Can Salesforce sustain its profit growth next year?

**Salesforce's ability to sustain profit growth next year is uncertain**, and here's why:

1. **Slowing Revenue Growth**: Salesforce has experienced a significant slowdown in its revenue growth rate, which is a critical indicator of its profitability. The company's revenue growth rate for fiscal 2025 was 9%, but for fiscal 2026, it is projected to be between 7% to 8%. This decline in growth rate could negatively impact profit growth if costs are not managed effectively.
2. **Weak Fiscal 2026 Guidance**: Salesforce's guidance for fiscal 2026 revenue and earnings per share (EPS) fell short of analysts' expectations. The company projected revenue between $9.71 billion and $9.76 billion for Q1 2026, missing the consensus of $9.9 billion. The full-year revenue forecast of $40.5 billion to $40.9 billion also undershot analysts' estimates of $41.35 billion. Additionally, the adjusted EPS guidance of $11.09 to $11.17 for fiscal 2026 narrowly missed the consensus of $11.18. This weak guidance suggests that the company may face challenges in sustaining its profit growth.
3. **Agentforce Adoption Challenges**: The adoption of Salesforce's AI agent platform, Agentforce, has been slower than expected, which is a concern for the company's growth. Despite being integrated into the Salesforce platform, Agentforce is still in the early stages of adoption, and its impact on revenue is yet to be fully realized. If the adoption rate does not pick up, it could affect the company's ability to sustain profit growth.
4. **International Market Expansion**: Salesforce has identified international emerging markets as potential growth areas, such as Singapore, where it plans to invest $1 billion to create digital workforces using Agentforce. While this expansion could lead to growth, it also adds to the complexity of managing a global business and may incur additional costs that could impact profit margins.
5. **Analyst Sentiment**: Despite the challenges, analysts have maintained a "Buy" consensus rating for Salesforce, indicating some optimism about the company's future prospects. However, the recent stock decline and weak guidance have likely affected investor sentiment, which could impact the company's ability to raise capital for growth initiatives.

In conclusion, while Salesforce has a strong market position and growth potential in emerging markets, the company's current financial guidance and challenges in sustaining revenue growth rate and agent platform adoption suggest that sustaining profit growth next year may be difficult. The company will need to manage costs effectively, accelerate the adoption of its AI solutions, and capitalize on growth opportunities in international markets to achieve sustained profit growth.