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CRM · Forward model · Professional services and other · Bull case

What has to happen in Professional services and other

Model as of

This page changes Professional services and other inside the complete CRM model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

CRM forward model
Horizon
Consolidated fair value $391.24 all other verticals held in this portfolio case
Final-quarter revenue $545M 3% of company revenue
Explicit segment contribution −$973M EBITDA less segment capex, before corporate items

Agentforce consumption re-accelerates the contracted book, margins run two and a half points above guidance, and the market pays 5.2x revenue for a re-accelerating platform - which is now roughly what the market already pays. FY30 revenue of $67.3bn, comfortably past the target. Fair value $391.24.

Professional services and other

Basis quarter$525M
Final quarter$545M
Implied CAGR+1%
Final revenue mix3%

Implementation, consulting and training. Under 5% of revenue, shrinking in absolute terms, and reported at a gross loss every quarter - it exists to land and expand the subscription business rather than to earn.

Last four quarters
2025 Q4 $533M Reported
2026 Q1 $526M Reported
2026 Q2 $540M Reported
2026 Q3 $525M Reported
Implementation and consultingTraining
Sequential growth −1.0%/qtr decaying toward −0.3% Revenue fell from $597M to $525M across the thirteen reported quarters, 1.07% a quarter compounded; the trailing four quarters ($546M to $525M) run 0.98%. Moved from 0.7% to 1.0%, the round number between them, because the published 0.7% no longer matched its own rationale text or the arithmetic.
Professional services and other

Latest: $545M (2031Q3E)

Period Value
2023Q3 $597M
2023Q4 $579M
2024Q1 $539M
2024Q2 $548M
2024Q3 $561M
2024Q4 $565M
2025Q1 $542M
2025Q2 $532M
2025Q3 $546M
2025Q4 $533M
2026Q1 $526M
2026Q2 $540M
2026Q3 $525M
2026Q4E $524M
2027Q1E $523M
2027Q2E $523M
2027Q3E $523M
2027Q4E $523M
2028Q1E $523M
2028Q2E $524M
2028Q3E $525M
2028Q4E $526M
2029Q1E $527M
2029Q2E $528M
2029Q3E $530M
2029Q4E $531M
2030Q1E $533M
2030Q2E $535M
2030Q3E $537M
2030Q4E $539M
2031Q1E $541M
2031Q2E $543M
2031Q3E $545M

Assumptions & reasoning

  • This line runs a gross LOSS every quarter and the loss got materially worse: negative 19.6% in the basis quarter against negative 14.3% in April. Cost of revenues of $628M against $525M of revenue - revenue fell 3.8% year on year while the cost of delivering it rose 5.2%. That is REPORTED on both lines, not assumed, and it is why the model carries this business separately rather than folding it into subscription.
  • The terminal margin is left at negative 5.0%, which the print now argues against: the basis quarter is 5.3 points worse than the last one, so the glide has further to travel and starts from a worse place. Nothing in the release says the delivery cost base is being fixed, and one quarter is not a trend, so the terminal is not moved - but if the next print prints another sub-negative-19% quarter, the negative 5.0% terminal is the assumption to re-cut.
  • It is under 5% of revenue and shrinking, so it moves the fair value very little; it is kept because Salesforce reports it and removing it would break the reconciliation to consolidated revenue.
  • Growth is the honest driver: Salesforce publishes no engagement count, utilisation rate or day rate for this business.
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