Salesforce: F1Q Insights - Beginning of a Headless Future?

Research evidence excerpt

Salesforce: F1Q Insights - Beginning of a Headless Future?

Deutsche Bank

Research

Rating Company Date

Buy Salesforce 18 May 2026

North America Reuters Bloomberg Rating Buy

United States CRM.N CRM US Price target (USD) 255.00 Price at 15 May 26 173.51

52-week range 291.15 – 164.96

TMT

Software Valuation & Risks

F1Q Insights - Beginning of a Headless

Future? BradResearchZelnickAnalyst

+1-212-250-8563

We expect Salesforce to report a seasonally slow but steady start to FY27, with

Bhavin Shah, CFA results likely meeting muted expectations amidst a tenuous backdrop for SaaS. Research Analyst

While not completely unique to the company, our field conversations leave us +1-212-250-6775

expecting less upside to key metrics as compared to recent quarters. Accordingly,

we think F1Q is unlikely to result in any meaningful estimate revisions which we Chris Fountain

Research Associate believe is required to sway sentiment and catalyze the stock. While we were

+1-212-250-1575

disappointed by the company's go-forward disclosure update intra-quarter (i.e.

no new leading metrics included), we believe commentary on NNAOV growth Nick Giovacchini

trajectory and how to think about Agentforce incrementality will be key areas of Research Associate

focus. All considered, we think the risk/reward leans favorably with shares having +1-212-250-9075

underperformed the IGV by ~21% since last earnings (and trading at 10x Street

EV/CY27E uFCF and 13x ex-SBC) with FY27 poised for 2H acceleration.

However, we acknowledge its depressed valuation reflects longer-term AI

uncertainty, possibly limiting near-term share outperformance barring significant

estimate revisions. We tend to believe AI-related concerns underappreciate the