The salesforce stock has already dropped more than 28% in 2026 so far, as reported by Reuters. Experts say demand is weak because companies are cutting tech spending due to global economic uncertainty. Businesses are now spending only on essential software and cost-cutting tools. Investors are also worried because Salesforce is spending billions on AI technology, which is risky.
There is fear that new AI startups could disrupt traditional software companies. Despite short-term worries, Salesforce raised its long-term 2030 revenue target to $63 billion. The company also announced a huge $50 billion share buyback plan.
Latest earnings results of CMR
Salesforce reported $11.20 billion revenue in the fourth quarter, slightly beating estimates. Adjusted earnings were $3.81 per share, higher than the expected $3.04, as stated by CNBC. Revenue grew 12% year-over-year, which is the fastest growth in two years. Net income rose to $1.94 billion from $1.71 billion last year. Contracted future revenue reached $35.1 billion, above expectations.
AI investments & business moves
Salesforce is strongly pushing its Agentforce AI technology to automate customer service work. Annual revenue from Agentforce AI crossed $800 million. The company launched an AI Slackbot assistant inside its Slack app.
Salesforce also completed its $8 billion acquisition of Informatica. Informatica added $399 million revenue during the quarter, as noted by CNBC. The company also plans to buy marketing firm Qualified.
CEO Marc Benioff said the buyback happened because the stock price is low right now. Salesforce made an $811 million gain from its investment in Anthropic. Benioff said Salesforce has invested about $330 million in Anthropic.
Market & competition pressure
Investors worry that generative AI could slow growth of big software companies. Recently, IBM stock dropped 13% after an AI coding tool announcement, as cited by CNBC. During the quarter, five customers of ServiceNow switched to Salesforce products. Analysts at Morgan Stanley said AI growth is still in its early stages.
While crm stock fell 28% this year, the S&P 500 rose about 1%. Salesforce reported strong earnings, but its weak 2027 forecast and heavy AI spending worried investors, causing crm stock to fall even as the company focuses on long-term AI growth.
FAQs
Q1. Why did CRM stock fall recently?
CRM stock fell because Salesforce gave a weak 2027 revenue forecast, which worried investors about slow future growth.
Q2. Is Salesforce still growing despite the weak forecast?
Yes, Salesforce is still growing because its latest earnings were strong and it is investing heavily in AI for future demand.