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Special Report
Salesforce Stock Is Coiled Like a Spring and Ready to Rebound
Written by Thomas Hughes. Article Posted: 12/5/2025.
Article Highlights
- Salesforce’s Q3 results affirm that its AI strategy is sound and provides incentives for businesses to accelerate AI adoption.
- Strong cash flow continues to grow in Q3, supporting a robust capital return outlook.
- Market dynamics suggest a robust rebound lies ahead and may begin before the year’s end.
An examination of Salesforce’s (NYSE: CRM) stock price chart reveals a market coiled up like a spring.
On one hand, its blue-chip, tech-growth business is healthy and commands broad-based market support.
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On the other hand, concerns about its AI strategyand growth outlook have compressed price action. The chart shows solid support at the bottom of a range in December 2025, along with signs of underlying market strength.
The two signals of most interest are the divergences in stochastic and MACD on the weekly price action chart. Divergences such as these—when price action hits a new low but the indicators do not follow—suggest that bears have lost control and bulls are now in charge.
At the same time, these indicators are poised to generate strong bullish signals, and early pre-market action following the Q3 release has confirmed that setup. The question is whether the broader market will follow through — the Q3 results and guidance update suggest it will.
Q3 Earnings Reflect Accelerating Adoption of AI Applications
Salesforce’s Q3 results and guidance update are significant for several reasons: their strength and their impact on adoption. Adoption is crucial for AI applications globally, and these results not only show accelerating adoption at Salesforce but are likely to further accelerate it.
Revenue met expectations at $10.28 billion, up 8.7% year-over-year (YOY), while margins expanded significantly, driven by AI’s impact on Salesforce’s business and operations. Salesforce is becoming a poster child for how AI can improve profitability.
Internal metrics are also strong. The core Subscription and Support business grew 10%, driven by AI adoption and increased agent utilization. Agentforce and Data 360 annual recurring revenue rose 114%, with Agentforce itself up 330%, driven by new and existing clients. The client mix is another signal of momentum: 50% of Agentforce deals came from existing clients expanding their usage.
The remaining performance obligation (RPO) also points to accelerating business in upcoming quarters, having risen 12% compared with the 9% revenue gain.
Margins and earnings are accelerating as well, supporting the company’s long-term profitability goals. Key takeaways from Q3: operating cash flow grew 17% versus an 8.7% top-line advance, and free cash flow equaled about 95% of operating cash flow and was up 22% YOY.
Looking ahead, the company expects these strengths to continue, issuing better-than-expected guidance with EPS targets above MarketBeat’s reported consensus. Analysts are targeting $11.38 in adjusted full-year earnings; the company expects closer to $11.75 and is likely being conservative in its estimates.
Salesforce Analysts Signal a Bullish Shift in Sentiment Trends
Analysts never turned outright bearish on the stock, but a series of price target reductions was enough to cap gains and pressure the market in 2025.
Post-release activity includes numerous reaffirmed or reiterated ratings and price targets, signaling that the sentiment downdraft may be over.
As of early December, the consensus among 39 analysts is a Moderate Buy with a forecast for 35% upside. A move to that consensus would push the stock above key moving averages and resistance levels, near the high end of its trading range and within striking distance of a record high.
Institutions have been accumulating CRM stockthroughout 2025, providing solid support and are unlikely to change course soon. The company’s improving outlook, including rising profitability, is generating significant operating and free cash flow.
Free cash flow is a fundamental factor underpinning the stock price outlook because it enables capital returns. The dividend is modest — yielding only 0.7%— but buybacks are more meaningful, reducing the share count by 1.3% for the quarter and year to date, and are expected to continue into the current quarter and next year.
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