Salesforce’s weak fourth-quarter results are a sour note for analysts and will do little to halt the software giant’s stock price decline since the start of the year. The customer service software maker’s soft full-year earnings outlook overshadowed last quarter’s sales and bottom line growth. Salesforce expects fiscal 2027 revenue to be between $45.8 billion and $46.2 billion, the lower end of that range below Wall Street’s $46.06 billion estimate. The company also expects adjusted earnings to be between $13.11 and $13.19 per share, compared with the $13.12 per share expected by analysts compiled by LSEG. CRM YTD Mountain 2026 Salesforce Stock Shares were last up more than 2% on Thursday, but were down nearly 4% in the premarket session. The company’s stock price has plummeted more than 25% this year, leading to widespread declines in software as concerns about the disruption of artificial intelligence trample the industry. Year-to-date, the iShares Expanded Technology Software Sector ETF (IGV) is down 22%. Salesforce is working to expand adoption of its Agentforce platform, which uses artificial intelligence to automate customer service. The company announced that Agentforce’s annual revenue exceeded $800 million last quarter, but analysts are concerned that growth is still too slow. “CRM is a mature business in a mature competitive market. Agentforce is still in the early stages of adoption, so we don’t think it will be a driver for re-acceleration in the near term. Large-scale M&A remains a concern, resulting in limited upside risk but significant downside risk,” said Bernstein analyst Mark Meadler. He rates the stock as underperforming. UBS analyst Karl Keilstedt said Agentforce looks promising, but added that the problem lies in the vast majority of Salesforce’s remaining revenue. He said Agentforce accounts for about 2% of revenue, but “the problem is that the other 98% of revenue is being squeezed.” Karstead said this is due to tight app spending as companies focus on AI and data initiatives, as well as weakness in certain Salesforce segments such as marketing and commerce. He is neutral on stocks. Similarly, Goldman Sachs analyst Gabriela Borges argued that Agentforce’s differentiated performance compared to Salesforce’s competitors will be a key driver of stock price going forward. Analysts rate the stock as a Buy. “We believe the key discussion going forward will be how much Salesforce’s domain expertise can deliver better outcomes with Agentforce than newer competitor solutions, and whether Salesforce can monetize these outcomes to drive improvement/sustainable growth in the coming years,” she wrote. In short, analysts’ long-term stance on Salesforce remains mixed across the board, with some lowering their price targets. Here’s how Wall Street’s biggest stores are reacting: Bernstein: Underperform rating, $194 price target The investment firm’s price target was lowered from $223, suggesting an upside of about 1% from Salesforce’s Wednesday closing price of $191.75. “We have been concerned that Salesforce is a mature company in a mature market. While valuations have declined and expectations for AgentForce are being adjusted, we remain concerned about the long-term risk of equity loss from being the largest incumbent in the CRM market and the potential for large-ticket M&A activity given the active M&A market and the company’s history of acquisitions.” UBS: Neutral, $200 UBS forecast at 4% It shows the upper value of. “Salesforce posted a report broadly consistent with feedback from our checks, with strong traction in Agentforce but slowing growth in the rest of the core portfolio. Excluding the boost from the Informatica deal, C/C saw rotational growth of 6% in January Q4, 6-7% in April 1Q, and 7-8% in FY27. ‘s guidance is simply 1-2 percentage points below our expectations, which could help take the wind out of the downturn.”The two-day rally in SaaS/app stocks is content to remain at a neutral rating until the acceleration becomes more pronounced. ” Wells Fargo: Equal weight, $210 Wells Fargo’s target has been lowered from $235, with an upside of nearly 10% expected going forward. “Our expectations remain broadly unchanged as Agentforce’s strength was lower than expected on Q4 upside. Trustee comments continue to call for re-acceleration in 2H27, but given leading indicators are still fading and we maintain EW, we are waiting for clearer signals.” Deutsche Bank: Buy, $255 Deutsche Bank’s forecast is down from $325, 33% above Salesforce’s Wednesday closing price. “Consistent with our fieldwork on revenue, Salesforce reported a mixed quarter, but there were some positive signs of improvement in Agentforce adoption. Key metrics were dominant, but subscription revenue was a little ahead of the curve, as Informatica performance improvements and cRPO growth only met guidance, with organic CC slowing by about 1 point from last quarter to about 9% year-over-year Barclays: Overweight, $265 The bank’s price target suggests the stock could rise 38% from here. “We expect the stock price reaction to CRM’s fourth-quarter results to be relatively modest.[Current remaining performance obligations]were better than consensus, guidance was solid with no major surprises, and we will need to wait until the second half of the year to see the appropriate inflection point.” Goldman Sachs: Buy, $281 Goldman Sachs’ price target represents an upside of approximately 47%. “After Q4 earnings report, CRM is showing an average of -5% annually. Revenue and subscription revenue are in line with the Street, EBIT margin is in line, and cRPO is up 16%/11% USD/CC versus 14% for the Street. FY27 revenue and subscription revenue were 11% in line with the Street, and EBIT margin was guided by 60 bps below. Salesforce also announced a $50 billion share buyback (the largest of its market capitalization). 30%) We believe the key discussion going forward will be how much Salesforce’s domain expertise can deliver better results with Agentforce than newer competitor solutions, and whether Salesforce can monetize these results to drive improvement/sustainable growth in the coming years. ” Morgan Stanley: Overweight, $287 The bank’s price target equates to a 50% upside. “An organic cRPO in line with guidance is likely to cap the stock price in the near term, but management expressed confidence in accelerating growth through specific targets (2H 2027), leading indicators of (new annual net new orders), and expansion of repurchase authorizations to $50 billion. At 11x (enterprise value)/27 years (free cash flow), it’s well worth the wait.” JPMorgan: Overweight, $320 JPMorgan’s price target has been lowered from $365, suggesting a 67% upside. “Despite our sluggish fourth quarter results, Salesforce has seen a clear improvement in internal conditions, prompting stronger and earlier confidence in our organic re-acceleration.”
