Salesforce (NYSE: CRM) saw its stock decline by nearly 5% in pre-market trading on February 27 after the cloud software giant reported weaker-than-expected quarterly revenue and issued a subdued forecast for fiscal 2026.
The disappointing outlook, weighed down by slower-than-expected adoption of its artificial intelligence agent platform, Agentforce, fueled concerns over slowing business momentum.
At press time, CRM stock is trading at $303.31, extending its year-to-date decline of over 9%. The stock remains roughly 20% below its all-time high of $369, reached in December 2024, as doubts over growth prospects continue to pressure shares.
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Weak fiscal 2026 guidance disappoints investors
Salesforce posted stronger-than-expected earnings, reporting an adjusted EPS of $2.78, beating the $2.61 estimate. However, revenue came in at $9.99 billion, falling short of the $10.04 billion consensus.
Investor sentiment took a further hit after the company’s fiscal 2026 guidance came in below expectations.
For Q1 2026, Salesforce projected revenue between $9.71 billion and $9.76 billion, missing Wall Street’s expectation of $9.9 billion. Its full-year revenue forecast of $40.5 billion to $40.9 billion also came in below analysts’ estimates of $41.35 billion.
Meanwhile, the company’s adjusted EPS guidance of $11.09 to $11.17 for fiscal 2026 narrowly missed the $11.18 consensus, further contributing to the concerns over the company’s growth trajectory.
Agentforce faces slower adoption
Salesforce has been aggressively expanding its artificial intelligence (AI) capabilities, integrating AI agents into its cloud-based software to automate digital tasks. Since its launch in October, Agentforce has secured over 3,000 paid deals and facilitated 380,000 customer interactions with minimal human intervention.
However, despite this early traction, Agentforce’s revenue contribution in fiscal 2026 is expected to be modest, with a more meaningful financial impact projected for fiscal 2027.CFO Amy Weaver noted that the adoption cycle is still early, with customer deployments ramping up gradually.
Finally, on Agentforce, we are incredibly excited about the customer momentum we are seeing. However, the adoption cycle is still early as we focus on deployment with our customers. As a result, we are assuming a modest contribution to revenue in fiscal ’26. We expect the momentum to build throughout the year, driving a more meaningful contribution in fiscal ’27. – Amy Weaver
Meanwhile, analysts remain cautious, citing the high costs and uncertain return on investment in Salesforce’s AI-driven strategy.
Analysts revise Salesforce stock ratings
Following the earnings release, analysts lowered their price targets on Salesforce stock, citing mixed results and weaker guidance.
Bernstein analyst Mark Moerdler maintained an ‘Underperform’ rating on CRM while slashing its price target from $286 to $243, citing concerns over the company’s maturity in a highly competitive market and overly ambitious expectations for Agentforce.
Meanwhile, Stifel analyst Parker Lane, despite lowering his price target from $425 to $375, retained a ‘Buy’ rating, noting that the market overreacted to short-term guidance, while Agentforce’s long-term prospects remain strong.
Similarly, Northland revised its target from $440 to $423, highlighting the 5,000 Agentforce deals as a sign of solid traction, though it noted that Salesforce’s FY26 guidance appears conservative.
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