Salesforce Inc. (NYSE:CRM) is one of the most profitable tech stocks to buy. On December 4, Truist lowered the firm’s price target on Salesforce to $380 from $400 but maintained a Buy rating on the shares. This decision was made as Truist noted that the company’s strong Q3 performance, coupled with net-new Annual Order Value/AOV growth, increased confidence. This performance suggests the company will achieve improving double-digit organic subscription and support revenue growth over the next 12 to 18 months. However, the firm reduced its price target, reflecting lower assumed valuations across the entire sector.
On the same day, Salesforce reported its Q3 2025 earnings report, where the company achieved quarterly revenue of $9.44 billion, which marked an 8% year-over-year growth. Subscription and Support Revenue grew by 9%. The company reported Non-GAAP EPS of $2.41, which included a $0.18 charge from strategic investment adjustments. The company’s future revenue visibility remained solid, with RPO at $53.1 billion (up 10%), and Current RPO at $26.4 billion (up slightly more than 10%).
Salesforce’s AI-driven strategy is gaining significant market traction. The new AI-driven platform, Agentforce, closed over 200 deals in just one week, indicating strong initial market demand. These initial deals were largely add-ons to Service Cloud, the company’s largest cloud, but the potential extends across Sales, Marketing, and Commerce Clouds. Furthermore, the Data Cloud was included in 8 of the top 10 deals in the quarter, underscoring its crucial role in AI transformations and data harmonization efforts. To meet this increased demand, the company is expanding its workforce by hiring 1,400 account executives globally.
Salesforce Inc. (NYSE:CRM) provides customer relationship management/CRM technology that connects companies and customers worldwide.
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Disclosure: None. This article is originally published at Insider Monkey.
