Salesforce, Inc. (CRM) experienced a significant share price decline of 17.9% over the past year, compared to a 10.7% increase in the Zacks Computer – Software industry. In contrast, competitors such as Microsoft Corporation (MSFT) and Oracle Corporation (ORCL) saw their shares increase by 14.1% and 23%, respectively.
Revenue growth for Salesforce has slowed, with an 8.7% increase reported in the first nine months of fiscal 2026, down from previous double-digit growth. Analysts project revenue growth of just 9.5% and 11% for fiscal years 2026 and 2027. Furthermore, earnings per share (EPS) growth is expected to drop to a 15% CAGR over the next five years, compared to 27.8% in the past five years. Salesforce is implementing artificial intelligence across its product lines, with a notable $1.4 billion in recurring revenues from AI-driven products in Q3 of fiscal 2026, reflecting a 114% year-over-year increase.
Looking ahead, Salesforce presents a forward 12-month price-to-earnings (P/E) multiple of 20.16, significantly lower than the industry average of 28.47. This valuation, alongside its strategic focus on enterprise software and AI integration, provides a case for investors to hold onto Salesforce stock despite its recent underperformance.
