"Salesforce closed fiscal 2026 with revenue of $41.53 billion, up 10% year over year, and free cash flow of $14.4 billion. The standout was Agentforce, with ARR reaching $800 million, up 169% YoY, and 29,000 deals closed."
"Management guided fiscal 2027 revenue to $45.8 billion to $46.2 billion, raised the long-term fiscal 2030 target to $63 billion, and authorized a new $50 billion buyback."
"After today's drop, Salesforce stock trades at a trailing P/E ratio of 24x and a forward multiple near 14x. That's a steep discount to ServiceNow's trailing P/E ratio of 62x."
Salesforce stock fell 9% to $172.55 amid a sector-wide panic affecting enterprise software valuations, triggered by ServiceNow's Q1 report. The report revealed deal slippage and margin compression concerns, leading to multiple price target cuts from analysts. Despite Salesforce's strong fiscal performance, including a 10% revenue increase and a significant buyback authorization, the stock faced heavy selling pressure. The current P/E ratio of Salesforce is significantly lower than that of ServiceNow, raising questions about its valuation amidst ongoing market volatility.
Read at 24/7 Wall St.
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