“`html
Key Points
- Infrastructure software has outperformed application software amidst AI investor excitement.
- Salesforce (NYSE: CRM) and Adobe (NASDAQ: ADBE) are each down over 20% year to date.
- Salesforce’s fiscal 2026 revenue growth is projected at 8-9%; Adobe anticipates 9.5% growth for fiscal 2025.
Despite the Nasdaq Composite gaining 12% this year, Salesforce and Adobe have suffered significant declines over 20%. Their stock struggles highlight challenges in the AI landscape, as both companies face competition that threatens their SaaS business models.
Salesforce’s guidance for FY 2026 includes revenue growth of 8% to 9%, with operating cash-flow growth projected at 10% to 11%. Adobe’s updated guidance indicates 9.5% revenue growth for FY 2025, showing a disconnect between AI capabilities and financial performance.
“`
