Wall Street Bets Big on Salesforce’s AI Ambitions for 2026

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A consensus is forming among major Wall Street institutions that Salesforce is positioned for a standout performance in the coming year. Despite a significant share price decline since January, several top investment banks have named the CRM leader a top software pick for 2026, citing robust quarterly results and accelerating momentum for its artificial intelligence platform, Agentforce.

The foundation for this analyst optimism was laid by Salesforce's strong third-quarter results for fiscal 2026, released on December 3. The company reported revenue of $10.26 billion, a 9% year-over-year increase. Earnings per share came in at $3.25, surpassing expectations by $0.39. Operational strength was further evidenced by a 17% YoY jump in operating cash flow to $2.3 billion and a 22% YoY rise in free cash flow to $2.2 billion.

Particularly noteworthy was the performance of its newer offerings. The Annual Recurring Revenue (ARR) for Agentforce and Data 360 skyrocketed by 114% compared to the previous year. In response to these results, management raised its full-year guidance, projecting revenue between $41.45 billion and $41.55 billion and adjusted earnings per share in the range of $11.75 to $11.77.

Analyst Endorsements Highlight AI Potential

Mizuho Securities has identified Salesforce, alongside Snowflake and Oracle, as a preferred software equity for 2026. The firm anticipates sector outperformance following a subdued 2025, with Salesforce expected to play a pivotal role. Key drivers include the expanding adoption of the Agentforce platform, high-growth potential in data warehousing and AI/machine learning, and the company's strengthening position as an AI infrastructure provider.

This bullish sentiment is echoed elsewhere. Truist Securities recently reaffirmed its Buy rating, attaching a $380 price target. The analysts pointed to the successful execution of Salesforce's agentic enterprise strategy as a primary reason for their confidence.

Agentforce Gains Traction with Major Clients

Salesforce's AI agent platform, Agentforce, is demonstrating considerable enterprise appeal. A significant recent win is an expanded partnership with the U.S. Department of Transportation, which will utilize Agentforce to modernize national transportation and security systems.

Platform metrics reveal substantial growth:
* More than 9,500 paid deals have been closed.
* Fifty percent of bookings originate from expansions of existing contracts.
* Agentforce alone now generates over $500 million in ARR, representing a staggering 330% year-over-year increase.
* New integrations with Amazon Web Services have been launched via Agentforce 360.

Share Price Weakness Presents a Contradiction

In a stark contrast to the positive business fundamentals, Salesforce shares have declined approximately 24% since the start of the year. This downturn is attributed to broader market concerns over corporate IT spending trends and the pace of AI monetization across the sector.

A specific focus of investor debate is Salesforce's pricing model for Agentforce, which is based on consumption at $2 per conversation. While some market experts view this as a conservative and sustainable approach, it is seen as potentially capping near-term revenue growth from the platform.

The Road Ahead for Salesforce

The investment community remains largely positive, with around 80% of analysts maintaining favorable ratings. The median price target currently stands at $327.50. The upcoming earnings call in late February 2026 will be a critical indicator of whether Salesforce can successfully convert Agentforce pilot projects into large-scale enterprise deployments.

Management continues to uphold its ambitious target of $60 billion in revenue by 2030. This goal is bolstered by the recently completed acquisition of Informatica in November, which is projected to contribute roughly $300 million in incremental revenue in the fourth quarter alone.