Agentforce Gaining Momentum: Is Salesforce Stock a Value Play Now?

The AI Agent Surge Is Real

Salesforce’s fiscal Q3 results reveal compelling momentum mounting in its AI agent platform, Agentforce. The standout figure? ARR for Agentforce skyrocketed 330% year-over-year to hit $540 million. That’s not just growth—it’s validation that enterprises are genuinely adopting agentic AI solutions at scale.

The numbers tell a convincing story. Paid Agentforce deals hit 9,500 in Q3, up 50% from just last quarter. Even more impressive, the platform appeared in 6 of Salesforce’s top 10 deals during the period. With over 18,500 total Agentforce engagements in the pipeline, the company isn’t just experimenting with AI—it’s embedding it into the core of its revenue engine.

Why The Momentum Matters (But Hasn’t Transformed Growth Yet)

Combined Agentforce and Data 360 (the unified data platform) ARR jumped 114% year-over-year to $1.4 billion. Platform sales, where these AI-powered products live, accelerated to 19% growth—the fastest among Salesforce’s business units.

Yet here’s the reality check: overall revenue still grew just 9% to $10.26 billion. That’s solid, but not transformative. Subscription revenue climbed 10% to $9.73 billion. The company’s acquisitions—Slack (13% growth), Tableau (4%), and Mulesoft (6%)—are doing their part, but can’t mask that core growth remains in the high-single-digit to low-double-digit range.

This disconnect matters. Strong AI traction hasn’t yet catalyzed broad revenue acceleration across the platform. Investors should view this as early innings of an opportunity, not a proven inflection point.

The Cash Machine Never Stops

Despite revenue growth cooling relative to peers, Salesforce continues printing cash. Operating cash flow reached $2.3 billion, with free cash flow at $2.2 billion. The company deployed $3.8 billion on share buybacks and ended Q3 with $11.3 billion in cash against $84 billion in debt—a fortress balance sheet.

Adjusted EPS surged 35% to $3.25, crushing the $2.86 consensus. The company also raised full-year guidance again, now projecting FY2026 revenue of $41.45-$41.55 billion (9-10% growth) and adjusted EPS of $11.75-$11.77.

Where The Valuation Stands

This is where Salesforce becomes interesting for value-conscious investors. On forward FY2027 estimates, the stock trades at a price-to-sales multiple of just 5.3 and a forward P/E ratio of 19.5. The PEG ratio sits below 0.55—well below the 1.0 threshold that typically signals undervaluation.

For a company with Salesforce’s scale, profitability, and cash generation, these multiples are genuinely cheap. You’re not paying a growth premium despite exposure to the fastest-expanding AI agent market.

The Real Question: Can Agentforce Deliver The Growth Story?

Salesforce remains a textbook GARP (growth at a reasonable price) candidate. The company has momentum mounting in its most promising product category, a clean balance sheet, and reasonable valuation. What’s missing is evidence that AI adoption will eventually translate into double-digit revenue growth.

The AI agent market is nascent. Agentforce’s 330% ARR growth proves demand exists, but scaling that demand into enterprise-wide adoption—where per-seat and usage-based pricing models generate meaningful revenue acceleration—remains the unproven thesis.

At current valuations, patient investors with a 2-3 year horizon have an attractive risk-reward setup. The company doesn’t need to become a 25% grower. It just needs Agentforce to eventually push overall revenue growth into the mid-teens. For a stock trading at 5.3x forward sales, that’s a reasonable bar to clear.