TLDR
- Salesforce projects revenue exceeding $60 billion by fiscal 2030, surpassing analyst expectations of $58.37 billion
- Data and AI services jumped 120% year-over-year to $1.2 billion in Q2
- Agentforce AI platform generated $440 million in annual recurring revenue during Q2
- Company plans $7 billion share buyback over next six months
- Stock rose 5.15% in premarket trading following the announcement
Salesforce announced a revenue target of over $60 billion for fiscal year 2030 during its Dreamforce investor event Thursday. The forecast beats Wall Street’s consensus estimate of $58.37 billion.
The projection does not include revenue from the company’s pending $8 billion Informatica acquisition. Salesforce expects organic compound annual growth exceeding 10% from fiscal 2026 through 2030.
Shares climbed 5.15% in premarket trading after the announcement. The stock has dropped 29% this year through Wednesday’s close.
The company rolled out a “50 by FY30” framework combining subscription growth with non-GAAP operating margin targets. This profitability measure aims to hit a combined score of 50 by fiscal 2030 end.
AI Platform Drives Revenue Acceleration
Salesforce’s data and AI services delivered strong Q2 results with $1.2 billion in revenue. The 120% year-over-year increase highlights growing demand for AI capabilities.
The Agentforce AI platform recorded $440 million in annual recurring revenue during Q2. Salesforce expects this figure could triple or quadruple for clients adopting full implementation.
Agentforce 360 launched globally across the cloud product suite Monday. The platform automates workflows and streamlines business operations for customers.
The Informatica deal announced in May strengthens data management capabilities. The $8 billion acquisition integrates data governance tools into Salesforce’s existing platform.
Financial Metrics and Market Position
Salesforce maintains a debt-to-equity ratio of 0.18 with an operating margin of 21.22%. The company posted a net margin of 16.87% with three-year revenue growth averaging 12.7%.
The company announced a $7 billion share repurchase program Wednesday spanning six months. Market capitalization stands at approximately $225.2 billion.
Institutional investors control 80.71% of outstanding shares. The P/E ratio of 34.39 trades near its 10-year low while the price-to-sales ratio sits at 5.79.
Analysts set a consensus target price of $332.15. The RSI indicator reads 43.69, suggesting neutral momentum.
Third-quarter revenue guidance released in September came in below expectations. Management cited slower Agentforce monetization as clients reduced spending due to economic conditions.
Insider transactions showed 63 sell orders over the past three months. The company’s Altman Z-Score of 4.71 indicates strong financial health.
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