BNP highlights bullish takeaways on agentic AI, growth in meetings with Salesforce, Workday, Snowflake
View original at seekingalpha.comBNP highlights bullish takeaways on agentic AI, growth in meetings with Salesforce, Workday, Snowflake [Humans are using laptops and computers to interact with AI, helping them create, code, train AI, or analyze big data with fast, cutting-edge technology.] BNP Paribas highlighted key takeaways, including agentic AI, g…
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Companies are coming back to Salesforce after testing solutions from AI startups like Sierra AI and Decagon AI, and after trying DIY AI
60% confidenceFlex Credit revenues expected to start ramping in fiscal year 2027 for new agentic offerings on outcome-based pricing
60% confidenceLLM costs will weigh on gross margins, but Salesforce can secure volume discounts and expects costs per token to come down over time
60% confidenceSalesforce is well-positioned to win in the new agentic layer due to customer data context, existing systems of work, Atlas Reasoning Engine for workflow orchestration, and engagement layer through Slack
60% confidenceData Cloud offering expected to ramp up in second half, charged on consumption basis based on amount of data
60% confidenceLLM costs will weigh on gross margins, but Salesforce can secure volume discounts and expects costs per token to decline over time
60% confidenceMarketing business will stabilize with new product functionality ramping, but Commerce taking longer to improve due to competitive pressures and R&D resource allocation to AI
60% confidenceCustomers are finding value in using Snowflake's own coding tool for data operations because it is better at identifying patterns and context within Snowflake data while benefiting from Snowflake security and governance controls
60% confidenceSnowflake is committed to maintaining product gross margins at 75% this year despite AI product gross margin headwinds
60% confidenceRevenue growth acceleration expected in H2, potentially as early as Q3
60% confidenceCompany has not seen any mass piping of data out of Salesforce
60% confidenceMargin targets may be lowered as company focuses on accelerating top-line growth and ensuring product portfolio relevance in agentic AI world
60% confidenceSome customers already replacing third-party point solution functionality by running workflows directly in Snowflake
60% confidenceAI native revenues are likely less than 2% of total revenues but may have already helped drive the Q4 beat
60% confidenceSalesforce is doing all of the right things, but the share price will not likely react until Salesforce can 1) demonstrate stability in its core business and 2) demonstrate continued success and adoption of Agentforce along with Data Cloud
60% confidenceData Cloud offering expected to ramp in second half, charged on consumption basis based on data amount
60% confidenceSalesforce has not seen any mass piping of data out of Salesforce to date
60% confidenceWorkday is returning to organic product focus with goal of delivering revenue growth acceleration, potentially improving Bookings growth in H2 FY'27 and revenue growth acceleration in FY'28
60% confidenceMargin targets may be lowered as company focuses on accelerating top-line growth and ensuring product portfolio is relevant in upcoming Agentic AI world
60% confidenceSome customers are already replacing third-party point solution application functionality by running workflows directly in Snowflake
60% confidenceFlex Credit revenues expected to start ramping up in fiscal year 2027 for new agentic offerings on outcome-based pricing
60% confidenceCompany has not seen any mass piping of data out of Salesforce to date
60% confidenceAI native revenue is likely less than 2% but may have already helped drive Q4 beat
60% confidenceWorkday's integrated data model across HCM and Finance provides advantage as it increasingly sells the full suite
60% confidenceCompanies are coming back to Salesforce after testing solutions from AI startups like Sierra AI and Decagon AI, and after trying DIY AI using OpenAI and Anthropic LLMs
60% confidenceWorkday used to generate 60% of growth through existing customer base and 40% through new customers, but new customer growth is now slower
60% confidenceSalesforce is doing all of the right things, but the share price will not likely react until Salesforce can demonstrate stability in its core business and demonstrate continued success and adoption of Agentforce along with Data Cloud
60% confidenceWorkday prices initial contracts based on customer employee base size with three-year minimum commitment, with renewals reflecting business growth, CPI inflation, and new functionality
60% confidenceSnowflake is committed to maintaining product gross margins at 75% this year despite AI products creating some gross margin headwind
60% confidenceSalesforce believes it is well-positioned to be a winner in the new agentic layer due to having customer context, systems of work, Atlas Reasoning Engine for agency, and engagement layer with Slack
60% confidence
Data points we hold from this source
| Snowflake Inc. · gross margin target | 75 percent |