Salesforce Inc. (CRM) sees renewed investor confidence as analysts revise upward their price target following stronger-than-expected Q4 revenue and progress in AI-driven product adoption. The company reported a 14% year-over-year revenue increase, exceeding consensus estimates.
- Salesforce posted $9.1 billion in Q4 revenue, a 14% YOY increase.
- Average revenue per user (ARPU) grew 22% YoY, driven by AI adoption.
- Over 60% of enterprise customers now use at least one Einstein AI feature.
- Health Cloud and Commerce Cloud grew 28% and 35% YoY, respectively.
- Analyst price target raised to $285, up from $243, after 'Hold' to 'Buy' upgrade.
- CRM shares gained 2.4% in pre-market trading following report release.
Salesforce Inc. (CRM) has emerged as a standout performer in the enterprise software sector, with a recent analyst report highlighting robust financial results and accelerated AI integration. The company delivered $9.1 billion in revenue for the fourth quarter of fiscal year 2025, marking a 14% increase compared to the same period the prior year. This exceeded market expectations by 3.2%, driven by higher growth in its subscription services and increased uptake of Einstein AI features across customer relationship management (CRM) platforms. The report underscores Salesforce’s strategic shift toward generative AI, noting that over 60% of its enterprise customers now use at least one AI-powered feature within the Salesforce Cloud suite. This adoption rate has contributed to a 22% year-over-year growth in average revenue per user (ARPU), signaling improving monetization efficiency. Analysts also cite the company’s expanding ecosystem, particularly in Salesforce Health Cloud and Commerce Cloud, which grew 28% and 35% respectively. As a result, a leading investment firm has upgraded its rating on CRM from 'Hold' to 'Buy' and raised its 12-month price target to $285 per share, representing a 17% upside from current levels. The upward revision reflects confidence in Salesforce’s ability to sustain double-digit revenue growth through 2026, even amid broader macroeconomic headwinds affecting tech spending. The stock reacted positively, with CRM shares rising 2.4% in pre-market trading. The momentum is expected to benefit not only Salesforce’s direct investors but also partners in the broader cloud infrastructure and SaaS ecosystem, including major integrators and data center providers supporting its growing AI workloads.