Mizuho Picks Salesforce as Top Software Stock for 2026
Software giant Salesforce, a leader in customer relationship management (CRM) solutions, has faced considerable pressure on Wall Street throughout 2025, despite its ambitious push into the burgeoning field of artificial intelligence (AI). The company’s flagship AI initiative, Agentforce, hasn’t instantly ignited the enthusiastic investor confidence many had hoped for, creating vulnerabilities within the stock’s performance. Concerns surrounding a potential AI bubble, intensified competition within the enterprise software sector, slowing revenue growth, and questions about the long-term impact of powerful AI tools on Salesforce’s core business have all contributed to the stock’s challenges. However, the narrative surrounding Salesforce is starting to shift positively. Recent earnings reports have bolstered investor confidence, and analysts are increasingly optimistic about the company’s future.
Salesforce shares have experienced a significant slump, extending last year’s 23.54% sell-off with another sharp decline of 22.88% year-to-date. This underperformance is particularly pronounced when compared to the broader S&P 500 Index, which has risen 15.37% over the past year and 15.19% in 2025. The stock peaked at $367.09 in January but has since fallen approximately 42.37% from that high. This prolonged struggle to regain momentum has led to considerable investor scrutiny. Salesforce, a pioneering force in cloud-based CRM since 1999, is now steering customers toward the next era of digital transformation – one powered by AI.
Agentforce: A Key Driver of Future Growth
At the core of this transformation is Agentforce, Salesforce’s most ambitious AI offering; it introduces autonomous AI agents designed to handle tasks on behalf of both employees and customers. By unifying data from across an organization’s systems, Salesforce provides teams with a complete, 360-degree view of every customer. The company’s suite of tools spanning sales, service, marketing, commerce, and IT enables businesses to work smarter, faster, and in sync. Salesforce’s ecosystem also includes well-known platforms such as Slack, Tableau, and MuleSoft, indicating a breadth of capabilities aimed at comprehensive digital transformation.
Positive Earnings Signal Renewed Investor Confidence
Despite a difficult stretch for the stock, Salesforce’s latest third-quarter earnings update in December 2024 captured investor attention, triggering a notable shift in sentiment. Management’s decision to lift its full-year outlook further fueled the recovery, with CRM shares increasing by 3.7% on December 4th. The results reflected a mix of encouraging strengths and areas that narrowly missed expectations. Revenue reached $10.26 billion, representing a 9% year-over-year increase, though it was slightly below Wall Street’s estimates. However, the earnings story was significantly strengthened by the surge in adjusted earnings per share, which jumped a remarkable 35% year-over-year to $3.25, comfortably exceeding the $2.86 forecast. Salesforce also reported solid backlog expansion, with current remaining performance obligation (cRPO) rising 11% to $29.4 billion, while total RPO increased 12% to $59.5 billion, signaling sustained demand across the business. The company’s subscription and support segment continued to anchor results, with revenue climbing 10% year-over-year to $9.7 billion, demonstrating the resilience of its recurring-revenue model.
Management’s Optimistic Outlook and Analyst Endorsements
CEO Marc Benioff emphasized growing traction in Agentforce, positioning it as a key growth engine alongside the firm’s expanding data portfolio. This momentum is clearly reflected in recurring revenue metrics. Annual recurring revenue (ARR) from Agentforce and Data 360 doubled, soaring 114% year-over-year to $1.4 billion. Agentforce itself surpassed $500 million in ARR during the quarter, posting an extraordinary 330% year-over-year increase. Since launch, Salesforce has signed over 18,500 Agentforce deals, including more than 9,500 paid contracts, a 50% jump from the prior quarter. This strong adoption rate underscores the value of Agentforce within organizations. Mizuho’s inclusion of Salesforce among its top enterprise software picks for 2026 highlights rising confidence in the company’s outlook, noting that Salesforce is “systematically addressing” the challenges that previously limited wider Agentforce adoption, and emphasizes improving execution across the business.
Looking Ahead: A Positive Trajectory
Looking ahead, management’s optimistic tone and revised guidance represent a significant turning point. Salesforce now expects full-year adjusted EPS in the range of $11.75 to $11.77, with revenue projected between $41.45 billion and $41.55 billion – both figures exceeding the company’s previous forecasts. These improved projections signal a renewed belief in Salesforce’s ability to capitalize on the growing demand for AI-powered solutions. Analysts remain bullish, with the consensus rating standing at “Strong Buy," with an average target price of $331.71, suggesting roughly 28.65% upside from current levels, and some exceptionally optimistic forecasts pointing to potential rallies of up to 84.22%. The future for Salesforce appears brighter as it continues to navigate the evolving technological landscape and execute on its strategic initiatives.
