Why Salesforce (CRM) Is a Strategic Buy-and-Hold Play in 2026

Salesforce (CRM) has emerged as a compelling long-term investment in 2026, combining robust analyst optimism, undervaluation relative to cash flow metrics, and a transformative AI-driven growth story. For investors seeking both capital appreciation and income generation, the company's strategic positioning and financial fundamentals present a rare alignment of opportunity.

Bullish Analyst Sentiment and Financial Momentum

Analyst sentiment for Salesforce remains overwhelmingly positive, with 80% of Wall Street analysts maintaining a "Buy" or "Strong Buy" rating as of December 2025. The consensus price target of $327.50 implies a 26% upside from current levels, while individual targets range from $221 to $475, reflecting confidence in the company's ability to outperform broader market trends. This optimism is grounded in Salesforce's recent financial performance: in Q3 2026, the company reported a 9% year-over-year revenue increase to $10.3 billion, driven by its Agentforce and Data Cloud portfolios, which saw annual recurring revenue (ARR) surge 114%.

The company's AI initiatives, particularly its Agentforce platform, have become a key growth engine. ARR from Agentforce alone rose 330% year-over-year to $540 million in Q3 2026, with early adopters like reMarkable and Wiley reporting measurable ROI from AI-driven workflows. These results have prompted analysts to revise their forecasts upward, with Morgan Stanley and Wedbush setting price targets of $398 and $375, respectively.

Undervaluation Relative to Free Cash Flow and AI Potential

Despite its strong fundamentals, Salesforce remains undervalued when assessed through traditional metrics. The company's enterprise value to free cash flow (EV/FCF) ratio stands at 18.70 as of October 2025, a sharp decline from historical highs of 70.94 in previous years. This suggests the market is pricing in a discount to the company's cash-generating capabilities. A discounted cash flow (DCF) analysis further supports this view, estimating an intrinsic value of $373.09 per share-37.6% above the current price.

Salesforce's AI-driven growth potential amplifies its undervaluation. The company's Agentic Enterprise framework, which integrates AI agents into core business processes, is projected to capture a significant share of the $6 trillion digital labor market. Partnerships with OpenAI, Anthropic, and AWS, combined with the launch of AgentExchange-a marketplace for AI agents-position Salesforce to dominate the next phase of enterprise automation. Analysts project that AI-driven segments like Agentforce and Data Cloud will drive structurally higher revenue and margin growth, justifying a re-rating of the stock.

Option-Based Income Strategies to Leverage Bullish Outlook

For investors adopting a buy-and-hold approach, Salesforce's stock volatility and strong analyst price targets create opportunities for income generation through options strategies. A covered call strategy, for instance, could involve selling the January 2026 $235.00 call option, which currently offers a bid of $10.05. If the stock is called away at expiration, the investor earns a 7.48% return; if it expires worthless, the return is 4.41%. Similarly, a cash-secured put at the $225.00 strike price (bid $9.65) lowers the cost basis to $215.35 and offers a 4.29% return if the put expires worthless-a scenario with a 58% probability.

Longer-term strategies, such as selling March or June 2026 puts, provide additional flexibility. The $245.00 June 2026 put, for example, offers a 1.55% yield with a breakeven price of $241.20. These strategies align with Salesforce's projected 2026 growth trajectory, allowing investors to generate income while maintaining exposure to potential upside.

Conclusion: A Convergence of Fundamentals and Strategy

Salesforce's combination of bullish analyst sentiment, undervaluation relative to cash flow, and AI-driven growth makes it a standout buy-and-hold play in 2026. With a median price target of $327.50 and a DCF-derived intrinsic value of $373, the stock offers both near-term income opportunities and long-term appreciation potential. For investors willing to deploy options strategies, Salesforce's volatility and strong earnings momentum provide a framework to enhance returns while capitalizing on its transformative AI vision.