Salesforce Stock Could Reach $250 By 2028 As Valuation Resets
Is near $171, about 40% below its 52-week high, but one market view sees room for a rebound to $250 by the end of 2028 as revenue and AI sales keep rising.
Salesforce stock is trading near $171, roughly 40% below its 52-week high of $274, after the market has spent two years treating the software company more like a value stock than a growth favorite. One fresh outlook says the shares could reclaim $250 by the end of 2028.
The case rests on numbers already in Salesforce’s own reports and guidance. The company is valued at about 12 times the midpoint of management’s earnings guidance for this fiscal year, while its latest results showed revenue growth, stronger adjusted earnings and faster cash generation.
Salesforce stock and the valuation reset
The rerating has been sharp. Salesforce, listed on the New York Stock Exchange under CRM, has seen its shares fall almost 40% from the 52-week peak. That drop has shifted investor attention away from the company’s historical premium multiple and toward whether the current valuation now leaves room for a recovery.
According to the Yahoo Finance analysis, the stock’s current pricing reflects skepticism that has gone too far. The argument is not built on a return of AI hype. It is built on growth already showing up in the business, paired with a valuation that would only need to become less pessimistic.
That matters because the stock has already been repriced hard. If sales growth and earnings keep moving in the direction Salesforce outlined, the market may have less reason to keep assigning it a deep discount relative to its past.
What the latest guidance shows
Management’s outlook for fiscal 2027, the year ending January 31, 2027, calls for revenue of $45.9 billion to $46.2 billion, up 11% year over year. Salesforce also guided for non-GAAP, or adjusted, earnings per share of $14.06 to $14.12.
The latest quarter added support to that view. In the first quarter of fiscal 2027, the period ended April 30, 2026, revenue rose 13% year over year to $11.1 billion, helped by the company’s acquisition of Informatica. Adjusted earnings per share jumped 50% to $3.88.
Free cash flow also moved higher. Salesforce reported $6.6 billion in fiscal first-quarter free cash flow, up 4% year over year. Current remaining performance obligations, a measure that gives a window into contracted future revenue, climbed 14% year over year to $33.6 billion.
That is the part investors tend to watch closely. It points to sales already locked in, not just hoped-for demand.
Why AI is still central to the story
The fastest-growing slice of Salesforce’s business is still AI. The company said its Agentforce and Data 360 products reached nearly $3.4 billion in annual recurring revenue in the first quarter, up more than 200% year over year.
It remains a small portion of a $46 billion revenue base, but its pace stands out. The Yahoo Finance piece argues that this growth weakens the idea that AI is only a threat to established software groups. In Salesforce’s case, it is also becoming a source of new revenue.
For investors, the next test is whether that momentum can keep feeding the broader business without another sharp de-rating. The shares may still trade like a value stock today, but the next stretch of earnings and AI adoption will decide whether Salesforce stock stays there.
