Salesforce Inc. (ticker symbol: CRM) is one of the world’s leading providers of cloud-based software solutions. Best known for its customer relationship management (CRM) platform, Salesforce has expanded into data, AI, and enterprise collaboration tools.
But in 2025, Salesforce stock is facing mixed signals. On one hand, the company continues to grow revenue and invest heavily in artificial intelligence. On the other hand, growth rates have slowed, and cautious enterprise spending is weighing on investor confidence.
So, is Salesforce stock a buy right now? Let’s take a deeper look.
🔎 Salesforce (CRM) at a Glance
- Company Name: Salesforce Inc.
- Ticker: CRM (NYSE)
- Headquarters: San Francisco, California
- Industry: Cloud Software / Enterprise SaaS
- Market Cap (2025): ~$250 billion
- Employees: ~70,000
Salesforce is a member of the Dow Jones Industrial Average, highlighting its importance in the U.S. stock market.
💰 Recent Earnings Performance (Q2 2025)
Salesforce recently reported Q2 2025 earnings, and the results were stronger than expected:
- Revenue: $10.24 billion (up 10% year-over-year)
- Adjusted EPS: $2.91 (vs. $2.78 expected)
- Annual Recurring Revenue (ARR): Significant growth in AI and Data Cloud segments
However, weaker guidance for Q3 caused the stock to drop around 3–4% after earnings. Investors are watching closely to see if Salesforce can accelerate growth in the second half of the year.
📈 Why Salesforce Stock Is Trending in 2025
1. Expansion in Artificial Intelligence
Salesforce is betting big on AI tools like Agentforce and its Data Cloud platform. In Q2, Data Cloud alone generated $900 million in ARR. More than 3,000 new AI-related deals were closed, highlighting growing demand.
2. Massive Share Buyback Program
Salesforce expanded its share buyback program by $20 billion, bringing the total to $50 billion. This signals confidence from management and offers support for the stock price.
3. Stock Performance and Valuation
Despite earnings beats, CRM stock has underperformed in 2025, down over 25% year-to-date. Analysts argue that this decline may make the stock undervalued, especially compared to its historical price-to-earnings ratio.
⚖️ Pros of Buying Salesforce Stock
- Strong Market Position
- Salesforce remains the global leader in CRM software, holding ~23% market share.
- AI and Data Cloud Growth
- The push into AI positions Salesforce for long-term growth.
- Attractive Valuation
- Forward P/E ratio is ~22, well below its 5-year average of 54.
- Shareholder Returns
- Large-scale buybacks are a positive sign for long-term investors.
⚠️ Risks to Consider
- Slowing Growth
- Revenue growth has dropped from 24% annually a few years ago to below 10% today.
- AI Execution Risk
- While AI is promising, adoption is still uncertain, and execution could be challenging.
- Enterprise Spending Caution
- Many businesses are tightening budgets, which could limit near-term demand.
- Stock Volatility
- As one of the worst-performing Dow stocks in 2025, investor sentiment is shaky.
📊 Analyst Outlook for CRM Stock
- Average Price Target: $333–$343 (30–35% upside potential from current levels).
- High-End Target: $440 (if AI adoption scales quickly).
- Low-End Target: $250 (if growth continues to slow).
Analysts remain cautiously optimistic, with most rating CRM as a Buy or Hold.
📌 Salesforce vs. Competitors
- Microsoft (MSFT): Competes with Dynamics 365, but Salesforce still leads in CRM.
- Oracle (ORCL): Strong in enterprise software, but Salesforce has the edge in cloud-based CRM.
- Adobe (ADBE): Competes in marketing and analytics, areas Salesforce also targets with AI.
❓ FAQs About Salesforce (CRM) Stock
Q1: Is Salesforce stock a good buy now?
👉 For long-term investors, Salesforce offers attractive valuation and strong growth in AI, though short-term volatility is likely.
Q2: Does Salesforce pay dividends?
👉 No. Instead, it returns value through share buybacks.
Q3: Why did Salesforce stock drop in 2025?
👉 Concerns about slowing growth and cautious enterprise spending have pressured the stock.
Q4: What is Salesforce’s biggest growth driver?
👉 AI tools like Agentforce and the Data Cloud platform are key growth engines.
Salesforce (CRM) stock is at a crossroads in 2025. The company is financially strong, investing heavily in AI, and rewarding shareholders through buybacks. However, slowing growth and uncertain enterprise demand are holding the stock back.
For investors who believe in the long-term future of AI-powered enterprise software, Salesforce could be an attractive opportunity at current prices. For short-term traders, caution may be necessary until revenue growth stabilizes.