Salesforce's Agentforce Gambit: Can AI Revive Growth Amid Analyst Skepticism?

Salesforce (NYSE:CRM) is betting big on its AI platform Agentforce, but not all are convinced. In early 2025, Guggenheim analyst John DiFucci downgraded the stock to "Sell", slashing his price target by 26% and raising questions about Agentforce’s ability to compete with rivals like Microsoft and Meta. Yet Salesforce reports rapid adoption of its AI tools, with 5,000 deals secured by January 2025—including 3,000 paid agreements—and CEO Marc Benioff declaring Agentforce his “top priority.” The tension between skepticism and ambition sets the stage for a critical test of Salesforce’s future.

Ask Aime: Can Salesforce's AI platform, Agentforce, compete with Microsoft and Meta?

The Downgrade Argument: Data Quality and Monetization Concerns

DiFucci’s skepticism hinges on two pillars: data limitations and monetization hurdles. Agentforce relies primarily on static data from Salesforce’s CRM systems, which he argues cannot match the rich, dynamic datasets of competitors like Microsoft (which owns LinkedIn’s professional network) or Meta (with its social media trove). Meanwhile, Agentforce’s pricing model—$2 per interaction—has analysts questioning whether the cost is too high for SMBs or too low to generate meaningful revenue at scale.

Financially, Salesforce reported 8% revenue growth in Q4 fiscal 2025 to $10 billion, meeting guidance. Yet the stock fell 10% in early 2025, trading at a forward P/S of under 7—a valuation discount compared to its 10-year average of 8.5. Bulls argue this reflects undervaluation, but bears point to slowing sales growth: 8.3% in Q3 2025, below pre-pandemic rates.

Agentforce’s Progress: Adoption and Ecosystem Momentum

Salesforce’s defense rests on Agentforce’s rapid adoption and ecosystem expansion. Since its October 2024 launch, the platform has:
- Secured 5,000 deals by January 2025, tripling its December 2024 tally.
- Partnered with 1,000 tech firms, including Alphabet and AWS, to integrate AI models like Gemini.
- Trained 127,000 employees to support the platform, with plans to hire 1,000–2,000 salespeople to promote AI solutions.

The platform’s low-code tools allow customers to deploy AI “agents” for tasks like customer service and HR, with Salesforce projecting a $282 billion U.S. AI-driven retail market. CFO Amy Weaver emphasized that Agentforce is already boosting cross-selling: 70% of Agentforce customers also use Salesforce’s core CRM software.

The Bulls’ Case: CRM Synergy and Market Opportunity

Supporters like Salesforce MVP Robert Sösemann argue that Agentforce’s integration with existing CRM tools gives it a unique advantage. Unlike standalone AI platforms, Agentforce can leverage Salesforce’s 200,000+ customer base for upselling. Sösemann notes that Agentforce’s 3,000 paid agreements in just three months outpace early adoption rates of Salesforce’s previous flagship products, such as Einstein AI.

Financially, the company’s current remaining performance obligations (cRPO) rose 10% to $30.2 billion, suggesting strong demand. For fiscal 2026, Salesforce projects 7-8% revenue growth to $40.5–$40.9 billion, with adjusted EPS rising to $11.09–$11.17.

The Bottom Line: A High-Stakes AI Experiment

Salesforce’s fate now hinges on whether Agentforce can overcome its challenges. On one hand, the platform’s adoption speed and ecosystem partnerships are promising. The 127,000 trained employees and 1,000 new hires underscore a company-wide push. Meanwhile, the $2 per interaction pricing could become more profitable as scale increases, especially if enterprise clients adopt bulk licenses.

On the other hand, the data quality critique is valid. Microsoft’s LinkedIn data and Meta’s social graph are unmatched in scope, potentially limiting Agentforce’s reach in key markets like talent acquisition or consumer insights. Salesforce’s revenue growth, while steady, has slowed, and its stock’s valuation reflects investor doubt.

Conclusion: A Roll of the Dice with Potential Upside

Salesforce’s bet on Agentforce is a high-risk, high-reward gamble. The platform’s early traction and ecosystem integration suggest it could eventually justify the company’s valuation—if it can:
1. Scale monetization: Increase adoption beyond CRM customers and prove $2/interaction pricing works at scale.
2. Compete on data: Partner beyond its CRM ecosystem to access richer datasets, or innovate around its current limitations.
3. Deliver growth: Meet or exceed its 7-8% revenue guidance for fiscal 2026, showing Agentforce is a growth engine, not a cost center.

With $30.2 billion in cRPO and a PEG ratio of 0.5 (suggesting undervaluation relative to growth), the stock could rebound if Agentforce meets expectations. But if it falters, Salesforce risks becoming a laggard in the AI race. For now, investors are split: 42 of 55 analysts still rate the stock "Buy", but the stock’s 10% drop in early 2025 signals that patience is wearing thin. The next 12 months will reveal whether Agentforce is a game-changer—or just another costly experiment.