So, here’s the thing about Salesforce. They’ve got this whole AI hustle going, right? Fiscal 2026—first quarter and bam!—they’re doing pretty solid. Raised their full-year revenue forecast too. But even with all that good news, 2025 was kind of a drag. Shares dropped over 20%—not exactly a pretty picture.
And then there’s the Informatica buyout—$8 billion. Like, what even is $8 billion? Anyway, that’s supposed to jazz things up a bit. Let’s break it down a bit more, though it might get messy.
AI Agents and Data Cloud—Yeah, Those
So they’re doing this thing with Agentforce, their AI agents. Already racked up 4,000 customers. ARR of $100 million in record time. Wasn’t expecting that. And somehow, 30% of their bookings are from customers using more. They’ve only been around for, what, two quarters? Total whirlwind. Got over 8,000 deals, pilots included. Talk about eagerness.
Same time, Data Cloud’s doing wonders. ARR jumped 120%—over $1 billion now. They’re dealing with mind-boggling numbers, like 22 trillion records. Wait—22 trillion? Insanity. Plus, 60% of big deals use both Data Cloud and AI. Smart move, keeping it in the family.
Agentforce and Data Cloud are just pieces of this ADAM puzzle—agents, data, apps, metadata. Salesforce swears these need to work in sync for digital awesomeness. Tableau, Slack, and the rest, all tangled up in their metadata platform.
Then there’s the FlexCredits thing—no idea why, but it sounds like a good way to keep customers happy. Adopt or die, right?
For Q1, they pulled in $9.83 billion—nice. Subscription and support revenue grew 8%. Mulesoft up 8%, Slack 11%, Tableau 12%—big numbers bouncing everywhere. Adjusted EPS? $2.58. Free cash flow hit $6.30 billion. Wowza.
Performance Obligations (Whatever That Means)
Current remaining performance obligations (cRPOs), which basically means promised revenue they expect to pocket, are up 12% to $29.6 billion. Visibility into future revenue or something like that.
Now, they’ve gone and boosted their full-year outlook:
- Revenue: $41.0 billion to $41.3 billion
- Growth: 8% to 9%
- EPS: $11.27 to $11.33
See it in numbers, feels more real, I guess.
Do We Buy the Dip?
Enterprise software’s been weird with guidance thanks to tariffs and all that. But Salesforce isn’t worried—boosted their forecast anyway. Yet, stocks stayed stubborn. Drama, am I right?
Still, there’s this spark with AI. That ADAM framework might just be genius. And buying Informatica should power up Data Cloud. FlexCredits are the cherry on top—helping align price with value for customers.
Despite all the fuss, Salesforce seems a bargain. Forward price-to-sales multiple lingering around 6 for fiscal 2026. P/E ratio at 23. That PEG ratio at 0.3 is screaming undervalued.
So, when we talk about AI opportunities and whatnot, Salesforce looks like it’s worth a shot. Consider this dip a juicy opportunity or just wait it out. Who can say?
