Salesforce (CRM) Stock: Company Sets $60 Billion Revenue Target by 2030

TLDR

• Salesforce forecasts revenue of over $60 billion by fiscal year 2030, exceeding Wall Street’s estimate of $58.37 billion
• The company targets organic compound annual growth rate of over 10% from fiscal 2026 to 2030
• Data and AI services generated $1.2 billion in Q2, up 120% year-over-year
• Agentic AI annual recurring revenue reached approximately $440 million in Q2
• Salesforce announced a $7 billion share buyback program over the next six months

Salesforce unveiled a revenue forecast of over $60 billion for fiscal year 2030 at its Dreamforce investor event on Thursday. The projection exceeds Wall Street’s consensus estimate of $58.37 billion for that period.

The forecast excludes contributions from the company’s pending $8 billion acquisition of Informatica. Salesforce expects to achieve an organic compound annual growth rate exceeding 10% from fiscal 2026 through 2030.

Shares rose 5.15% in premarket trading following the announcement. The stock has declined 29% year-to-date through Wednesday’s close.

The company introduced a “50 by FY30” framework that combines subscription growth with non-GAAP operating margin targets. This profitability metric aims to reach a combined total of 50 by the end of fiscal 2030.

AI Services Fuel Growth Momentum

Salesforce reported strong performance in its data and AI services segment during the second quarter. The division generated $1.2 billion in revenue, marking a 120% increase compared to the prior year period.

The company’s agentic AI platform recorded annual recurring revenue of approximately $440 million in Q2. Salesforce projects this revenue could triple or quadruple for clients who fully implement the technology.

Agentforce 360 became globally available across the company’s cloud-based product suite on Monday. The platform automates tasks and helps clients streamline operations.

Salesforce agreed to purchase Informatica in May for around $8 billion. The deal aims to strengthen AI capabilities by integrating data management and governance tools into the platform.

The company released third-quarter revenue guidance in September that fell below Wall Street expectations. Management pointed to slower monetization of the Agentforce platform as clients reduced spending due to economic uncertainty.

Share Buyback Program Announced

Salesforce outlined plans Wednesday to repurchase approximately $7 billion worth of shares over the next six months. The buyback program represents a return of capital to shareholders.

The company operates with a debt-to-equity ratio of 0.18. Its operating margin stands at 21.22% with a net margin of 16.87%.

Revenue growth over the past three years averaged 12.7%. The company maintains a market capitalization of approximately $225.2 billion.

Institutional investors hold 80.71% of outstanding shares. Insider transactions showed 63 sell transactions over the past three months.

The P/E ratio of 34.39 sits near its 10-year low. The price-to-sales ratio of 5.79 and price-to-book ratio of 3.68 are also close to historical lows.

Analyst consensus places the target price at $332.15. The current RSI reads 43.69, indicating neutral market sentiment.

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