On December 4, 2025, Evercore ISI maintained its "Outperform" rating for Salesforce (NYSE: CRM), with the stock priced at $238.72. Despite lowering the price target from $360 to $340, Salesforce's recent performance suggests strong potential. The company has effectively addressed concerns about AI adoption, reporting a 70% increase in Agentforce deployments in the third quarter.
Salesforce's AI initiatives have led to a record pipeline, causing shares to rise. The company's AI and Data portfolio has reached nearly $1.4 billion in Annual Recurring Revenue, a 114% increase year-over-year. This growth dispels previous warnings about slow AI uptake, as highlighted by CEO Marc Benioff's emphasis on the "Agentic Enterprise."
The third-quarter results for Salesforce were impressive, with significant growth in revenue, earnings per share (EPS), and free cash flow. Non-GAAP EPS increased by 35% year-over-year, driven by improved operating leverage and margin expansion. Free cash flow also rose by 22%, showcasing the company's financial strength.
Salesforce's stock recently saw a 3% boost in extended trading, following a better-than-expected quarterly profit. The company reported adjusted EPS of $3.25, surpassing the $2.86 anticipated by analysts. Revenue increased by 9% year-over-year, reaching $10.26 billion, aligning with estimates from Visible Alpha.
Currently, CRM is priced at $238.72, reflecting a 1.71% increase. The stock has fluctuated between $233.16 and $239.23 during the trading day. With a market capitalization of approximately $228.58 billion, Salesforce's AI-driven momentum is seen as a catalyst to revive interest in its stock.
