1 $8 Billion Reason You Should Buy Salesforce Stock Now
In 2024's final stretch, software makers began pivoting from passive generative artificial intelligence 'copilots' to assertive, goal-driven 'agents.' Where copilots merely enhanced productivity through prompts, agents are autonomous executors. They are designed to solve problems, take initiative, and deliver outcomes.
Salesforce (CRM), now known for its Agentforce platform, is doubling down on its AI agent strategy. It has announced an $8 billion all-cash acquisition of data management leader Informatica (INFA).
Informatica specializes in aggregating, cleansing, and orchestrating data across silos, precisely the infrastructure required to fuel agentic AI. By folding Informatica into its platform, Salesforce could build the most agent-ready data platform on the market.
With Wall Street's bullish call on CRM, along with double-digit gains in sight, Salesforce's shares could be a solid portfolio addition as AI agents take center stage.
About Salesforce Stock
Incorporated in 1999, San Francisco-based Salesforce (CRM) commands a $265 billion market cap and sits atop the global customer relationship management (CRM) software arena. Its cloud-based platform redefines enterprise-customer engagement, powering sales, service, marketing, and commerce with intelligent precision. Salesforce's deep push into data analytics and artificial intelligence (AI), coupled with strategic acquisitions like Slack and partnerships with tech giants like International Business Machines (IBM), reflects an unyielding pursuit of technological edge.
However, the climb has not been without setbacks. Salesforce touched an all-time high of $369 on Dec. 4, buoyed by a strong fiscal Q3 2025 showing, only to face a sharp pullback of nearly 22% in 2025.
Salesforce Beats Q1 Estimates
Salesforce kicked off fiscal 2026 with precision and power, unveiling its upbeat fiscal Q1 2026 report on May 28. The cloud CRM giant generated revenue of $9.8 billion, up 8% year over year, with subscription and support revenue comprising 95% of the top line, rising 9% excluding foreign exchange to $9.3 billion. Non-GAAP EPS hit $2.58, up 5.7%, exceeding Wall Street's estimates.
Meanwhile, operating cash flow climbed 4% annually to $6.5 billion, and free cash flow rose to $6.3 billion. Operating margin held strong at 32.3%, reflecting Salesforce's disciplined financial execution. The company returned $3.1 billion to shareholders, including $2.7 billion in buybacks and $402 million in dividends, signaling shareholder confidence even as it leans into aggressive innovation.
Plus, Salesforce's AI ambitions are paying off. Data Cloud and AI annual recurring revenue topped $1 billion, surging 120% year over year. Nearly 60% of its top 100 Q1 deals included Data Cloud and AI. Agentforce - Salesforce's AI-powered selling assistant - has already closed over 8,000 deals, with 750,000 support requests handled and a 7% reduction in case volume. The AI-driven momentum is anchored by Data Cloud, which ingested a staggering 22 trillion records, up 175%. AWS activity tripled, with Salesforce transacting $2 billion across hundreds of deals.
In the earnings call, CEO Marc Benioff defended the Informatica deal as strategic for AI dominance, emphasizing that unifying enterprise data is essential for AI transformation. He signaled ongoing hiring and hinted at more acquisitions, without budging on margin or cash flow discipline.
Salesforce is pressing forward with precision, projecting Q2 revenue between $10.11 billion and $10.16 billion. Non-GAAP EPS is anticipated to be between $2.76 and $2.78.
Management raised Salesforce's full-year revenue target by $400 million to a new range of $41 billion to $41.3 billion, marking approximately 8% annual growth. Despite global headwinds, it is holding the line on a 34% non-GAAP operating margin and solid operating cash flow growth between 10% and 11%. Plus, executives are keeping 2026 guidance unchanged, brushing off concerns about the Informatica deal. The company is navigating volatility with discipline, clarity, and having just enough firepower to keep Wall Street's attention.
Analysts monitoring Salesforce predict EPS of $8.41 in fiscal 2026, up 6.6% annually, with the bottom line projected to rise another 12.7% to $9.48 per share in fiscal 2027.
Fueling AI Agents With Data Muscle
Salesforce's deal to acquire Informatica for $8 billion in an all-cash transaction, paying $25 per share, is a steep drop from the mid-$30-per-share price floated back in April 2024 when talks first surfaced. Informatica's stock had even touched $40 that month, making this final price point a calculated bargain.
Salesforce is buying deep data infrastructure to power its AI ambitions. The move aims to unify Informatica's data management tools with Salesforce's Data Cloud, MuleSoft, and Tableau to create a seamless, agent-ready architecture. As enterprises move from copilots to autonomous AI agents, Salesforce stands well-positioned to lead the charge with a future-ready data and AI stack.
What Do Analysts Expect for Salesforce Stock?
Salesforce's bid for Informatica is drawing praise, not for growth, but for AI firepower. William Blair's Arjun Bhatia gives a 'Buy' rating on CRM, saying it's all about strengthening Salesforce's data management and AI game. As Salesforce reignites acquisitions post-2023, Bhatia sees long-term growth fueled by smart integration and expanding tech infrastructure.
CRM stock has a consensus ' Strong Buy ' rating overall. Out of 47 analysts offering recommendations, 34 suggest a 'Strong Buy,' four give a 'Moderate Buy,' seven analysts stay cautious with a 'Hold' rating, and two advise a 'Strong Sell' rating.
The average analyst price target for CRM is $362.89, indicating a potential upside of 38%.
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