Salesforce Earnings: Lots of Buzz for Agentforce Even if No Meaningful Revenue Impact Yet

We are maintaining our $315 fair value estimate for wide-moat Salesforce after the company reported solid fiscal 2025 fourth-quarter results. The newly initiated outlook for fiscal 2026 was slightly below our expectations on the top and bottom lines after normalizing for increasing currency headwinds. Management remains excited about Agentforce, which we think represents a good long-term opportunity to transition from a mostly human agent labor force to a mostly virtual agent pool over time. Importantly, management believes consumption pricing will be a meaningful net positive for the company. After a dramatic run from June through November 2024, where we thought shares ended up overvalued, the stock has pulled back, leaving some daylight back up to our fair value estimate.