When Does a Willingness to Disrupt Itself Pay Off? Downgrade to Equal-weight

Research evidence excerpt

When Does a Willingness to Disrupt Itself Pay Off? Downgrade to Equal-weight

Idea

July 21, 2026 04:59 AM GMT

Morgan Stanley & Co. LLCMSalesforce, Inc. | North America Adam Wood

Equity Analyst

When Does a Willingness to Adam.Wood@morganstanley.comElizabeth Porter, CFA +1 212 761-3656

Elizabeth.E.Porter@morganstanley.com +1 212 761-3632

Disrupt Itself Pay Off? Kathleen A Keyser

Research Associate

Katie.Keyser@morganstanley.com +1 212 761-0518

Downgrade to Equal-weight

Salesforce, Inc. (CRM.N, CRM UN)

What’s Changed Software | United States of America

Salesforce, Inc. (CRM.N) From To Stock Rating Equal-weight

Rating Overweight Equal-weight Industry View Attractive

Price target $185.00

Price Target $287.00 $185.00

Shr price, close (Jul 20, 2026) $173.79

Mkt cap, curr (mm) $151,371

CRM is actively disrupting itself to position for the agentic era, 52-Week Range $274.00-147.60

but strong Agentforce KPIs have yet to drive an inflection in Fiscal Year Ending 01/26 01/27e 01/28e 01/29e

EPS ($)** 12.52 14.12 16.01 18.37

organic growth as legacy portfolio drags persist. Shares likely to Prior EPS ($)** - - 15.97 18.01

remain range-bound absent a notable growth inflection, leaving P/EEPS ($)§ 11.7621.0 14.1216.8 15.5515.2 17.8013.2

R/R balanced at ~19x GAAP P/E. DG to EW. Div yld (%) 0.8 1.0 1.1 1.2

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

Key Takeaways **§ ==ConsensusBased on consensusdata is providedmethodologyby Refinitiv Estimates

e = Morgan Stanley Research estimates

Agentforce KPIs are inflecting, but AI momentum has yet to bend the cRPO/

Quarterly EPS ($)

organic rev growth curve as legacy assets (namely Commerce, Tableau) continue 2027e 2027e 2028e 2028e

Quarter 2026 Prior Current Prior Current

to drag

Q1 2.58 - 3.88a 3.89 3.90