CRM Bets on ADAM Framework: Will it Fortify Leadership in Agentic AI?
CRM
) is using its ADAM framework, which includes Agents, Data, Apps and Metadata, as the base for its AI strategy. In the last earnings call for the first quarter of fiscal 2026, management emphasised that all four parts are needed for enterprises to deliver AI agents, or digital labor, effectively.
Salesforce delivers AI Agents through its Agentforce platform, while data is unified in the Data Cloud platform. The company's integration platform, MuleSoft, connects all the systems. Apps include Salesforce products like Sales Cloud, Service Cloud, Tableau, and Slack and Metadata acts as the shared platform that links all these components. Moreover, Salesforce's pending $8 billion acquisition of Informatica will enable it to expand into Informatica's master data management and ETL capabilities and create a unified architecture for agentic AI. The integration will help Salesforce create an environment where AI agents can operate safely and responsibly.
During the first quarter of fiscal 2026, management highlighted product examples built on the ADAM framework. Tableau Next is connected to Data Cloud and uses the Metadata platform to run its operations, while Slack acts as a conversational interface where users can access Salesforce apps and agents. MuleSoft connects the underlying systems, and Informatica is expected to strengthen data quality and readiness.
Moreover, the ADAM approach is also being used in customer projects, demonstrating its effectiveness. Finnair is deploying agents for customer service automation, while PepsiCo is combining multiple Salesforce clouds with an agent layer, and Falabella scaled a WhatsApp-based agent pilot into a larger regional rollout.
Management believes that without all four elements of the ADAM framework, enterprises cannot deliver the complete AI experience. While the company is betting on ADAM to help it stand out as businesses adopt agent-based automation, its ability to keep that lead will depend on how quickly customers adopt the framework. If execution goes well, the ADAM framework could become the next chapter in Salesforce's growth story. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates year-over-year growth of 8.6% and 9.2%, respectively.
How Competitors Fare Against Salesforce
Microsoft Corporation (
MSFT
) and ServiceNow, Inc. (
NOW
) are also pushing AI automation in the enterprise market.
Microsoft has integrated strong AI features into its Dynamics 365 platform through its Copilot tools, simplifying tasks such as writing emails, creating reports and summarizing meetings for users. Since many companies already use Microsoft products, integrating Copilot into their existing workflows is simple and cost-effective.
ServiceNow's Now Assist platform uses AI to automate IT service management, customer support and human resource management tasks. ServiceNow has been rolling out industry-specific AI tools, similar to what Salesforce is doing with its ADAM framework.
Salesforce's Price Performance, Valuation and Estimates
Shares of Salesforce have plunged 30.7% year to date against the Zacks Computer – Software industry's growth of 19.8%.
CRM YTD Price Return Performance
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 19.33, significantly below the industry's average of 35.32.
CRM Forward 12-Month P/E Ratio
The Zacks Consensus Estimate for Salesforce's fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 10.8% and 11.5%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #4 (Sell).
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