‘Don't Miss the Rebound,' Analyst Sees Growth Potential in Salesforce's (NYSE:CRM) Key Business
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Importantly, he believes that Service Cloud's growth has hit its lowest point and is now expected to speed up in the upcoming quarters.
The analyst noted that Service Cloud's growth in the recent first quarter of Fiscal 2026 slowed to 7% from 9.5% in Q4 Fiscal 2025. But after adjusting for the leap year and rounding, Sills said that the real growth only dipped by about 1%.
Looking ahead, Sills projects revenue from Service Cloud to reach $9.7 billion in Fiscal 2026, marking an 8% year-over-year increase.
Analyst Sees Growth Ahead
In the near term, the analyst anticipates Service Cloud's growth will accelerate to 9% and could potentially move towards 12% over the longer term. Key drivers for this potential growth include Salesforce's add-on offerings and Agentforce upsell.
Also, Sills expects Service Cloud to lead the industry in new gains, thanks to its easy-to-use interface, strong customization and analytics, smooth integration across sales and service, and AI-powered innovation from Agentforce.
Is CRM a Buy, Hold, or Sell?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 34 Buys, nine Holds, and three Sells assigned in the last three months. At $346.92, the average Salesforce stock price target implies a 32.85% upside potential.
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