Salesforce Inc. (NYSE:CRM) stock fell more than 3% Thursday after the software company raised its fiscal 2027 revenue outlook to the high end of its previous range.
According to Benzinga Pro, the update may have disappointed investors who were looking for a larger increase.
However, analysts remained largely constructive following Salesforce’s investor day. J.P. Morgan said the event highlighted growing AI monetization opportunities, premium upgrades and higher spending among Agentforce customers.
Analyst Samik Chatterjee maintained an Overweight rating and a $265 December 2027 price forecast.
AI Could Drive Bigger Customer Spending
Chatterjee said the event strengthened J.P. Morgan’s view that Salesforce can generate more revenue from its installed customer base through premium upgrades, Agentforce adoption and higher AI usage.
Salesforce’s top 100 Agentforce customers by average weekly users generated more than 2 times the annual recurring revenue within 18 months of launch. Premium license ARR has also topped $1 billion. The premium mix rose to 5% in the fiscal second quarter of 2027 from 1% in the fiscal first quarter of 2025.
The economics of premium upgrades also stood out. Upgrades to Agentforce 1 Edition carry a 60% to 80% increase in average selling prices. Customers that upgraded more than half of their Sales and Service seats generated about 1.4 times total ARR.
J.P. Morgan estimates that every 1% of Salesforce’s customer base that moves from core products to premium tiers represents roughly $100 million in opportunity.
See More:
Top Value Stocks
$63 Billion-Plus Revenue Goal Reaffirmed
Salesforce reaffirmed its target for more than $63 billion in fiscal 2030 revenue. Management also said organic growth remains on track to accelerate in the second half of fiscal 2027 and beyond. However, it did not issue formal fiscal 2028 guidance.
J.P. Morgan also highlighted Salesforce’s traction among AI-native companies. Nine of the top 10 AI companies use Salesforce, while ARR from that cohort jumped 435% year over year. CRM seat growth rose 62% among those customers, while Slack adoption reached 100%.
Still, premium products account for only 5% of the installed base. J.P. Morgan said the pace of customer migration to higher-priced Advanced and Max editions will be key to realizing the opportunity.
Salesforce carries a Buy consensus rating with an average price forecast of $272.65. Stifel maintained a Buy rating Thursday and raised its price forecast to $300. Citigroup maintained a Neutral rating and raised its forecast to $263. RBC Capital maintained its Sector Perform rating and $250 forecast.
The stock is a major holding in several technology-focused ETFs. It accounts for 6.60% of the iShares Expanded Tech-Software Sector ETF (BATS:IGV), 6.11% of the First Trust Dow Jones Internet Index Fund (NYSE:FDN) and 6.53% of the Invesco BuyBack Achievers ETF (NASDAQ:PKW).
Salesforce Price Action
CRM Price Action: Salesforce shares were down 3.27% at $242.35 at the time of publication on Thursday, according to Benzinga Pro data.
Image via Shutterstock
