Salesforce, Inc. Shares Advance Following Long-Term Revenue Target Announcement

Opening

Salesforce, Inc. (NYSE: CRM) shares advanced during Wednesday's extended trading, with the stock experiencing a notable increase after the company announced an ambitious long-term revenue target of over $60 billion by fiscal year 2030.

The Event in Detail

During its Investor Day at Dreamforce, Salesforce detailed a new financial objective, aiming for revenue exceeding $60 billion by fiscal year (FY) 2030. This projection excludes contributions from the pending acquisition of Informatica. The company outlined a path to achieving this goal with an implied 10%+ organic compounded annual growth rate (CAGR) from FY26 to FY30. Additionally, Salesforce introduced a new "Profitable Growth Framework, 50 by FY30", which targets the sum of subscription and support constant currency growth rate and non-GAAP operating margin to total 50 by the end of FY30.

Analysis of Market Reaction

The market responded positively to the announcement, with Salesforce (CRM) stock rising approximately 4% in after-hours trading. This uptick reflects investor optimism surrounding the company's long-term strategic vision and management's confidence in reaccelerating growth. Chief Financial and Operating Officer Robin Washington noted that while growth had been in a lower stage, it is now "reaccelerating," with expectations for year-over-year organic revenue growth to exceed 10% in the fiscal years leading up to 2030, a significant increase from the sub-10% rate observed since 2024.

However, not all market participants shared the same sentiment. Prior to the conference, Northland downgraded Salesforce stock to 'Market Perform' from 'Outperform,' citing concerns that expectations for agentic AI to significantly boost average revenue per user (ARPU) had not materialized. The firm also noted that Salesforce's constant currency cRPO growth has remained range-bound between 10% and 11% over the past year.

Broader Context & Implications

Salesforce's strategic focus on AI is central to its growth projections. The company reported strong momentum in its Data and AI offerings, which reached $1.2 billion in Q2, representing a 120% year-over-year growth. Its Agentforce platform contributed approximately $440 million to total agentic AI annual recurring revenue (ARR) in Q2, with over 12,000 customers adopting the service. Management projects a potential 3x to 4x ARR uplift for customers expanding agentic AI usage.

Despite the positive long-term outlook, Salesforce shares have experienced volatility, declining approximately 29% year-to-date. The company's forward Price-to-Earnings (P/E) ratio of 19–20 suggests that the stock is priced for growth, indicating that these ambitious targets come with inherent expectations and risks. Competition from rivals such as Oracle and SAP, who are also intensifying their AI offerings, presents a continuous challenge for market share and sustained momentum.

Expert Commentary

Marc Benioff, Chair and CEO of Salesforce, emphasized the company's role in the evolving business landscape:

We're leading the next great transformation in business — the era of the Agentic Enterprise — where AI elevates human potential and accelerates growth.

Robin Washington further affirmed the company's trajectory, stating:

We have the right strategy, products, and operating model to deliver exceptional growth, customer success, and shareholder returns. Our platform was built for this moment — the result of over $10 billion in focused, organic R&D spend since the start of FY24.

Looking Ahead

Investors will closely monitor Salesforce's execution on its Profitable Growth Framework and its ability to maintain double-digit organic revenue growth. The integration of Informatica, expected to close in the fourth quarter or fiscal year 2027, will also be a key factor. Further developments in AI product innovation, particularly within the Agentforce ecosystem, and their conversion into increased revenue per user will be critical indicators. Macroeconomic conditions and competitive dynamics within the enterprise software sector will continue to influence Salesforce's performance in the coming years.