Salesforce (CRM) provided a long-term sales outlook of $63 billion at its annual conference, exceeding the average analyst estimate, and sought to ease market concerns about its competitiveness in the AI era through its partnership with Anthropic PBC and monetization progress on Agentforce and Data 360. Multiple institutions and analysts hold a relatively optimistic view of the company, but the history of missed revenue targets at its 2022 investor day has kept Wall Street cautious about the fulfillment of this long-term target, with future subscription revenue growth and the conversion of Agentforce bookings into revenue and profit becoming key observation points.
Robin Washington, the company’s chief operating officer and chief financial officer, said on Wednesday at the annual conference that the company’s sales are expected to reach $63 billion in the fiscal year ending January 2030. This outlook includes revenue from Salesforce’s acquisition of Informatica, which was completed in November last year. According to aggregated data, the average analyst estimate for that figure was $61.4 billion. The stock closed at $250.54 in New York and changed little in after-hours trading. Since hitting a low on June 22, the stock has risen 67%, but it is still down 5.4% year to date.
As a leader in the customer management software field, Salesforce is under pressure to prove that it can thrive in the era of evolving AI products. At this week’s conference, Salesforce heavily promoted its partnership with well-known AI startup Anthropic PBC, which helps ease investor concerns about the company facing direct competition. Citi analyst Tyler Radke wrote in a report that conversations with customers and partners at the conference were “notably more constructive than a year ago, with greater confidence in Salesforce’s AI product strategy and execution.” JPMorgan said market concerns that Salesforce will be replaced by AI are “exaggerated,” and Agentforce and Data 360 are monetizing AI capabilities—together their annualized recurring revenue is already close to $3.9 billion, and it is expected to exceed $5 billion by the end of fiscal 2027 and exceed $10 billion by the end of fiscal 2030; the current enterprise value/free cash flow valuation of about 11 times is below the peer average of about 15 times, leaving room for revaluation.
At present, the market mainstream remains relatively optimistic: of the 19 analysts tracked by Visible Alpha, 13 gave a “buy” rating and 6 were neutral, with an average target price of $272; the average target price of 56 analysts aggregated by Investing.com is $273.37, with no one giving a “sell” rating.
