Salesforce, the renowned customer relationship management (CRM) software entity, has seen a 12% increase in its shares, reaching a new record high, following the successful launch of its latest product, Agentforce. The substantial growth in share value equates to an additional $35 billion to its existing market valuation of $316.85 billion, as per LSEG data. The surge in share prices has been attributed to the successful introduction of Agentforce and a positive fiscal forecast for the year 2025.
Launched in late October, Agentforce is an innovative suite of autonomous AI agents designed to enhance the capabilities of employees across sales, service, marketing, and commerce. The advent of this AI-integrated product range has not only improved the performance of Salesforce but has also resulted in an optimistic fiscal forecast for 2025 from industry analysts.
During morning trading, Salesforce’s shares soared to a record high of $368.7. Analysts, showing confidence in the stock, have increased their price targets, leading to a 26% increase in Salesforce’s stock this year. The new median price target stands at $380, indicating a potential growth of approximately 15%.
The trend towards the surge in share prices is not unique to Salesforce. Other US tech companies operating in the cloud space have also witnessed similar growth. Oracle’s shares rose by 3.2%, ServiceNow’s by 3.5%, and Datadog and Snowflake both recorded a 4% increase.
Salesforce’s revenue expectations for the 2025 fiscal year have seen a slight increase of $100 million, with the new forecast range standing at $37.8 billion to $38 billion. During the third quarter of this year, the company also surpassed analysts’ revenue estimates, recording a total revenue of $9.44 billion.
The launch of Agentforce propels Salesforce into the competitive autonomous AI agent market, alongside tech giant Microsoft. A rivalry between the two corporations is already brewing, with Salesforce CEO Marc Benioff criticising Microsoft’s Copilot on Twitter for its lack of accuracy and inefficiency in delivering services to customers.
Despite the competition, Salesforce’s Agentforce has proven successful thus far. The company predicts that the AI product will continue to close deals, having already secured 200 since its launch. Salesforce’s high-performing data cloud has also contributed significantly to the strong quarter.
To accommodate the increasing demand for Agentforce, Salesforce executives are reportedly planning to hire an additional 1400 staff members in the fourth quarter. As the enterprise adoption of Salesforce’s solutions continues to rise, analysts predict that the company will maintain its impressive double-digit percentage growth performance.
In the face of thriving tech competition, Salesforce’s ability to innovate and adapt has been nothing short of remarkable. The successful launch of Agentforce serves as a testament to the company’s commitment to improving customer relationships through the power of AI, propelling the company to new heights.
