Solid 3QFY26 results; robust Agentforce and Data 360 momentum

Solid 3QFY26 results; robust Agentforce andData 360 momentum Target PriceUS$392.00(Previous TPUS$388.00)Up/Downside64.2%Current PriceUS$238.72 Salesforceannounced 3QFY26 results: total revenue grew by 9% YoY toUS$10.3bn, in line withBloombergconsensus estimate; non-GAAP operatingincome was up by 17% YoY to US$3.6bn, 4% ahead of consensus estimatemainly due to the timing of expenses and bad debt expense adjustment. cRPOincreased by 11% YoY to US$29.4bn, c.100bps ahead of the guidance, primarilythanks to the strong bookings on the back of solid Agentforce momentum.Agentforce and Data 360ARRreachedc.US$1.4bn in 3QFY26,up 114%YoY.For 4QFY26E, managementexpectedtotal revenue to increase by 11-12% toUS$11.13-11.23bn,includingc.3pptscontributionfromInformaticaconsolidation; and cRPO to grow by c.15% YoY,includingc.4ppts Informaticacontribution. In view of the strong momentum of Agentforce and Data 360,whichweexpect to have more meaningful contribution in FY27/28E,weraise ourFY26-28E totalrevenueforecast by 0-3%, and raise our target price by 1% toUS$392.0 based on 21x FY26E EV/EBITDA. Maintain BUY. US Software & IT Services Saiyi HE, CFA(852) 3916 1739hesaiyi@cmbi.com.hk Wentao LU, CFAluwentao@cmbi.com.hk Ye TAO, CFAfranktao@cmbi.com.hk Expect AOV growth to accelerate in the coming quarters.cRPOgrewby11% YoY to US$29.4bn in 3QFY26, driven by strong bookings on solidAgentforcemomentum,and modest benefits from early renewals.Managementnotedthat the Net New AOV growth outpaced AOV growth in3QFY26, the first time since FY22, implying AOV growthcouldacceleratein the comingquarters. The company also continued to makeprogressindifferent product verticals such as ITSM, life sciences cloud and publicsectorsolutions. The new bookings of life sciences cloudtripledYoY, andthe ARR of public sector solutions grew by c.50% YoY in 3QFY26. Joanna Ma(852) 3761 8838joannama@cmbi.com.hk Stock Data Strong Agentforce adoption and consumption.Agentforce and Data 360ARR grew by 114% YoY to c.US$1.4bn in 3QFY26, within whichAgentforceARRincreased by 330% YoY to US$500mn. The customers’adoption andconsumption were strong: 1) Agentforce has processedover3.2tntokensand powered 1.2bn LLM callsthroughtheLLM gateway.In Oct 2025 alone,token usage grew by 25% MoM to c.540bn.2)The companyhasclosed9,500paidAgentforcedeals since its launch,up by 50% QoQ.Agentforceaccounts in productiongrew by70%QoQ in 3QFY26. 3)50% of Agentforceand Data 360 bookingsin 3QFY26came from existing customer expansion.We remain constructive on Salesforce’s value proposition in the AI agentmarket, given its robust datainfrastructure, know-how in various workflowsand strong product capabilities. Enhancedoperatingefficiency.Non-GAAP OPM rose by 2.4ppt YoY to35.5% in 3QFY26.SalesforceleveragesAI to enhance itsefficiency: 1) itsSDR agent has processedhundreds of thousands of leads; 2)Agentforceonits customer service website processed2mnconversationsin 3QFY26.ManagementraisedFY26E operating cash flow growth forecast to +13-14%YoY (previous: +12-13% YoY), in view of the strong booking performance.The company is on track todeliverits long-term financial target of overUS$60bn revenue (excl. Informatica) and the“rule of 50”by FY30E. Source: FactSet Business forecasts update and valuation Valuation We valueSalesforce at US$392.0 per share based on an unchanged 21x FY26EEV/EBITDA. Our target EV/EBITDA is at a discount to the sector average (27x), givenSalesforce earnings growth has entered a more mature stage. Disclosures& Disclaimers Analyst CertificationThe research analyst who is primary responsible for the content of this research report, in wholeor in part, certifies that with respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or hercompensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by TheHong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this researchreport 3 business days after the date of issue of this report; (3) serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 months: Stock with potential return of +15% to-10% over next 12 months: Stock with potential loss of over 10% over next 12 months: Stock is not rated byCMBIGM HOLDSELLNOT RATED :Industry expected to outperform the relevant broad market benchmark over next