Salesforce Inc. (NYSE: CRM) is back in the spotlight after an AI‑powered earnings beat, a strong guidance raise and a sharp rally in its share price — even as the stock remains one of the laggards in the Dow this year.
As of Friday, December 5, 2025, Salesforce shares closed at about $260.8, up more than 5% on the day, following a string of positive reactions to its fiscal 2026 third‑quarter results and upgraded outlook. [1] Yet despite this bounce, CRM is still down roughly a quarter for 2025 and ranks as the second‑worst performer in the Dow Jones Industrial Average so far this year. [2]
Below is a detailed look at the latest news, Wall Street forecasts and fresh analyses on Salesforce stock as of December 6, 2025.
Key Takeaways on Salesforce Stock Today
- Share price & performance: CRM closed just under $261 on December 5, gaining about 5% in a single session, but remains roughly 22–26% lower year‑to‑date, making it one of the “dogs of the Dow.” [3]
- Earnings beat: In fiscal Q3 2026 (quarter ended October 31, 2025), Salesforce delivered adjusted EPS of $3.25 vs. $2.86 expected and 9% year‑over‑year revenue growth to $10.26 billion. [4]
- AI momentum: Annual recurring revenue (ARR) from Agentforce and Data 360 (Data Cloud) has nearly hit $1.4 billion, up 114% year‑over‑year, with Agentforce alone surpassing $0.5 billion in ARR, up 330%. [5]
- Guidance raised: Management increased full‑year fiscal 2026 guidance to $41.45–$41.55 billion in revenue and non‑GAAP EPS of $11.75–$11.77, above prior ranges. [6]
- Analyst consensus: Wall Street remains broadly bullish. Across major aggregators, consensus ratings sit around “Buy” / “Moderate Buy”, with average 12‑month price targets in the $324–$330 range, implying roughly 25% upside from current levels. [7]
- Valuation check: Independent models such as Simply Wall St’s “fair value narrative” put fair value near $268–$269 per share, suggesting the stock is only modestly (≈3%) undervalued at current prices. [8]
How Salesforce (CRM) Stock Is Trading Right Now
Friday’s post‑earnings session saw Salesforce climb to just under $261 per share, with the stock up more than 5% for the day and trading on elevated volume. [9]
Despite the rally:
- Salesforce remains well below its 52‑week high around the mid‑$360s. [10]
- YTD performance is still negative: one recent Smartkarma recap pegs the year‑to‑date decline at about ‑25.98%, even after this week’s move. [11]
- A Barchart‑based analysis via inkl notes that Salesforce has tumbled nearly 22% in 2025, making it the second‑worst Dow component, behind only UnitedHealth. [12]
From a valuation standpoint, MarketBeat data show:
- Market cap: ≈ $248 billion
- Trailing P/E: about 34.8x
- PEG ratio: ≈ 1.94
- Beta: around 1.25 (a bit more volatile than the broader market) [13]
That leaves CRM priced as a premium, large‑cap SaaS name — but with a valuation that’s no longer at the nosebleed levels seen during the 2021 software boom.
Inside Salesforce’s Record Fiscal Q3 2026
Salesforce’s fiscal 2026 third‑quarter report, released on December 3, 2025, is the immediate catalyst behind the stock’s move higher.
Headline numbers
For the quarter ended October 31, 2025, Salesforce reported: [14]
- Revenue: $10.26 billion
- Up 9% year‑over‑year
- Driven by 10% growth in subscription and support revenue to $9.73 billion
- GAAP net income: about $2.1 billion, up from $1.5 billion a year ago
- GAAP diluted EPS:$2.19, versus $1.58 in the prior‑year quarter
- Adjusted (non‑GAAP) EPS:$3.25, beating consensus estimates of $2.86
- Free cash flow: around $2.18 billion, up 22% year‑over‑year
The company also reported robust backlog growth:
- Current remaining performance obligation (cRPO):$29.4 billion, up 11% year‑over‑year
- Total RPO: roughly $59.5 billion, up 12% year‑over‑year [15]
These metrics suggest that not only is Salesforce growing today, but it has a healthy pipeline of contracted, future revenue.
AI, Agentforce and Data Cloud: The New Growth Engine
The star of the earnings release was clearly AI and data.
Salesforce highlighted that the combination of Agentforce (its platform for building autonomous AI agents) and Data 360 / Data Cloud has become a major driver of growth: [16]
- Agentforce + Data 360 ARR: nearly $1.4 billion, up 114% year‑over‑year
- Agentforce ARR alone: above $0.5 billion, growing 330% year‑over‑year
- Agentforce deals since launch: more than 18,500, including over 9,500 paid deals, up 50% quarter‑over‑quarter
- Agentforce has processed over 3.2 trillion tokens through Salesforce’s LLM gateway
- Data 360 ingested 32 trillion records in Q3, up 119% year‑over‑year, with explosive growth in zero‑copy and unstructured data ingestion
CEO Marc Benioff and the leadership team now frame Salesforce as helping customers become “agentic enterprises,” where human workers, AI agents, apps and data work together on a unified platform. [17]
External commentators have also latched onto the AI narrative:
- Investopedia emphasized that the AI‑driven momentum and guidance hike helped “inject enthusiasm” into a stock that had been down nearly 30% for the year heading into the print. [18]
- TradingView’s StockStory recap highlighted that the Agentforce and Data 360 ARR ramp was a key factor in the market’s positive reaction. [19]
At the same time, some research — including analyst notes cited by Smartkarma — warns that AI investments will need to be balanced against margin pressures and the costs of integrating acquisitions like Informatica. [20]
Guidance Raised and Long‑Term Targets Reaffirmed
On the back of the strong Q3, Salesforce raised its full‑year fiscal 2026 guidance: [21]
- Revenue: $41.45–$41.55 billion
- Implies 9–10% year‑over‑year growth
- GAAP operating margin: about 20.3%
- Non‑GAAP operating margin: around 34.1%
- Non‑GAAP EPS:$11.75–$11.77 (up from prior guidance of $11.33–$11.37)
- Operating and free cash flow growth: around 13–14%
Management also reiterated its long‑term goal of achieving $60+ billion in organic revenue and a “Profitable Growth Framework” of 50 (revenue growth + non‑GAAP operating margin) by FY30. [22]
This combination of steady high‑single‑digit to low‑double‑digit revenue growth and improving profitability is central to the bullish case on CRM.
Capital Returns, Dividend and Balance Sheet
Salesforce continues to lean on shareholder returns as a way to support the stock:
- In Q3, the company returned about $4.2 billion to shareholders, including $3.8 billion in share repurchases and roughly $395 million in dividends. [23]
- Salesforce has initiated a regular dividend and, according to MarketBeat, recently declared a quarterly payout of $0.416 per share, or about $1.66 annually, which translates to a yield of roughly 0.6% at current prices. [24]
- The company maintains a relatively conservative debt‑to‑equity ratio of about 0.14, plus liquidity metrics (current ratio ~0.98, quick ratio ~1.12) that indicate a solid, though not overly cash‑heavy, balance sheet. [25]
For income investors, the dividend is still small, but it underscores Salesforce’s shift into a more mature, cash‑generative phase.
What’s New on December 6, 2025?
Several fresh pieces of analysis and news dropped on or just ahead of December 6, shaping the latest narrative around Salesforce stock:
1. Institutional buying vs. insider selling
A new MarketBeat report shows that Seaview Investment Managers LLC increased its Salesforce position by 18.3%, to 40,485 shares worth about $11.04 million, making CRM its 18th‑largest holding (≈2.3% of the portfolio). [26]
At the same time, insiders have been net sellers:
- Co‑founder Parker Harris sold 134,662 shares at an average price of about $234.70, for proceeds of roughly $31.6 million.
- Over the last 90 days, insiders have sold about 184,284 shares, valued around $43.9 million, leaving insiders with roughly 3% ownership. [27]
Institutional ownership stands above 80%, underscoring that CRM is largely in professional hands. [28]
2. Same‑day price surge and Smartkarma’s “Smart Score”
Smartkarma’s December 6 “market mover” note flagged Salesforce as closing at $260.57, up 5.30% on volume of 15.6 million shares, while still showing a ‑25.98% year‑to‑date performance. [29]
Smartkarma assigns Salesforce an overall “Smart Score” of 3.8 out of 5, with:
- Growth: 5
- Resilience: 4
- Value: 4
- Dividend: 3
- Momentum: 3
The takeaway: a positive long‑term outlook with strong growth and resilience, and a valuation viewed as reasonably attractive, even if momentum has only recently turned up. [30]
3. Simply Wall St: “3% undervalued” after the rebound
A new Simply Wall St valuation check dated December 6, 2025 notes that: [31]
- Salesforce last closed at $260.57
- Their narrative‑based fair value estimate sits near $268.76
That implies CRM is trading at about a 3% discount to their modelled fair value — hardly a deep bargain, but not obviously overpriced either. The analysis emphasizes:
- Double‑digit revenue growth,
- Rising margins, and
- A richer future earnings profile
as the main drivers behind the slightly higher fair‑value estimate, while cautioning that slower software budgets and intense competition in AI‑powered CRM could still pressure growth and profits.
4. “Dog of the Dow” framing and sentiment reset
A Barchart‑authored piece syndicated via inkl casts Salesforce as one of the “dogs of the Dow”, underscoring its near‑22% stock decline in 2025 vs. a 12.8% gain for the Dow and roughly 22% for the tech‑heavy XLK ETF. [32]
However, the same article highlights how:
- The Q3 earnings beat,
- Improving backlog (cRPO and RPO), and
- Explosive AI ARR growth
have started to turn sentiment more positive, especially as the company reiterates its longer‑term AI and profitable‑growth roadmap. [33]
How Wall Street Sees Salesforce Now: Ratings and Price Targets
Across major analyst aggregators, the picture is consistently constructive:
- MarketBeat:
- 42 analysts over the last 12 months
- Consensus rating: “Moderate Buy”
- Breakdown: 29 Buy, 12 Hold, 1 Sell
- Average 12‑month price target:$326.54
- Implied upside: ≈25% from about $260.78 per share [34]
- StockAnalysis.com:
- 35 covering analysts
- Consensus rating: “Buy”
- Average target: $324.57 (≈24.6% upside)
- Target range: $221–$405 [35]
- GuruFocus:
- 48 analysts
- Average target: $325.20
- Target range: $221–$442
- Implied upside: ≈36% from the reference price of $238.72 used in that report
- Consensus recommendation: equivalent to “Outperform” (rating 2.0 on a 1–5 scale) [36]
- Barchart / inkl summary:
- 49 analysts
- Consensus rating: “Strong Buy”
- Distribution: 35 Strong Buy, 2 Moderate Buy, 11 Hold, 1 Strong Sell
- Average target: $328.52, implying about 26% upside from current levels [37]
Investopedia’s roundup of major broker views captures some of the most bullish voices: [38]
- Morgan Stanley: Overweight, target $405
- Jefferies: Buy, target $375
- Bank of America: target $305, citing backlog strength
These targets collectively assume that Salesforce’s AI and Data Cloud strategy will translate into sustained double‑digit EPS growth and modest re‑rating of the stock over the next 12 months.
Street Forecasts: Revenue and EPS Through 2027
StockAnalysis’ consensus forecasts provide a useful snapshot of how analysts expect the fundamentals to evolve: [39]
Revenue
- FY 2025 (ended Jan 31, 2025): $37.90B
- FY 2026 (current year): $41.66B
- Growth of ≈9.94%
- FY 2027 (next year): $45.41B
- Growth of ≈9.01%
EPS (largely non‑GAAP forecasts)
- FY 2025: $6.36
- FY 2026: $11.49
- EPS growth ≈80.6% (benefiting from cost discipline and margin expansion)
- FY 2027: $12.85
- Growth ≈11.9%
If those projections hold and the company can sustain high‑20s to mid‑30s non‑GAAP operating margins, Salesforce would look less like a pure “growth stock” and more like a steady compounder with AI‑driven upside.
Valuation Check: Is CRM Cheap After the Selloff?
Different valuation lenses tell a broadly similar story:
- Traditional multiples (P/E ≈ 35x, PEG ≈ 1.9) suggest Salesforce is not “cheap” in absolute terms, but looks reasonable compared with other large‑cap, high‑quality software players, especially given its margin profile and cash generation. [40]
- Simply Wall St’s narrative‑based DCF and multiple framework sees fair value around $268.76, just 3% above the current price, implying the stock is slightly undervalued but not dramatically mispriced. [41]
- Smartkarma’s factor‑based “Smart Score” gives Salesforce strong marks on Growth and Resilience and a solid score on Value, reinforcing the idea that CRM is reasonably priced for a high‑quality growth franchise, not a deep value name. [42]
For many bulls, the key argument is that if Salesforce hits its FY30 revenue and profitability targets, today’s valuation will eventually look modest. Bears counter that AI competition, macro headwinds and acquisition risk (especially Informatica) could derail those plans.
Key Risks and Bear‑Side Arguments
Recent coverage also underscores why some analysts and investors remain cautious:
- Slower enterprise software demand: Several pieces of analysis flag cooling software budgets and macro uncertainty as headwinds that could cap Salesforce’s growth in the near term. [43]
- AI adoption not yet fully proven: Despite the impressive ARR growth in Agentforce and Data Cloud, skeptics argue that enterprise‑wide AI adoption is still in its early innings and may take longer to translate into durable, high‑margin revenue than bulls hope. [44]
- Informatica acquisition concerns: TradingView’s recap notes prior downgrades from RBC tied in part to worries about Salesforce’s $8 billion deal for Informatica, with critics pointing to mixed results from past big acquisitions like Slack and Tableau. [45]
- Insider selling: The recent wave of insider sales, particularly from co‑founder Parker Harris, may raise eyebrows, even as institutional investors like Seaview are buying. [46]
- Competition in AI‑driven CRM: With Microsoft, Oracle and a host of specialized AI startups all vying for enterprise AI budgets, Salesforce will need to execute flawlessly to maintain its leadership and pricing power. [47]
In short, the bull case hinges on Salesforce successfully turning its AI leadership and data moat into high‑margin, compounding revenue, while the bear case focuses on execution risk, macro headwinds and the possibility that the stock’s still‑rich valuation leaves little room for disappointment.
What to Watch Next
For investors and observers tracking Salesforce after December 6, key milestones include:
- Q4 FY26 results and FY27 guidance
- Whether management can beat or at least meet its raised guidance on revenue and EPS. [48]
- Trajectory of AI ARR
- Continued growth in Agentforce and Data 360 ARR, and whether AI starts to meaningfully accelerate overall revenue beyond high single digits. [49]
- Margin and cash‑flow trends
- Whether Salesforce can sustain 30+% non‑GAAP operating margins while ramping AI investments and integrating Informatica. [50]
- Sentiment shifts within the Dow and megacap tech
- If AI enthusiasm broadens beyond a handful of chip and hyperscaler names, lagging software giants like Salesforce could see further re‑rating — or continued underperformance if the market remains skeptical. [51]
Important Note
This article is informational and news‑focused only. It does not constitute financial advice or a recommendation to buy, sell or hold any security. Anyone considering an investment in Salesforce or any other stock should evaluate their own financial situation and, where appropriate, consult a licensed financial adviser.
References
1. www.marketbeat.com, 2. www.inkl.com, 3. www.smartkarma.com, 4. www.investopedia.com, 5. investor.salesforce.com, 6. investor.salesforce.com, 7. www.marketbeat.com, 8. simplywall.st, 9. stockanalysis.com, 10. www.marketbeat.com, 11. www.smartkarma.com, 12. www.inkl.com, 13. www.marketbeat.com, 14. investor.salesforce.com, 15. investor.salesforce.com, 16. investor.salesforce.com, 17. investor.salesforce.com, 18. www.investopedia.com, 19. www.tradingview.com, 20. www.smartkarma.com, 21. investor.salesforce.com, 22. investor.salesforce.com, 23. www.inkl.com, 24. www.marketbeat.com, 25. www.marketbeat.com, 26. www.marketbeat.com, 27. www.marketbeat.com, 28. www.marketbeat.com, 29. www.smartkarma.com, 30. www.smartkarma.com, 31. simplywall.st, 32. www.inkl.com, 33. www.inkl.com, 34. www.marketbeat.com, 35. stockanalysis.com, 36. www.gurufocus.com, 37. www.inkl.com, 38. www.investopedia.com, 39. stockanalysis.com, 40. www.marketbeat.com, 41. simplywall.st, 42. www.smartkarma.com, 43. simplywall.st, 44. www.investopedia.com, 45. www.tradingview.com, 46. www.marketbeat.com, 47. www.inkl.com, 48. investor.salesforce.com, 49. investor.salesforce.com, 50. investor.salesforce.com, 51. www.investopedia.com
