Salesforce, Inc. CRM is seeing strong momentum in Data 360, previously known as Data Cloud, positioning it as a key driver of its next growth phase. The platform helps companies unify customer data across systems, creating a single, real-time view that supports better decision-making and automation.
The Data 360 platform is part of Salesforce’s broader ecosystem focused on artificial intelligence (AI), data and collaboration to cope with the slowing top-line growth trend. For years, the company has delivered strong double-digit revenue increases. However, that pace has cooled to single digits over the past two fiscal years. In fiscal 2025 and 2026, CRM registered top-line growth of 8.7% and 9.6%, respectively.
Salesforce’s Data 360 is anticipated to play a crucial role in sales growth revival. The company is integrating the Data 360 platform with its other AI tools, like Agentforce and Mulesoft. These integrations are helping enterprises easily analyze their data and apply AI across operations. This could drive higher-value contracts for Salesforce, aiding top-line growth.
The growth numbers highlight this traction. During the fourth quarter of fiscal 2026, the combined Data 360 and Agentforce annual recurring revenues crossed $2.9 billion, representing a 200% year-over-year increase. This makes it one of the fastest-growing segments in the company’s portfolio. More than 75% of the top 100 deals in the last reported quarter included both Data 360 and AI capabilities, showing strong enterprise demand.
Data 360 also supports larger deal sizes and stronger customer retention. As clients adopt multiple Salesforce products, switching costs increase, helping the company maintain long-term relationships and steady revenue streams. Overall, Data 360 has strong adoption and strategic importance. If this momentum continues, it can play a major role in powering Salesforce’s next growth phase. The Zacks Consensus Estimate for fiscal 2027 and 2028 indicates that revenues will increase 10.9% and 9.3%, respectively, year over year.
Salesforce’s Rivals in Data Cloud Space
Salesforce faces intensified competition from Microsoft Corporation MSFT and Snowflake Inc. SNOW in the data cloud space.
Microsoft offers data services through its Azure Data platform. The company has already integrated the platform with its other productivity tools, including Power Platform, Dynamics 365 and Copilot AI, to enhance user experience and attract new clients. Many companies already use Microsoft’s cloud and productivity software, making it easy to add its data services.
Snowflake is another major competitor, known for its powerful cloud-based data warehouse. Unlike Salesforce, Snowflake focuses only on data, allowing companies to store, process and share large volumes easily. It also supports multiple clouds and has strong analytics tools.
Salesforce’s Price Performance, Valuation and Estimates
Shares of Salesforce have plunged 28.2% over the past year, while the Zacks Internet – Software industry has risen 6.3%.
Salesforce One-Year Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 13.21, significantly below the industry’s average of 27.19.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 4.9% and 11.9%, respectively. Estimates for fiscal 2027 and 2028 have been revised upward in the past 60 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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This article originally published on Zacks Investment Research (zacks.com).