Wall Street is taking a hard look at Salesforce following its latest earnings report, sparking a mixed reaction. 

The stock is a member of the Dow Jones Industrial Average and one of the index’s newer dividend-paying components, which makes the recent analyst action all the more noteworthy for income investors.

Goldman Sachs lowered its price target on Salesforce (CRM) stock to $281, down from $330, while keeping a “buy” rating on the tech stock, per Tipranks.

It’s a significant reset but not an exit call, given the investment bank still sees upside from current levels.

Salesforce is optimistic on its widening AI moat.

Goldman Sachs trims CRM stock outlook

Bloomberg/Getty Images Salesforce’s revenue, subscription revenue, and earnings margins all beat Wall Street expectations.

For its fiscal fourth quarter ending Jan. 31, the company reported the following, per CNBC.

  • Salesforce reported revenue of $11.20 billion versus estimates of $11.18 billion.
  • Comparatively, adjusted EPS stood at $3.81 above estimates of $3.04. 

CRM forecast fiscal 2027 revenue at a midpoint estimate of $46 billion, indicating year-over-year growth of 10%, which was in line with consensus. 

Related: Salesforce quietly cuts hundreds in AI-related layoffs

However, it guided operating margins about 60 basis points below what analysts had penciled in.

That margin miss, even if modest, spooked some investors who were hoping for more profit expansion alongside revenue growth.

The bigger question Goldman flagged is hovering over Salesforce for months: Can the company turn its artificial intelligence product, Agentforce, into a durable growth engine before newer competitors close the gap?

Is Salesforce a top dividend stock to own?

Down 47% from all-time highs, Salesforce stock offers shareholders a dividend yield of 0.9%.

Given an annual payout of $1.76 per share, the yearly dividend expense for CRM stock is about $1.65 billion. 

Comparatively, its free cash flow is forecast to increase from $14.40 billion in fiscal 2026 to $15.9 billion in 2027 and $21 billion in 2030. 

CRM has enough to more than double its dividend and still reinvest in growth projects and accretive acquisitions. 

CRM stock: Key dividend metrics

  • Annual dividend: Salesforce established a rate of $1.76 per share.
  • Dividend yield: It reached approximately 0.9%, based on recent share price.
  • Payout ratio: It represented about 10.4% of FCF.
  • Dividend growth: Salesforce initiated its dividend in early 2024, marking a new chapter for the stock. 
  • Share repurchase authorization: At $50 billion, it was one of the largest buyback programs in software history.
  • Free cash flow: The company generated more than $14 billion in free cash flow in fiscal 2026, returning 99% to shareholders via dividends and buybacks.

The buyback program is arguably the more important capital return story here. The ongoing drawdown allows shareholders to “buy the dip” and benefit from a growing dividend payout over time. 

Salesforce’s Agentforce momentum is real 

Here’s what’s working in Salesforce’s favor. 

Agentforce, its AI-powered platform for automating customer service and other business functions, has grown from essentially zero to an annualized revenue run rate of $800 million in just 15 months. 

CRM closed 29,000 Agentforce deals, up 50% quarter over quarter (QoQ), which indicates this product is gaining massive commercial traction. 

Salesforce General Manager Madhav Thattai shared his perspective.

Chief Executive Officer Marc Benioff said on the earnings call that Salesforce has processed mroe than 19 trillion AI tokens to date.

It also introduced a new metric, Agentic Work Units (AWUs), to better track the actual work its AI agents complete on behalf of customers.  In the fourth quarter alone, the platform delivered 771 million AWUs.

On the customer side, names such as Wyndham Hotels, SharkNinja, and General Motors are already using Agentforce at scale. 

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Wyndham reported5,000 Agentforce deployments across 8,300 hotels, along with a 2% increase in direct bookings tied to AI voice agents.

Combined Agentforce and Data 360 annualized revenue, including Informatica, now exceeds $2.9 billion, up more than 200% YoY.

The SaaS giant also boosted its fiscal 2030 revenue target to $63 billion, up from a prior target of more than $60 billion.

What is the CRM stock price target?

Analysts tracking Salesforce forecast revenue to increase from $41.53 billion in fiscal 2026 to $60 billion in fiscal 2030.

In this period, free cash flow is forecast to expand from $14.4 billion to $21 billion. 

If CRM stock trades at 15x forward FCF, which is above the current multiple, it could return over 70% over the next three years. 

Out of the 40 analysts covering CRM stock, 29 recommend “strong buy,” 10 recommend “hold,” and one recommends “strong sell.”

The average CRM stock price target is $275, 41% above current levels. 

Related: Salesforce quietly raised its dividend to pacify activist funds