Strategic acquisitions in real-time conversation intelligence are rapidly transforming enterprise customer relationship platforms. By embedding voice-first artificial intelligence directly into service workflows, software giants can offer seamless, automated contact center operations that resolve complex customer interactions and boost enterprise productivity at scale.
Accelerating its push into voice-powered customer support, Salesforce (CRM) has signed a definitive agreement to acquire AI startup Cresta.
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About Salesforce
Salesforce is a leading cloud-based software company specializing in customer relationship management (CRM), enterprise applications, data analytics, and artificial intelligence. Its platform connects sales, marketing, customer service, and business operations, while Agentforce and Data 360 are expanding its presence in the rapidly growing market for autonomous AI agents and enterprise automation.
CRM Shares and AI Growth Outlook
Salesforce stock has experienced a volatile 2026 as investors reassess traditional software valuations and the potential impact of generative AI on enterprise applications. CRM shares traded around $222.39 on November 3, with a year-to-date total return of approximately 15.48%. The stock received a boost in August after Salesforce reported better-than-expected second-quarter earnings and raised its full-year revenue guidance. However, concerns about AI monetization, competition from emerging AI platforms, and slower growth in conventional software businesses continue to influence investor sentiment.
Salesforce slightly underperformed the S&P 500 Information Technology Index ($SRIT) in year-to-date performance through November 2. CRM delivered a total return of approximately 14.03%, compared with the technology index's 15.96% gain.
Salesforce Results Surpass Estimates
Salesforce reported second-quarter fiscal 2027 revenue of $11.35 billion, up approximately 11% year over year and ahead of analyst expectations of $11.33 billion. Non-GAAP diluted earnings per share reached $5.90, significantly exceeding the consensus estimate of $3.27. However, the adjusted EPS figure included a $2.53-per-share gain from strategic investments, making the headline earnings beat particularly important to interpret alongside underlying operating performance.
Subscription and support revenue increased 12% to $10.8 billion, while current remaining performance obligations climbed 14% to $33.5 billion, highlighting demand for future services. GAAP operating margin stood at 20.5%, compared with a non-GAAP operating margin of 34.1%. Operating cash flow increased 71% to $1.3 billion, while free cash flow rose 81% to $1.1 billion. Meanwhile, Agentforce annual recurring revenue exceeded $1.5 billion, growing more than 240% year over year, and combined Agentforce and Data 360 ARR approached $3.9 billion.
Looking ahead, management raised its fiscal 2027 revenue guidance to $46.1 billion-$46.4 billion, representing annual growth of approximately 11%-12%. Salesforce expects third-quarter revenue between $11.42 billion and $11.50 billion, with non-GAAP EPS of $3.42-$3.44. For the full fiscal year, adjusted EPS guidance stands at $16.67-$16.71.
Salesforce to Acquire Cresta
Salesforce has signed a definitive agreement to acquire Cresta, a voice-first customer experience platform specializing in AI-powered voice agents and customer service automation. The acquisition is expected to strengthen Salesforce's Agentforce and Service Cloud offerings by integrating intelligent voice technology capable of handling complex, high-volume customer interactions. Financial terms were not disclosed, and the transaction is expected to close in the first quarter of fiscal 2028, subject to regulatory approvals and customary closing conditions.
The deal follows Salesforce's recent agreements to acquire Braze for approximately $5.66 billion and AI-powered analytics platform Loops. These acquisitions highlight Salesforce's aggressive expansion into enterprise AI, customer engagement and automated business solutions. By combining Cresta's voice technology with Agentforce, Salesforce aims to connect customer conversations, service operations, and AI-driven outcomes within a unified platform, potentially strengthening its competitive position in the growing AI-powered CRM market.
Should You Buy CRM?
Salesforce's planned acquisition of Cresta highlights its growing commitment to AI-powered customer service, potentially strengthening Agentforce and Service Cloud as demand for intelligent automation increases. However, investors should weigh the opportunity against execution risks and the competitive landscape. Wall Street maintains a "Moderate Buy" consensus rating on CRM, with a mean price target of $286.94, implying 28.7% upside from its current market price. Across 51 analyst ratings, 35 are "Strong Buy", two are "Moderate Buy," 13 are "Hold," and two are "Strong Sell," reflecting broadly positive sentiment with some caution.
On the date of publication, Ruchi Gupta did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
