Salesforce Stock Falls 8%, But Analysts See 25% Upside

Salesforce stock has fallen by 8% over the past year, closing at $225 on September 29. The decline was driven in part by investor fears about AI models replacing enterprise software, which led to a 29% drop between October and July.

However, CEO Marc Benioff addressed these concerns during the Q2 earnings call, stating 'We've been hearing about this for the last 2 quarters, these dire predictions about the end of software and how the models eat everything.'

The results showed strong revenue growth, with $11.35B (+11% YoY) in Q2 revenue and cRPO of $33.5B (+14%). The company also raised its FY27 revenue guidance to $46.1B-$46.4B.

Despite the rebound, analysts still see 25% upside in Salesforce stock, with a mean target price of $281 sitting 25% above the current close. However, this is down from a year ago when the mean target was $351 against a $258 close, a 36% gap.