Salesforce, Inc. (CRM) is experiencing a significant stock decline, trading at a forward 12-month price-to-earnings (P/E) ratio of 13.41, compared to the Zacks Internet – Software industry average of 26.77 as of October 2023. The stock has fallen 31.3% year-to-date, making it one of the poorest performers in the software sector.
Despite this downturn, Salesforce reports a revenue growth of 12% year-over-year in the fourth quarter of fiscal 2026, indicating potential recovery. Management forecasts 12-13% growth for the first quarter and 10-11% for fiscal 2027. As of now, Salesforce remains the leader in customer relationship management, and its recent AI-driven innovations are generating strong recurring revenues, with $2.9 billion reported in Q4 2026.
Concerns over economic instability and the impact of AI on traditional software models have affected investor sentiment across the sector, as major competitors like Microsoft, SAP, and ServiceNow have also seen declines. However, analysts suggest that these valuation levels present an attractive investment opportunity for those looking to buy into Salesforce stock.
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