This article first appeared on GuruFocus.
Enterprise software business Salesforce Inc. (CRM, Financials) is scheduled to report profits on Aug. 26, and its shares are up nearly 5% in the past five days. The rally is focusing on the company’s AI division in particular, Agentforce.Salesforce says Agentforce has crossed $1 billion in yearly sales, and the company’s AI and data software revenue is approximately $3.4 billion in total. That gives investors a more tangible method to see whether Salesforce’s AI push is converting into meaningful income and not just product launches.Wall Street is looking for about $11.33 billion in sales in the fiscal second quarter. Analysts are also expecting between $3.09 and $3.27 in earnings per share.Salesforce reported a great first quarter with $11.13 billion in revenue and $3.88 per share in profitability. Management also boosted its full-year sales target to approximately $46 billion. The corporation ends the report with $33.6 billion in remaining contract value and a large share repurchase program.The big question for investors is whether Agentforce can keep up the rapid growth needed to justify the stock’s recent comeback and lift the growth picture more broadly.