As Salesforce (NYSE: CRM) prepares to announce its second-quarter fiscal 2026 earnings on September 3, 2025, investors are keenly focused on two key areas: accelerated revenue growth and the traction of its artificial intelligence (AI) initiatives, particularly the Agentforce platform. With the stock trading at $253.25 as shown in the finance card above, down 25% year-to-date and significantly trailing peers like Oracle, expectations are high for Salesforce to demonstrate a rebound in growth and capitalize on its AI-driven transformation. This report synthesizes recent developments, financial expectations, and market sentiment surrounding Salesforce’s performance.
Financial Expectations and Stock Performance
Analysts are optimistic about Salesforce’s Q2 results, projecting non-GAAP earnings per share (EPS) of $2.78, an 8.2% increase from $2.56 in the year-ago quarter, on revenue of $10.14 billion, up approximately 8% year-over-year. These figures follow a strong Q1 fiscal 2026, where Salesforce reported $9.8 billion in revenue (up 8% year-over-year) and a current remaining performance obligation (cRPO) of $29.6 billion, up 12%. For the full fiscal year 2026, Salesforce has forecasted revenue between $40.5 billion and $40.9 billion, though this falls short of analyst expectations of $41.46 billion, raising concerns about growth deceleration.
The finance card above shows Salesforce’s stock closing at $253.25 on September 2, 2025, with a daily range of $248.802 to $257.479 and a year-to-date low of $226.48 and high of $369.0. This reflects a significant decline from its peak, making it the worst performer among large-cap tech stocks and the second-steepest decliner in the Dow, only behind UnitedHealth. Investors, including activist firm Starboard Value, which boosted its stake by 47% in Q2 2025, are pressing for improved sales and profitability following years of high-cost acquisitions and workforce expansion.
AI Initiatives: Agentforce in the Spotlight
Salesforce’s AI strategy, particularly its Agentforce platform, is a focal point for investors seeking signs of scalable growth. Agentforce, an autonomous AI tool for customer service, has shown early promise since its general availability in October 2024. CEO Marc Benioff reported that it achieved $100 million in annualized revenue within months and closed 8,000 deals, half of which are paid, demonstrating rapid adoption. Notable clients like OpenTable, which saw a 50% improvement in handling restaurant web queries, and Goodyear, which enhanced field service efficiency, highlight Agentforce’s potential to drive productivity.
However, analysts like Michael Turrin of Wells Fargo caution that Agentforce’s $100 million run rate is not yet significant enough to materially impact Salesforce’s $34.9 billion annual revenue, given the company’s scale. Investors hope for updates on Agentforce’s scalability and pricing power, as it could command higher rates than Salesforce’s Service Cloud, potentially boosting margins. The Data Cloud, growing 90% year-over-year to nearly $400 million in Q4 fiscal 2025, is another critical AI-related driver, enabling enterprises to integrate data for AI model training.
Salesforce’s AI push extends beyond Agentforce. Acquisitions like Informatica for $8 billion (set to close in fiscal 2027) and Convergence.ai aim to enhance data management and AI agent capabilities, reinforcing Salesforce’s position in the enterprise AI market. Benioff has emphasized that AI already handles 30% to 50% of Salesforce’s internal operations, from engineering to customer service, signaling confidence in its technology.
Challenges and Risks
Despite the AI optimism, Salesforce faces headwinds. A tough macroeconomic environment and slower deal cycles among smaller businesses could limit growth, as noted by Nasdaq analysts. The company’s fiscal 2026 guidance, projecting first-quarter revenue of $9.71 billion to $9.76 billion against analyst expectations of $9.91 billion, disappointed markets, contributing to stock volatility. Additionally, professional services revenue grew only 1% in Q4 fiscal 2025 to $542 million, reflecting cautious client spending.
Salesforce’s high valuation—trading at 7 times enterprise value/sales and a 29 times adjusted price/earnings multiple for fiscal 2026—raises concerns about overpricing, especially if AI-driven revenue growth does not accelerate. The company’s history of acquisitions, including the $27.1 billion Slack purchase, has drawn scrutiny from activists for integration risks, though recent cost-cutting (9,000 jobs eliminated since 2022) and a first-ever dividend of $0.40 per share signal shareholder-friendly moves.
Investor Sentiment and Market Outlook
Investor confidence is mixed but cautiously optimistic. Vulcan Value Partners, holding $300 million in Salesforce stock, views the company’s value per share as robust, citing its long-term growth potential. Morgan Stanley reports that Salesforce’s core Sales and Service Clouds are performing steadily, with subscription revenue expected to hit $7.9 billion this fiscal year, though Marketing and Commerce Clouds show mixed results. Bank of America predicts Agentforce could add 1-2% incremental growth over the next two years, potentially expanding Salesforce’s total addressable market.
Analyst price targets average $346.14, implying a 38.29% upside from the current $253.25, with highs at $442.00 and lows at $225.00. However, posts on X reflect broader market concerns about an AI bubble, with some users warning that overvaluation in AI-heavy stocks like Salesforce could trigger significant corrections if growth falters. Morgan Stanley’s research on AI-driven savings of nearly $1 trillion annually for S&P companies underscores the high stakes for Salesforce’s AI strategy.
Looking Ahead
Salesforce’s Q2 earnings call will be pivotal for addressing investor hopes for faster growth and AI progress. Key areas to watch include:
- Agentforce Adoption: Updates on deal volume and revenue contribution, particularly whether it can scale beyond $100 million annually.
- Data Cloud Growth: Continued momentum in the $900 million AI and Data Cloud segment, critical for enterprise AI integration.
- Guidance Revisions: Whether Salesforce raises its conservative fiscal 2026 outlook to align with analyst expectations.
- Cost and Margin Management: Progress on operational efficiency, given recent job cuts and a 33.1% adjusted operating margin in Q3 fiscal 2025.
With a Zacks Rank #3 (Hold), Salesforce remains a leader in enterprise software, but its ability to translate AI innovation into sustained revenue growth will determine whether it can reverse its stock’s underperformance. Investors will be closely monitoring Benioff’s updates on Agentforce and strategic acquisitions like Informatica to gauge whether Salesforce can reclaim its position as an AI-driven growth story in a competitive tech landscape.
Sources: CNBC, Nasdaq, Investopedia, Bloomberg, Reuters, GuruFocus, CRN, PYMNTS