Salesforce: RPO Growth Inflection Could Be The Next Catalyst
Summary
- CRM's stock has lost upside momentum, with revenue growth slowing and margins contracting in 1Q, weighing on earnings and FCF generation.
- 2Q FY2026 guidance points to a potential growth rebound, helped by a favorable currency tailwind and a stable margin outlook.
- Soft RPO guidance and slowing bookings raise concerns about the demand outlook and challenge CRM's agentic AI strategy.
- Recent acquisitions like Informatica and Moonhub could support long-term growth, but their financial impact may not materialize in FY2026.
- The stock's valuation has pulled back in recent months, now trading around 18x forward P/CF, which creates an attractive entry point.
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