46.22 billion, indicating an 11.3% year-over-year increase.
Salesforce’s Rivals Are Also Betting Big on AI Agents
Microsoft Corporation MSFT and Oracle Corporation ORCL are formidable competitors to Salesforce in agentic AI because both can combine AI with large enterprise software and cloud platforms.
Microsoft is expanding its AI offering through Copilot Studio and Azure AI, moving beyond simple AI assistance toward autonomous agents that can perform tasks across business applications. Microsoft 365 Copilot is already showing strong adoption. Paid seats surpassed 30 million in the fourth quarter of fiscal 2026, while net seat additions more than doubled sequentially. Customers deploying more than 50,000 seats increased more than sevenfold year over year. Azure and other cloud services revenues also jumped 43%.
Oracle is taking a more data-centric approach. Its Oracle AI Database 26ai is designed to serve as a foundation for agentic AI, while AI agents are being embedded across its Fusion Cloud applications. Oracle claims its AI architecture can reduce manual procurement work by 60-80% and lower inventory carrying costs by 15-30%. Its Multicloud AI Database revenues surged 404% year over year in the fourth quarter of fiscal 2026.
Salesforce faces strong competition from Microsoft and Oracle. Microsoft has unmatched scale across cloud and productivity software, while Oracle has deep control over enterprise data and applications. Salesforce does not need to beat its rivals everywhere. Its bigger opportunity is to make Agentforce the leading AI layer for customer relationship management solutions and turn rapid adoption into durable revenue growth.
Salesforce’s Price Performance, Valuation and Estimates
Salesforce shares have declined 6% year to date, while the Zacks Internet – Software industry has fallen 0.1%.
Salesforce YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 15.67, significantly below the industry’s average of 28.13.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 earnings implies a year-over-year increase of approximately 29.2%, while that for fiscal 2028 indicates a 2.8% decline. Estimates for fiscal 2027 and 2028 earnings have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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