Salesforce: AI Adoption Is Surging, But Revenue Still Isn't Following - Here's Why

Salesforce is re-rated as BUY, citing undervaluation and strong adoption metrics despite revenue growth deceleration. CRM's Q1'27 organic revenue growth was 8.7%, with AI solution adoption outpacing actual revenue acceleration due to unclear pricing models. Performance metrics—ARR, token growth, and customer expansion—highlight robust AI adoption, but revenue lag persists amid complex pricing structures. CRM trades at a P/E of 13.6x versus the sector's 24x, offering attractive risk-reward despite competitive pressures from MSFT, ORCL, and NOW.

Since my last coverage of Salesforce’s ( CRM ), in which I focused on the lag between the revenue growth rate and organic growth, the stock is down about 7%. The company continues to