Salesforce Share Price Jumps 38% as AI Fears Fade
Salesforce investors have reason to be optimistic after a tumultuous first half of 2026, where the software sector experienced a massive sell-off. In February, CEO Marc Benioff called the downturn a 'SaaSpocalypse' and saw it as a buying opportunity, authorizing a $50 billion share repurchase program with an accelerated $25 billion bet on the company's stock. Since then, Salesforce's share price has risen 38% from the end of March.
The second-quarter earnings report in late August further solidified Benioff's assertion that AI fears are unfounded. Revenue growth is being driven by artificial intelligence (AI), with annual recurring revenue about to cross $4 billion, a 210% increase year over year. The company announced a partnership with Anthropic and introduced Claudeforce, which enables users to take actions from within a Claude chatbot window.
Despite the significant jump in the stock price, Salesforce still looks cheap relative to its growth potential. With a solid business that's proving to be a beneficiary of AI more than a victim of it, investors may still be undervaluing the company right now.