Salesforce Stock Drops as Revenue Guidance Falls Short
Salesforce's stock price dropped by 3.27% to $242.35 on Thursday, following the software giant's announcement of a fiscal 2027 revenue guidance that only reached the high end of its previous range.
The lack of a larger increase in revenue guidance disappointed investors, despite management reaffirming its long-term growth trajectory. Analysts maintained a constructive outlook for Salesforce, with J.P. Morgan analyst Samik Chatterjee retaining an Overweight rating and a $265 price target for December 2027.
Chatterjee noted that the event reinforced J.P. Morgan's view that Salesforce can generate additional revenue from its installed base through premium upgrades and Agentforce adoption. Key metrics included in the disclosure showed strong traction among AI-native companies, with nine of the top 10 using Salesforce and ARR from this cohort jumping 435% year over year.
The divergence between high-growth AI-native cohorts and the broader base suggests significant upside potential for Salesforce. The company's reaffirmation of its target for more than $63 billion in fiscal 2030 revenue remains intact, with organic growth expected to accelerate in the second half of fiscal 2027 and beyond.