Salesforce Expands AI Bundles: Will Higher Adoption Boost ARR?
Salesforce, Inc. CRM is expanding its AI bundles, aiming to make it easier for customers to adopt its growing suite of artificial intelligence (AI) tools. The company is continuously introducing premium bundles that combine new AI capabilities with its existing applications. Earlier in September 2026, it introduced Core, Advanced and Max editions for Agentforce Sales, Service and Industries, bundling AI, Slack, Tableau Next, security and support into a single purchase.
The early results suggest that its bundled approach could help lift recurring revenues. In the second quarter of fiscal 2027, it revealed that bookings from Agentforce One Edition and Agentforce for Apps more than doubled sequentially. Salesforce also stated premium Slack upgrades have tripled since Slackbot launched. These trends indicate that customers are moving from AI trials toward broader purchases.
The impact is already visible in Salesforce’s AI business. Agentforce ARR (annual recurring revenues) topped $1.5 billion in the second quarter, up more than 240% year over year. Combined Agentforce and Data 360 ARR reached nearly $3.9 billion, rising more than 210%. Meanwhile, customers generated 3.2 billion Agentic Work Units in the quarter, up 97% sequentially, pointing to stronger use of AI agents.
Higher adoption could support Salesforce in multiple ways. Bundles can increase spending from existing customers by adding AI features to current contracts. Deeper use of Agentforce, Slack and Data 360 can make Salesforce’s platform more valuable and expand its recurring revenue base.
Still, AI growth has yet to materially change the company’s overall growth rate. Second-quarter revenues rose 11% year over year to $11.35 billion, while management expects fiscal 2027 revenue growth of 11%-12%. Expanding AI bundles are a promising growth lever. If adoption remains strong, they could gradually accelerate Salesforce’s recurring revenue growth.
Salesforce Rivals Intensify AI Bundle Competition
Salesforce is not the only enterprise software company using bundled AI products to increase customer spending. Its major competitors, Microsoft Corporation MSFT and Oracle Corporation ORCL, are also focusing on a similar approach.
Microsoft is expanding Microsoft 365 Copilot across its software ecosystem. In the fourth quarter of fiscal 2026, Microsoft 365 Copilot surpassed 30 million paid seats, with net seat additions more than doubling sequentially and the number of customers deploying above 50,000 seats growing more than sevenfold year over year. Microsoft’s Dynamics 365 revenues also increased 13% year over year in the fourth quarter, showing continued demand for its business applications.
Oracle is taking a similar approach by adding AI capabilities to its cloud applications. The company is moving beyond traditional per-seat licensing to consumption-based token bundles. This approach lets enterprises pre-purchase agentic AI capacity in a predictable, scalable way across application tiers.
In the fourth quarter of fiscal 2026, Oracle’s Cloud Applications revenues reached $4.1 billion, up 10% year over year, while total cloud revenues jumped 47% to $9.9 billion. Oracle’s AI-focused cloud strategy is also driving strong demand across its broader platform.
Salesforce’s Price Performance, Valuation and Estimates
Salesforce shares have declined 10.6% year to date, while the Zacks Internet – Software industry has risen 9.2%.
Salesforce YTD Price Return Performance
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From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 14.65, significantly below the industry’s average of 30.59.
Salesforce Forward 12-Month P/E Ratio
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The Zacks Consensus Estimate for Salesforce’s fiscal 2027 earnings implies a year-over-year increase of approximately 33.5%, while estimates for fiscal 2028 indicate a 5% decline. Estimates for fiscal 2027 and 2028 earnings have been revised upward in the past 30 days.
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Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
