Citizens is heading into Salesforce Inc. (NYSE:CRM)'s fiscal second-quarter 2027 print with a bullish view. The firm reiterated a Market Outperform rating on the stock with a $315.00 price target, citing positive industry checks. As per the firm, 50% of checks came positive in Q2 compared to 22% in the first quarter of fiscal 2027.
However, the stock is down more than 19% year-to-date, entering the print as one of the most beaten-down stocks in tech. Against this backdrop, improving channel checks serve as a meaningful positive against a market that has been weighed down over concerns around AI agent economics and cash flow.
Salesforce came under the brunt of a massive sector-wide selloff amongst software-as-a-service (SaaS) companies, dubbed the "SaaSpocalypse." Investors believed that AI would take business away from SaaS enterprises such as Salesforce. However, the stock's recent results have been challenging the most bearish version of this thesis.
For the fiscal first quarter, the company reported a record revenue of $11.1 billion, up 13% year over year. This strong start led it to raise its full-year revenue forecast to a range of $45.9 billion to $46.2 billion. Its AI metrics also moved well, with annualized revenue from Agentforce reaching $1.2 billion, up 205% year over year. Previously, Agentforce had been struggling and making less than a billion in ARR.
Meanwhile, bookings for Agentforce One edition and Agentforce for Apps grew almost 60% year-over-year. Its CRPO (Current Remaining Performance Obligation), a key forward demand indicator, was $33.6 billion, up approximately 14% nominal and 13% in constant currency.
#checks
However, the stock is down more than 19% year-to-date, entering the print as one of the most beaten-down stocks in tech. Against this backdrop, improving channel checks serve as a meaningful positive against a market that has been weighed down over concerns around AI agent economics and cash flow.
Salesforce came under the brunt of a massive sector-wide selloff amongst software-as-a-service (SaaS) companies, dubbed the "SaaSpocalypse." Investors believed that AI would take business away from SaaS enterprises such as Salesforce. However, the stock's recent results have been challenging the most bearish version of this thesis.
For the fiscal first quarter, the company reported a record revenue of $11.1 billion, up 13% year over year. This strong start led it to raise its full-year revenue forecast to a range of $45.9 billion to $46.2 billion. Its AI metrics also moved well, with annualized revenue from Agentforce reaching $1.2 billion, up 205% year over year. Previously, Agentforce had been struggling and making less than a billion in ARR.
Meanwhile, bookings for Agentforce One edition and Agentforce for Apps grew almost 60% year-over-year. Its CRPO (Current Remaining Performance Obligation), a key forward demand indicator, was $33.6 billion, up approximately 14% nominal and 13% in constant currency.
#checks
8 days ago
