Salesforce (CRM) and Google Cloud (GOOGL) have announced an expanded partnership focused on integrating AI agents across both platforms, aiming to solve enterprise data fragmentation and workflow inefficiencies.
The partnership allows customers to deploy AI agents directly within tools like Slack and Google Workspace, leveraging Salesforce's Agentforce and Google's Gemini Enterprise as the underlying intelligence layer. The goal is to reduce data movement between systems and minimize context switching, enabling more autonomous operations for businesses.
On the financial side, Salesforce reported Q4 2026 revenue of $11.2 billion, up 12% year-over-year, and earnings per share of $3.81, beating the consensus estimate of $3.05. The company's Agentforce product posted an annual recurring revenue (ARR) of approximately $800 million, up 169% year-over-year, and combined with Data Cloud, ARR reached over $2.9 billion, up more than 200%.
Salesforce has signed over 29,000 Agentforce deals since launch, up from 18,500 in the prior quarter, with production accounts growing nearly 50% quarter-over-quarter. Around 60% of Agentforce and Data Cloud bookings came from existing customers expanding usage.
Institutional interest remains strong, with M&T Bank Corp increasing its Salesforce stake by 166.6% in Q4, and institutional investors now holding 80.43% of the company. The board approved a $25 billion share repurchase program and raised the quarterly dividend to $0.44.
Despite these positive developments, Salesforce stock is down approximately 30% year-to-date, trading at around $189.80, well below its 52-week high of $296.05. However, Wall Street analysts maintain a "Moderate Buy" rating with an average price target of $261.45, implying about 38% upside. The sell-off appears driven by concerns over slowing growth in certain segments like Marketing, Commerce, and Tableau, as well as competition from AI-native vendors.
Management has guided for a revenue reacceleration in the second half of Fiscal 2027, with Q1 2027 EPS expected to be $3.11-$3.13. The stock currently trades at a forward P/E of around 14x, below the internet software industry average of ~19x.
