Truist Cuts Salesforce Target, Keeps Buy After Strong Q3

Overview

• Truist lowered its Salesforce price target to $380 from $400 but reiterated a Buy rating, citing sector-wide valuation compression.
• Salesforce reported Q3 revenue of $9.44 billion, up 8% year over year, with Subscription and Support revenue up 9% and non-GAAP EPS of $2.41.
• Remaining performance obligation reached $53.1 billion, up 10%, with current RPO at $26.4 billion, also up slightly more than 10%.
• Agentforce closed over 200 deals in one week, largely as Service Cloud add-ons, with Data Cloud included in 8 of the top 10 quarterly deals.
• Salesforce is hiring about 1,400 account executives to capture AI-related demand, as media commentary highlighted bullish views and cited a $500 million Agentforce run rate and wins at Costco and CVS.