Salesforce Earnings: Nice Rebound Quarter With Lots of Excitement Around Agentforce Virtual Agents

We are raising our fair value estimate for wide-moat Salesforce to $290 per share from $285 after the company reported good second-quarter results, while full-year revenue guidance was maintained and profitability raised slightly. Macroeconomic conditions continue to weigh on growth, even as the company delivered upside relative to our expectations on both the top and bottom lines. Recent trends continued, with multicloud deals and vertical domain sales driving relative strength compared with expectations. Management was enthusiastic about its new Agentforce platform, which we think represents a good long-term opportunity to transition from a mostly human agent labor force to a mostly virtual agent pool over time. Monetization will be on a per conversation basis. We see some upside to shares still, but the window has narrowed over the last three months.