Salesforce Inc., the San Francisco-based cloud software giant, has raised its annual sales forecast for the year ending January 2026, fueled by growing customer interest in AI-powered solutions and a strategic acquisition to enhance its data-handling capabilities.

New Forecast Reflects AI Confidence

Salesforce now expects its revenue to hit between $41 billion and $41.3 billion, up from its previous projection of $40.5 billion to $40.9 billion. This upgrade reflects growing optimism around the company’s AI initiatives, especially the traction gained by Agentforce, its AI agent platform.

Launched in October 2023, Agentforce is part of a new wave of AI agents designed to autonomously manage tasks such as customer service, reducing the need for human intervention. The company revealed that it had closed more than 4,000 paid deals for the product, indicating strong early adoption, though the full revenue impact is still anticipated in future quarters.

AI Agents: The New Competitive Battleground

Salesforce is one among several major tech firms—alongside Microsoft Corp. and ServiceNow Inc.—vying to dominate the emerging AI agent market. These software agents are built to carry out tasks independently, making them attractive to companies seeking efficiency and automation.

Despite rapid adoption, investors remain cautious, waiting for Agentforce to deliver tangible revenue contributions in Salesforce’s financials. Still, the company is betting big on this trend and building the ecosystem needed to support enterprise AI deployments.

$8 Billion Informatica Acquisition Signals Strategic Shift

In a parallel move aimed at reinforcing its AI strategy, Salesforce also announced it will acquire Informatica, a cloud data management company, for approximately $8 billion. Informatica specializes in organizing scattered enterprise data, a key bottleneck in effective AI implementation.

According to Robin Washington, Salesforce’s CFO and COO, “Informatica is a data power play.” The acquisition will complement Salesforce’s existing data services, helping customers integrate AI by providing cleaner, more structured, and accessible data across systems.

The move aligns with CEO Marc Benioff’s long-standing strategy of leveraging acquisitions for growth. Though he had paused such activity under investor pressure to reduce spending, the Informatica deal signals a renewed focus on innovation-led expansion.

If finalized, the Informatica acquisition will be Salesforce’s largest since the $27.7 billion purchase of Slack in 2021, marking a significant milestone in its expansion efforts.

AI and Data Division Hits $1 Billion Annual Recurring Revenue

Salesforce’s internal metrics reinforce this AI-driven momentum. The segment that includes AI and data services reached over $1 billion in annual recurring revenue as of April 30. This is up from $900 million the previous quarter, reflecting consistent demand and faster adoption.

Analyst Anurag Rana from Bloomberg Intelligence highlighted this growth as a “clear sign of consistent AI demand,” giving further credence to Salesforce’s strategic direction.

Q1 Financials Beat Estimates

Salesforce also posted strong results for its fiscal first quarter:

• Revenue: Increased 8% year-over-year to $9.8 billion

• Remaining Performance Obligations (RPO): Reached $60.9 billion, a measure of future business

• Profit (excluding some items): $2.58 per share, beating Wall Street expectations

These results, coupled with the raised forecast and AI momentum, pushed Salesforce’s shares up by 1% in extended trading, despite a year-to-date decline of 18%, making it one of the worst-performing tech stocks in the S&P 500 Index so far.

AI Challenges and the Road Ahead

Despite optimism, AI implementation across large enterprises remains complex, primarily due to data silos and fragmented IT infrastructure. The Informatica acquisition aims to bridge this gap, positioning Salesforce as a one-stop-shop for data and AI.

There’s a clear belief within Salesforce that seamless data integration will unlock faster deployment of generative AI tools, enabling businesses to automate workflows, predict trends, and personalize customer engagement at scale.

Investor Sentiment and Market Position

Investor response to Salesforce’s strategy has been mixed. While the AI push is seen as necessary to remain competitive, concerns over valuation, competition, and macroeconomic headwinds continue to weigh on stock performance.

Global software peers like Microsoft have reported steady customer behavior, while others like Workday Inc. have noted an “uncertain environment” due to broader economic and policy-related changes, including new US tariffs and evolving government regulations. However, software companies generally remain insulated from direct import taxes, giving them a relative advantage.

Benioff’s Strategic Balancing Act

CEO Marc Benioff is now at a pivotal point. After temporarily shifting focus toward cost-cutting and profit improvement in response to activist investor pressure, he appears to be pivoting back to his growth-through-acquisition model. The challenge will be balancing financial discipline with innovation, especially in a market where AI, cloud, and data convergence are reshaping competitive dynamics.

With Agentforce gaining traction and Informatica promising to streamline AI deployment, Salesforce is well-positioned to be a leader in enterprise AI, provided execution remains strong.

In Summary:

• Salesforce has raised its annual revenue forecast to as much as $41.3 billion, citing rising demand for AI-based tools.

• The company has closed 4,000+ paid deals for its new Agentforce AI product, marking a significant step in AI adoption.

• It plans to acquire Informatica for $8 billion, reinforcing its data capabilities and helping customers overcome hurdles in AI implementation.

As Salesforce continues to evolve with the AI revolution, its strategic bets on data and automation may prove vital in defining its next phase of growth.

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