Citizens has reiterated a Market Outperform rating on salesforce.com (NYSE:CRM) and kept a $405.00 price target, citing the rapid expansion of the company’s Agentforce offering as a primary driver of upside potential. At the current share price of $229.40, that target equates to about a 76% premium. Third-party InvestingPro data referenced by analysts indicates Salesforce is trading below its assessed Fair Value.
Agentforce momentum
The firm highlighted that Salesforce’s Agentforce business exceeded $500 million in Annual Recurring Revenue in the fiscal third quarter and recorded 330% year-over-year growth. Citizens noted that existing Agentforce customers have been returning to increase consumption of the service, an effect the firm described as customers coming back to "refill the tank."
Financial performance and margins
Salesforce reported 9% revenue growth and a 35.5% non-GAAP operating margin in its fiscal third quarter of 2026. Citizens pointed out that these results surpass the "Rule of 40" benchmark commonly used to assess software companies. InvestingPro figures cited in the analysis show gross profit margins of 77.73% and $12.9 billion in levered free cash flow generated over the trailing twelve months.
Customer traction and enterprise use cases
Checks conducted by Citizens with Salesforce partners revealed a robust demand picture and an active sales pipeline. The firm called out enterprise implementations including Olive, described as the AI Sous Chef for Williams Sonoma, and Pepsi, where Salesforce indicated Agentforce implementations have produced "massive efficiencies" in the range of 25-30%.
Management and capital allocation
Citizens expressed confidence in Salesforce’s executive team, referencing CEO Marc Benioff’s leadership, Chief Revenue Officer Miguel Milano’s enthusiasm and operational discipline from Chief Operating and Financial Officer Robin Washington. InvestingPro data included in the firm’s checks show management has been actively repurchasing shares and that the company carries a moderate level of debt while producing cash flows sufficient to cover interest payments.
Contracts and product rollouts
In other corporate developments mentioned by analysts, Salesforce has secured a $5.6 billion contract with the U.S. Army. The contract is structured as a 10-year Indefinite Delivery Indefinite Quantity (IDIQ) engagement and will be fulfilled by Computable Insights, a wholly owned Salesforce subsidiary. Separately, the company is rolling out a new AI-powered Slackbot aimed at helping enterprise customers complete work tasks more efficiently; availability is currently for Business+ and Enterprise+ customers with a phased rollout continuing through February.
Analyst community stance
Other sell-side firms have maintained bullish stances as well. KeyBanc reiterated an Overweight rating, citing opportunity in the Life Sciences Cloud market. Wolfe Research reaffirmed an Outperform rating after observing favorable momentum for Salesforce’s AI initiatives during the Agentforce World Tour in Boston. Cantor Fitzgerald kept an Overweight rating, noting Salesforce’s pursuit of a $60 billion revenue target by fiscal year 2030. Together, these ratings reflect continued analyst interest and confidence in Salesforce’s strategic trajectory.
Bottom line
Citizens’ reassertion of a Market Outperform rating and a $405.00 price target rests on rapid Agentforce growth, solid margin and cash-flow metrics, enterprise customer case studies and management’s capital deployment. InvestingPro data referenced by analysts signals a valuation gap relative to Fair Value, while recent product launches and the U.S. Army IDIQ contract add to the company’s set of growth catalysts.