Salesforce rises 2% before earnings as investors weigh AI

Salesforce shares climbed 2% Wednesday ahead of the company’s first-quarter earnings report as investors assess whether the company can steady revenue growth and monetize its AI Agentforce amid concerns about pricing and product adoption.

Analysts expect adjusted earnings per share of $3.11 to $3.13 for the quarter, up from $2.58 a year earlier. Revenue estimates range from about $11.05 billion to $11.1 billion, implying roughly 12% year-over-year growth. Options pricing points to an implied post‑earnings move of about 8% in either direction. The stock has fallen about 34% over the past 12 months while the S&P 500 has climbed roughly 29%.

Investors are focused on how artificial intelligence will affect traditional per-user subscription models that long supported high margins in customer relationship management software. Salesforce’s CRM business has carried gross margins near 75%, and analysts say AI agents that automate workflows or generate custom solutions could reduce dependence on user-based licenses. The topic drew added attention after Palantir told investors it replaced its off-the-shelf CRM with a custom-built system.

Salesforce is promoting its Agentforce platform, which charges by service consumption rather than by user. The company has revised Agentforce pricing multiple times while seeking a sustainable approach to monetization. At the end of the fourth quarter, Agentforce and related products accounted for about $800 million in annual recurring revenue, up from $440 million nine months earlier. That figure remains small relative to Salesforce’s projected fiscal 2027 revenue of roughly $46 billion, and investors are watching whether adoption can accelerate.

Analysts hold mixed views. Bank of America restarted coverage with an Underweight rating and a $160 price target, writing that the firm expects “a structural reset driven by AI transition,” which could involve slower customer growth, limited upselling and an “underwhelming” path to monetizing AI offerings. Deutsche Bank maintained a Buy rating with a $255 price target, forecasting a “seasonally slow but steady start” and arguing that concerns may “underappreciate the opportunity for software companies to adapt.” Visible Alpha data show 14 of 20 analysts rate the stock a Buy, five are neutral and one recommends Sell; the average price target is near $262.

Investors will look to the earnings report and management commentary for details on customer traction, pricing strategy for Agentforce and the timeline for scaling AI services. Market expectations for volatility after the report reflect the focus on how Salesforce plans to address revenue growth and AI monetization.