1. Salesforce Inc. (NYSE:CRM)
TTM Net Income: $5.63 Billion
5-Year Net Income CAGR: 42.75%
5-Year Revenue CAGR: 19.88%
Number of Hedge Fund Holders: 117
Salesforce Inc. (NYSE:CRM) is a leading American cloud-based software company that specializes in customer relationship management (CRM) software and applications that cover sales, customer service, marketing, e-commerce, analytics, and application development. As the world’s top AI CRM platform, Salesforce serves over 150,000 businesses with its cloud-based software solutions.
The company is making significant strides in transforming enterprise software with its new Agentforce AI platform. This innovative platform allows businesses to create and customize autonomous agents, which can automate workflows across various functions such as sales, service, and marketing. By integrating its core technologies with AI capabilities, Salesforce is enhancing customer interactions and improving overall efficiency. The company has already seen impressive results, signing 1,500 AI deals in its second quarter fiscal 2025, reflecting strong demand for its AI-driven solutions.
Recently, Salesforce Inc. (NYSE:CRM) announced that it has signed a definitive agreement to acquire Tenyx, a developer of AI-powered voice agents. This acquisition will enhance the company’s autonomous agent capabilities and improve customer service interactions.
For Q2 2025, Salesforce reported a revenue of $9.33 billion, an 8% increase year-over-year. The company’s operating cash flow reached $892 million, up 10% year-over-year. In Q2, the number of paid customers increased by 130% compared to the same time last year, and the count of customers spending over $1 million each year almost doubled. Salesforce Inc. (NYSE:CRM) returned $4.3 billion to shareholders through share repurchases and issued nearly $400 million in dividend payments to stockholders.
These results underscore the company’s strong financial performance and commitment to leveraging AI for future growth.
Remaining performance obligations (RPO), which indicate all future revenue under contract, reached $53.5 billion at the end of Q2 2025, marking a 15% increase year-over-year.
Over the past five years, Salesforce Inc. (NYSE:CRM) has grown its revenue at a compound annual growth rate (CAGR) of 19.88%, while its net income has increased at a CAGR of 42.75% during the same period.
According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 117 hedge funds held stakes in Salesforce Inc. (NYSE:CRM).
Parnassus Investments stated the following regarding Salesforce Inc. (NYSE:CRM) in its “Parnassus Growth Equity Fund” second quarter 2024 investor letter:
“Salesforce Inc.’s (NYSE:CRM) growth continues to moderate, and investors question its prospect as it relates to AI. We remain confident that the company, which developed the original salesforce automation product and pioneered the SaaS (software as a service) delivery model, is well positioned to capitalize on emerging AI opportunities.”
Overall, CRM ranks first among the 8 high-growth software stocks that are profitable in 2024. While we acknowledge the potential of software companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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