Salesforce, Inc. (CRM) shares rose 5.1% over the past month, outperforming the Zacks Internet – Software industry, which gained 3.9%, as well as competitors such as Microsoft Corporation (MSFT) (up 1%), Oracle Corporation (ORCL) (down 4.5%), and SAP SE (SAP) (down 3.9%). This increase follows Salesforce’s better-than-expected fourth-quarter fiscal 2026 results reported on February 25, where revenues grew 12% year over year, signaling a recovery from recent slowing growth trends.
Looking ahead, Salesforce projects revenue growth of 12-13% for Q1 and 10-11% for the full fiscal year 2027. The company heavily emphasizes its artificial intelligence initiatives, which contributed to $2.9 billion in recurring revenues, with a notable 169% increase in revenues from its Agentforce product. However, Salesforce faces ongoing risks due to macroeconomic uncertainties that could impact enterprise IT spending.
Currently, Salesforce has a forward P/E ratio of 14.69, significantly lower than the industry average of 28.41, making it a more attractive valuation compared to peers like SAP (22.89), Microsoft (22.51), and Oracle (19.16). Analysts suggest holding the stock while monitoring demand and the effectiveness of its AI strategies in a fluctuating economic environment.
