Salesforce Faces Its Defining Moment as Agentforce Moves From Hype to Hard Revenue

"Agentforce and Data 360 combined ARR hit nearly $1.4 billion, up 114% year-over-year. That is a genuinely impressive number, and the market rewarded it briefly. The stock jumped roughly 9.5% in the single day after the Q3 filing. But then something interesting happened: the stock kept falling."

"The market is essentially saying: we have seen the ARR chart, now show us the revenue. That is the shift happening in real time. Investors moved past the launch excitement and are now asking whether Agentforce translates into durable, recurring top-line growth or whether it is a feature dressed up as a product line."

"an agent could have handled that call, which likely cost the hospital around $100, while we could have done it for about $1.50. This highlights the message for our clients about relieving some of their staff to focus on strategic priorities, rather than on administrative tasks."

Salesforce reports Q4 FY2026 results with critical focus on Agentforce revenue generation. Last quarter, Agentforce and Data 360 combined ARR reached $1.4 billion, up 114% year-over-year, initially boosting stock 9.5%. However, CRM has since declined 30% year-to-date and 39% over the past year. The market has shifted from celebrating ARR growth to demanding proof of actual revenue and durable recurring growth. CEO Marc Benioff emphasized Agentforce's value proposition, citing cost savings where agents could replace $100 hospital calls for $1.50. Investors now question whether customers are signing substantial contracts or remain in pilot phases. Core CRM business growth of 9% year-over-year is solid but insufficient for premium valuation in the AI-driven market.

Read at 24/7 Wall St.