Salesforce Sales Cloud, AI Integration, And Cloud Upsells Drive Analyst Confidence In Long-Term Growth

BofA Securities analyst Brad Sills maintained a Buy rating on Salesforce, Inc CRM with a price target of $350 on Monday.

Salesforce Sales Cloud is the company’s flagship offering, generating estimated subscription revenue of $7.9 billion in fiscal 2026. It is growing at an estimated 9% growth rate (constant currency), keeping pace with Sills’ estimate for total company subscription revenue.

Over the years, Salesforce has expanded its offering from front office applications (both organically and inorganically) into other horizontal and vertical industry applications.

Also Read: Salesforce’s Agentforce AI, Data Cloud Strengthen Long-Term Growth Potential: Analyst

Sales Cloud represents 21% of Sills’ fiscal 2026 total subscription revenue and remains a core growth business.

Sills estimated that 40% of 135,000 Salesforce customers (not on freemium) are currently on Sales Cloud, which represents 4.9 million subscribers, a 10% penetration of the global addressable market (16.2 million sales-related workers per US Bureau of Labor Statistics and international = 2 x US).

Sales Cloud is priced per user per month based on the edition chosen, with each edition adding more advanced features. The per-user pricing allows each user to manage their login.

The Starter Suite ($25/user/month) includes only the basic feature for managing accounts and leads. In contrast, Einstein 1 Sales ($500/user/month) consists of all features, including Data Cloud and the Agentforce agentic AI offering.

Sales Cloud is one of Salesforce’s core growth businesses (along with Service Cloud), keeping pace with an estimated total subscription growth of 9%-10% and showing no slowdown.

Sales Cloud expansion deals are driven by Industry Cloud upsells, Revenue Cloud upsells, and the pull-through of more seats to support Revenue Cloud, Industry Cloud, and Data Cloud deployments.

Revenue Cloud is Salesforce’s CPQ solution. Channel feedback suggests Revenue Cloud and the migration from CPQ to Revenue Cloud Advanced (RCA) is driving additional growth for Sales Cloud.

Revenue Cloud is priced as an add-on to Sales Cloud for a $200 monthly subscription versus $165 for Sales Cloud Enterprise, representing an average 120% subscription uplift.

Sales Cloud is the core system of record for the entire Salesforce CRM stack.

Gartner forecasts Sales Cloud to sustain a 25% share of the $39 billion Sales CRM industry through 2027.

However, Salesforce is forecast to capture the most incremental industry growth, driven by advantages such as its integrated platform with internal sales systems, business intelligence features for projection analysis, and AI innovation.

Sills’ calls with SI partners suggested that upselling premium-priced Industry Cloud (estimated 15% ASP uplift to enterprise customers) and Revenue Cloud (12% ASP uplift) represent key growth drivers for Sales Cloud.

Agentforce projects are also mentioned to widen the Sales Cloud user base in many enterprises, driven by demand for a more complete data set and user base.

Finally, while the softening macro pushes out Sills’ near-term expectation for Agentforce revenue, the analyst noted that this would represent a material source of incremental Sales Cloud growth in the coming years.

In his base case Sales Cloud model, the analyst modeled a 5-year CAGR of 10%, assuming 7.5 million subscribers, or 13% user penetration of global sales TAM (up from 10% in fiscal 2026), ASP of $143 (from $135 in fiscal 2026) and 8% Agentforce revenue contribution to Sales Cloud growth.

In a reasonable upside case, the analyst arrived at a 5-year CAGR of 12%, assuming similar user penetration, ASP of $157 from higher Revenue Cloud and Industry Cloud penetration, and a 13% Agentforce contribution to growth.

Sills projected fiscal 2026 revenue of $40.31 billion.

Price Action: CRM shares are trading higher by 4.62% to $288.17 at the last check on Monday.

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