Enterprise

Salesforce Stock Sinks, But Analysts See Huge Upside

Krishn patel

Krishn patel

— 2 min read
Salesforce (CRM) Stock Warning: Why It's Down 24% and What Wall Street Insiders Predict Next – Don't Miss This Analysis!
Salesforce is down 24%—is this a warning or a massive buying opportunity you can't miss?
  • Market Underperformance: Salesforce (CRM) has significantly lagged the broader market, dropping 24.4% year-to-date while the S&P 500 has climbed 15.6%.
  • Guidance Concerns: Despite beating Q2 2026 earnings expectations, the stock price fell after the company issued a weaker-than-expected revenue forecast for the third quarter.
  • Analyst Optimism: A majority of Wall Street analysts maintain a positive outlook, with a consensus "Moderate Buy" rating and a mean price target suggesting a potential 30.9% upside from current levels.
  • High-End Potential: The most bullish analyst target predicts a massive 70.2% potential increase in the stock's value, signaling significant long-term confidence.

Salesforce Struggles Amid a Bull Market

Salesforce, Inc. (CRM), a global leader in customer relationship management technology with a market cap of $242.2 billion, has found itself on the wrong side of market trends this year. Over the past 52 weeks, the tech giant's shares have fallen by 15.1%, a stark contrast to the S&P 500 Index's 17.5% gain. The year-to-date figures paint an even bleaker picture, with CRM stock plummeting 24.4% as the SPX rose 15.6%.

The company's performance has also failed to keep pace with its sector. The Technology Select Sector SPDR Fund (XLK) has soared 30.1% over the past year, leaving Salesforce shares far behind.

Earnings Beat Can't Mask a Weak Forecast

In a classic case of "good news is bad news," Salesforce reported better-than-expected Q2 2026 results on September 3. The company posted an adjusted EPS of $2.91 on revenues of $10.2 billion, surpassing analyst expectations. However, the market's reaction was swift and negative, with shares dropping 4.9% the following day.

The catalyst for the sell-off was the company's weak Q3 revenue guidance. The forecast of $10.24 billion to $10.29 billion, with a midpoint below consensus estimates, signaled to investors that returns from its significant AI investments, like the new Agentforce platform, may be delayed. The company cited a challenging macroeconomic environment and slower customer spending as primary headwinds.

What Wall Street Analysts Are Saying

Despite the stock's recent troubles, the majority of Wall Street experts remain optimistic. Out of 50 analysts covering Salesforce, the consensus rating is a “Moderate Buy.” This is backed by 35 “Strong Buy” and two “Moderate Buy” ratings, which overwhelmingly outweigh the 12 “Hold” and one “Strong Sell” ratings.

This sentiment has cooled only slightly in recent months, down from 36 “Strong Buy” ratings three months prior. For the full fiscal year, analysts project CRM's EPS will grow 8.8% year-over-year to $8.58, and the company has a strong history of beating earnings estimates.

Is a Major Rebound on the Horizon?

The disconnect between current performance and future expectations is most evident in the price targets. The mean price target from analysts is $330.65, representing a significant 30.9% premium to Salesforce's current trading levels.

For investors willing to look past the short-term volatility, the potential upside is even more dramatic. The highest price target on the Street is $430, which suggests an incredible 70.2% potential gain. Reinforcing this bullish stance, Mizuho Securities analyst Gregg Moskowitz recently reaffirmed a “Buy” rating on the stock, maintaining a $350 price target.

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