We came across a bullish thesis on Salesforce, Inc. on Darius Dark Investing’s Substack. In this article, we will summarize the bulls’ thesis on CRM. Salesforce, Inc.’s share was trading at $227.96 as of January 28th. CRM’s trailing and forward P/E were 30.51 and 17.51 respectively according to Yahoo Finance.
Salesforce, Inc. (CRM) has fallen sharply out of favor as investors embrace a narrative that artificial intelligence will structurally undermine the traditional SaaS model by reducing the need for human “seats,” compressing long-term revenue potential. This fear has driven a significant valuation reset, with Salesforce now trading at levels that imply it is a slow-growing utility rather than a durable technology compounder.
However, a closer examination of the company’s operating performance, strategic direction, and AI monetization strategy suggests this pessimism is misplaced. Salesforce’s Q3 FY2026 results demonstrated resilient fundamentals, with revenue growing 9% year-over-year, remaining performance obligations rising 12% to nearly $60 billion, and profitability reaching new highs. Non-GAAP operating margins expanded to 35.5%, while free cash flow grew 22%, underscoring strong operating leverage and disciplined capital allocation.
The core of the bullish thesis lies in Salesforce’s transition from a system of record to a system of action through its Agentforce platform. Rather than being threatened by AI-driven seat compression, Salesforce is repositioning itself to monetize AI through consumption, charging for autonomous agents executing workflows rather than simply licensing human users.
Adoption has been rapid, with Agentforce and Data Cloud generating nearly $1.4 billion in ARR, up 114% year-over-year, and Agentforce alone surpassing $500 million in ARR within 18 months of launch. This shift is reinforced by the acquisition of Informatica, which strengthens Salesforce’s data unification and governance capabilities, creating a critical “metadata moat” that enhances AI effectiveness and customer stickiness.
Despite these developments, Salesforce trades at roughly 20x free cash flow, well below historical levels and peers, while aggressively returning capital through buybacks and dividends. The market’s failure to recognize the durability and scalability of Salesforce’s AI-driven evolution presents a compelling bullish opportunity with attractive downside protection and meaningful long-term upside.
Previously, we covered a bullish thesis on Salesforce, Inc. (CRM) by Quality Equities in April 2025, which highlighted the company’s resilience to macro volatility, subscription-based stability, improving margins, and undervalued free cash flow growth assumptions. CRM’s stock price has depreciated by approximately 7.80% since our coverage. Darius Dark shares a similar thesis but emphasizes Agentforce adoption, AI monetization through consumption, and the strategic importance of Informatica.
