Salesforce's AI Moves Could Skyrocket Service Cloud Revenue

Zinger Key PointsSalesforce bets on Service Cloud to drive growth, with analysts seeing revenue hit $9.7B in FY26 and trend toward 12% CAGR.Analyst sees Agentforce AI as a key growth lever, with $1.7B revenue potential and 8,000+ customers already signed up.Get daily-updated rankings across momentum, growth, value, trends, and quality to spot the strongest stocks in any market.As the tech industry increasingly pivots towards artificial intelligence,SalesforceCRMis positioning itself at the forefront of this shift with its AI-powered Service Cloud. This strategic move not only highlights the growingimportance of AIin driving business growth but also reshapes investor perceptions of Salesforce’s long-term potential.Bank of America Securitiesanalyst Brad Sillsmaintained a Buyrating on Salesforce with a price target of $350 on Monday.Salesforce is betting big on its largest business unit, Service Cloud, which analysts expect will generate $9.7 billion in fiscal 2026 revenue, making up 25% of total subscription revenue, Sills noted. In the first quarter of fiscal 2026, growth slowed slightly to 7%.Also Read:Salesforce Underperforms Market As Growth Concerns Plague CRM GiantStill, after adjusting for leap year effects and rounding, the analyst noted that the normalized rate stands closer to 8.5%, indicating only a modest deceleration.He noted the slowdown has bottomed out and projects acceleration to 9% in the coming quarters, trending toward 12% in the long run.Sills noted that Service Cloud's growth potential stands out across the industry, with projected incremental gains of 21%, significantly ahead of the next closest competitor at 7%. The analyst attributed this outperformance to Service Cloud's user-friendly interface, deep customization, seamless integration across sales and service, and, most notably, Agentforce, Salesforce's AI-powered service agent suite.He said that add-ons such as Service Cloud Voice, Field Service, Customer Experience Intelligence, and Digital Engagement represent durable upsell opportunities that support this bullish outlook.Sills noted that Salesforce's Agentforce AI suite is becoming a central growth lever. In recent partner conversations, the analyst stated that use cases such as case management, meeting preparation, shipment tracking, and analytics were repeatedly cited.Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100.Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedHe expects Agentforce for Service Cloud to contribute $1.7 billion in revenue over the next five years, helping the platform achieve a compound annual growth rate (CAGR) of 9%, or 12% in an upside scenario. Sills noted that over 8,000 customers have already signed up for AI agents, with more than half of them converting to paying accounts.The analyst noted that the Service Cloud platform provides agents with powerful tools, including AI-driven case routing, knowledge base searches, and self-service customer portals, making it a key enabler of customer satisfaction and lifetime value.Salesforce offers pricing tiers ranging from the $25/month Starter Suite to the $550/month Agentforce 1 edition, which bundles AI credits and Data Cloud capacity for enterprise-scale deployments. According to the analyst, this flexible pricing model facilitates broad adoption across businesses of all sizes.Crucially, Salesforce's go-to-market strategy integrates Agentforce into its existing customer base—60% of which already uses Sales or Service Cloud—allowing for easy cross-sell and bundled offerings, Sills noted. He said that by publicizing case studies from OpenTable, PepsiCo, and other enterprise users, Salesforce aims to demonstrate real-world benefits and drive deeper adoption of Agentforce.The analyst noted that Salesforce is well-positioned to reaccelerate top-line growth with its AI-first vision, full-stack capabilities, and established customer base. He added that Service Cloud's continued evolution, primarily through Agentforce, may very well be the company's ticket to sustained leadership in enterprise software through the end of the decade.Sills projected fiscal 2026 sales of $41.2 billion and EPS of $11.28.CRM Price Action:Salesforce shares were up 1.07% at $260.83 at the time of publication Monday,according to Benzinga Pro.Loading...Loading...Read Next:Alibaba Bleeds Billions As Delivery Price War Erases $100 Billion In Market ValuePhoto: ShutterstockCRMSalesforce Inc$261.051.15%Stock Score Locked: Want to See it?Benzinga Rankings give you vital metrics on any stock – anytime.Reveal Full ScoreEdge RankingsMomentum26.65Growth89.62Quality61.67Value9.38Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .EarningsAnalyst RatingsOptionsDividendsIPOsdate▲▼ticker▲▼name▲▼Price Target▲▼Upside/Downside▲▼Recommendation▲▼Firm▲▼Click to see moreAnalyst RatingsupdatesAnalyst CalendarJoin Benzinga Edge and unlock all the major upgrades, downgrades, and changes to the market's most accurate analysts.Click to JoinPosted In:NewsPrice TargetReiterationAnalyst RatingsTrading IdeasExpert Ideas