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Salesforce rated BUY despite slower revenue growth, driven by strong AI adoption and undervaluation.

Analyst Insights
31 Jul 2026
Seeking Alpha
View Source
Neutral
Salesforce rated BUY despite slower revenue growth, driven by strong AI adoption and undervaluation.

Salesforce has been re-rated as a BUY due to its undervaluation and strong adoption of AI solutions, even though its revenue growth has slowed. The company reported an 8.7% organic revenue growth in Q1 2027, with AI adoption metrics like ARR and customer expansion showing robust growth. However, revenue acceleration lags behind due to complex pricing models. Trading at a P/E of 13.6x compared to the sector's 24x, Salesforce offers an attractive risk-reward profile despite competition from Microsoft, Oracle, and ServiceNow.

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