Salesforce, Inc. (NYSE: CRM) has crossed a significant milestone in its artificial intelligence strategy, with its Agentforce platform surpassing $1 billion in annual recurring revenue.
The company disclosed the figure during its first-quarter fiscal 2027 earnings report, revealing that Agentforce ARR jumped 205% year over year to reach $1.2 billion.
Agentforce is designed to help businesses automate customer service, sales, marketing, and operational tasks using AI agents across their organizations.
During the first quarter of fiscal 2027, Salesforce processed 28.6 trillion AI tokens, a sequential increase of 152%, while Agentic Work Units rose 111% to 3.8 billion.
The company’s broader AI ecosystem is expanding at a similar pace, with combined AI and data ARR reaching $3.4 billion, reflecting a 200% year-over-year surge.
That combined figure includes contributions from Agentforce, Data 360, and Informatica Cloud, as Salesforce builds out an integrated AI and data platform.
Notably, half of Agentforce and Data 360 bookings came from existing customers expanding their spending, pointing to strong cross-selling momentum within the current customer base.
Salesforce’s overall first-quarter revenues increased 13% year over year to $11.13 billion, with current remaining performance obligations climbing roughly 14% to $33.6 billion.
The company also secured a record 98 deals worth more than $1 million in annual contract value during the quarter, underscoring enterprise appetite for its AI offerings.
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 revenues currently stands at $46.08 billion, representing a year-over-year increase of approximately 11%.
Microsoft Corporation (NASDAQ: MSFT) is among the most prominent competitors in the enterprise AI space, leveraging Dynamics 365 and its partnership with OpenAI to drive adoption.
In the third quarter of fiscal 2026, Microsoft’s Azure and other cloud services revenues grew 40% year over year, while its AI business surpassed an annual revenue run rate of $37 billion, growing 123% year over year.
Oracle Corporation (NASDAQ: ORCL) is also intensifying its AI push through Oracle Cloud Infrastructure and Fusion applications, with total cloud revenues rising 44% year over year to $8.9 billion in its third quarter of fiscal 2026.
Oracle Cloud Infrastructure revenues surged 84% to $4.9 billion, reflecting strong demand for AI workloads as enterprises accelerate spending on cloud-based software solutions.
Oracle is integrating AI agents across its ERP, customer experience, and database products, allowing customers to automate core business functions at scale.
Shares of Salesforce have fallen 24.2% year to date, a steeper decline than the Zacks Internet Software industry’s drop of 4.7% over the same period.
From a valuation perspective, CRM trades at a forward price-to-earnings ratio of 14.56, well below the industry average of 28.82, suggesting the stock may be attractively priced relative to peers.
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies year-over-year growth of approximately 6.6% and 12.2%, respectively, with both estimates holding steady over the past seven days.
Salesforce currently carries a Zacks Rank of 2, equivalent to a Buy rating, as analysts weigh its AI-driven growth trajectory against broader market pressures.
