Salesforce, Inc. (CRM) shares have fallen 16.8% over the past six months, significantly underperforming the Zacks Computer and Technology sector, which gained 10.8%. The company reported an 8.7% year-over-year revenue increase for the first nine months of fiscal 2026, marking a slowdown from its previous double-digit growth. Analysts project revenues to grow by 9.5% and 10.9% in fiscal 2026 and 2027, respectively.
Salesforce is facing a decelerating growth trend amid cautious enterprise spending due to economic uncertainty. The company’s earnings per share (EPS) growth forecast has been revised to a compound annual growth rate (CAGR) of 15% over the next five years, down from 27.8%. Additionally, worldwide IT spending is expected to increase by 9.8% to $6.08 trillion in 2026, with software projected to grow by 15.2% to $1.43 trillion, indicating a continued demand for Salesforce’s solutions.
Salesforce’s stock trades at a forward P/E ratio of 14.89, below the sector average of 25.91, making it comparatively cheaper than competitors like SAP, Microsoft, and Oracle. As of now, Salesforce holds a Zacks Rank #2 (Buy), indicating a potential investment opportunity despite its recent struggles.
