CRM CY4Q25: Agentforce Remained Slow with Early Sign of Cannibalization

We surveyed 3 CRM experts (2 channel partners, 1 former APAC sales specialist). JanQ (FY4Q26) results were mixed: legacy business slowed while Agentforce and Data Cloud posted insufficient growth, failing to offset the decline. Moreover, Agentforce adoption remains early-stage; some high-usage customers are shifting from legacy seat-based revenue, reducing recurring totals. Meanwhile, rising AI budgets are increasing spending pressure on horizontal SaaS, though LLM products have not yet directly impacted CRM’s core business.

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Lukewarm JanQ performance and Stable 2026 outlook

Global Channel Expert A (on a calendar year basis)

• The 2025 global CRM business totaled $492M, +3-4% YoY, below the initial expectation of 6.5-7.5% YoY; 2H25 came in below expectations.
• Reasons for the miss:
  • 2H IT budget optimization weighed heavily on CRM; customers allocated more spend toward AI projects involving direct LLM integration, with horizontal SaaS most impacted
  • Not necessarily a direct budget shift, but customers’ incremental budgets increasingly went to AI projects.
  • CRM saw a limited year-end budget flush (significantly less than NOW)
• By product line, Sales Cloud and Service Cloud still grew 6-7% YoY. This contrasts with weaker segments outlined below.