In a report released on May 23, Tyler Radke from Citi maintained a Hold rating on Salesforce, Inc. (NYSE:CRM) and lowered its price target to $320 from $335. The rating comes ahead of the company’s Q1 2026 earnings release on May 28.
A customer service team in an office setting using the company's Customer 360 platform to communicate with customers.
The analyst reasoned that the overall demand for the company’s offerings is showing mixed signals. While interest in Agentforce, the company’s agentic AI platform, is strong, the analyst said its current impact is limited. The core CRM demand suggests variability, as some areas are undergoing a decline while others grow.
This can be seen in Salesforce, Inc.’s (NYSE:CRM) fiscal Q4 2025 results, where it surpassed EPS but fell short of revenue. It reported an EPS of $2.78 adjusted compared to the expected $2.61, while revenue was $9.99 billion compared to the expected $10.04 billion.
The analyst also said that the company is focusing on enhancing transparency and simplifying pricing. However, the effects of these initiatives are yet to materialize. Radke expects revenue growth for Salesforce, Inc. (NYSE:CRM) to remain in the high-single-digits. The top-of-funnel demand and overall engagement, however, appears weaker to him.
He is thus looking for more substantial data on commercialization and wider rollouts before adopting a more optimistic sentiment for the stock and its growth prospects.
While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about the cheapest AI stock.
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