We came across a bullish thesis on Salesforce, Inc. on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on CRM. Salesforce, Inc.’s share was trading at $236.58 as of October 15th. CRM’s trailing and forward P/E were 34.72 and 18.87 respectively according to Yahoo Finance.
Salesforce, the leading cloud-based CRM provider, is evolving its business model with a strategic pivot toward AI integration, emphasizing “agentic enterprises” where AI agents augment human workflows to boost productivity and data-driven decision-making. Key innovations, including Agentforce and Data Cloud, position the company as a major player in AI-enabled CRM. In Q2 FY2026, ending July 31, 2025, Salesforce reported revenue of $10.2 billion, up 10% year-over-year (9% in constant currency), driven by strong subscription and support growth to $9.7 billion.
Profitability remained robust, with GAAP operating margin at 22.8% and non-GAAP margin at 34.3%, reflecting disciplined cost management and operational efficiency. Forward-looking indicators were healthy, with cRPO rising 11% to $29.4 billion, while large deals over $1 million surged 26% year-over-year, including wins with Dell, Marriott, and the U.S. Army. Salesforce has leveraged its own tools as “Customer Zero,” with Agentforce processing over 1.4 million support requests, achieving a 77% resolution rate and reducing support headcount by nearly 40%.
Capital returns remain strong, with $2.6 billion returned in Q2 and a $20 billion expansion of the repurchase program, supported by projected operating cash flow of nearly $15 billion for FY26. AI adoption is accelerating, with Data Cloud and AI ARR surpassing $1.2 billion, up 120% year-over-year, and Agentforce securing over 12,500 deals, highlighting strong upsell potential.
While macroeconomic pressures and competitive risks from Microsoft and Adobe temper near-term sentiment, Salesforce raised FY26 revenue guidance to $41.1–41.3 billion and non-GAAP margin to 34.1%, underscoring steady execution. The company represents a compelling AI-driven growth story, with meaningful upside tied to the successful monetization of its agentic enterprise strategy.
Previously we covered a bullish thesis on Salesforce, Inc. (CRM) by Quality Equities in April 2025, which highlighted the company’s resilience amid macro volatility, subscription-based model, AI-driven solutions, and attractive free cash flow yield. The company’s stock price has depreciated approximately by 4.31% since our coverage. The thesis still stands as Salesforce’s AI adoption and margin expansion support ongoing upside. LongYield shares a similar perspective but emphasizes the “agentic enterprise” strategy and execution.
