Salesforce may offer a better risk-reward than Apple. Its agentic AI is monetizing faster than expected.
The stock trades cheaper and has a bullish sentiment.
Apple's record quarter is strong but faces headwinds.
What happened
Salesforce reported revenue of $11.35 billion, up 10.83%, and non-GAAP EPS of $5.90, beating the $3.27 consensus, though $2.53 per share came from investment gains. Apple posted a record June quarter with revenue of $109.42 billion, up 16.36%.
Why it matters
The two companies represent different AI monetization strategies. Apple treats AI as a device feature, while Salesforce charges directly for agents. Salesforce's Agentforce ARR crossed $1.5 billion, up over 240% year over year, and AI ARR is about to cross $4 billion. Apple trades at 33 forward earnings versus Salesforce at 19.
What to watch
Salesforce faces a test with CloudForce, its Claude-integrated product, going generally available in September, plus Dreamforce and the close of Contentful and Fin. Apple guided to 9%–11% September quarter growth with supply constraints expected to worsen across iPhone, Mac, and iPad.
Ask the AI about this article →
The article contrasts Apple's device-centric AI approach with Salesforce's direct monetization of AI agents. Apple's record quarter, driven by iPhone and Mac demand, shows strong growth but faces near-term headwinds. Salesforce's AI ARR growth and shrinking share count point to a potentially more asymmetric bet. The author's personal lean is toward Salesforce, citing cheaper valuation and faster AI monetization. However, the sustainability of Salesforce's AI ARR growth remains to be seen as pilots mature.
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