Salesforce Stock Sinks to the Bottom of the Dow After Earnings
Salesforce stock tumbled out of the gate Thursday after the tech giant reported mixed fourth-quarter results and issued a soft forecast for the year ahead.


Salesforce (CRM) stock is the worst Dow Jones stock Thursday after the software-as-a-service (SaaS) firm reported mixed results for its fiscal 2025 fourth quarter and issued a weaker-than-expected outlook for fiscal 2026.
In the three months ending January 31, Salesforce said its revenue increased 7.6% year over year to $9.99 billion. Its earnings per share (EPS) rose 21.4% from the year-ago period to $2.78.
"We had an incredible quarter and year, with strong performance across all our key metrics, including the highest cash flow in our company's history and more than $60 billion in RPO," said Salesforce CEO Marc Benioff in a statement.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Benioff added that Salesforce is best-positioned to "lead customers through the digital labor revolution" and is able to "seamlessly integrating our Customer 360 apps, Data Cloud and Agentforce." As a result, the company is able to deliver "unprecedented levels of productivity, efficiency and cost savings for thousands of companies."
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $10.04 billion and earnings of $2.61 per share, according to MarketWatch.
For fiscal year 2026, Salesforce said it expects to achieve revenue in the range of $40.5 billion to $40.9 billion and earnings of $11.09 to $11.17 per share. These forecasts came up short of analysts' expectations for revenue of $41.35 billion and earnings of $11.18 per share.
For its fiscal first quarter, Salesforce anticipates revenue in the range of $9.71 billion to $9.76 billion and earnings between $2.53 to $2.55 per share. Analysts, meanwhile, are calling for fiscal Q1 revenue of $9.9 billion and earnings of $2.61 per share.
Is Salesforce stock a buy, sell or hold?
Salesforce has lagged the broader market over the past 12 months, up 2.9% on a total return basis (price change plus dividend) through its February 26 close vs the S&P 500's 19.1% gain. But Wall Street remains bullish on the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for CRM stock is $386.95, representing implied upside of roughly 30% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Wedbush maintained its Outperform rating (equivalent to a Buy) on the blue chip stock following the earnings release, along with its $425 price target.
"The monetization of Agentforce [Salesforce's AI platform] is still in the early stages of playing out, and we believe that the company is taking a prudent approach to scaling the Agentforce that will pay off over the long term with the AI Revolution now entering the software phase," wrote Wedbush analyst Daniel Ives in a note this morning.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
If Trump Fires Jerome Powell, What Happens To Savings and Mortgage Rates?
President Donald Trump expressed his desire to remove Fed Chair Jerome Powell. If the president is successful, how would it impact your savings accounts?
By Sean Jackson
-
What to Stock Up On (and What to Skip) Before Tariffs Raise Prices
With tariffs set to return on July 8, 2025, prices on everything from appliances to clothing could rise. Learn what to buy now, what to skip and how to protect your budget.
By Laura Gariepy
-
What Happens To Mortgage and Savings Rates If Trump Fires Jerome Powell?
President Donald Trump expressed his desire to remove Fed Chair Jerome Powell. If the president is successful, how would it impact your savings accounts?
By Sean Jackson
-
Why You Need a Trusted Contact for Your Brokerage
Your brokerage or bank needs someone to reach out to if it's concerned you're experiencing fraud or cognitive decline. That's where a trusted contact can help.
By John Waggoner
-
Four Takeaways From Filing Your Taxes to Boost Your Financial Future
Now that another tax season is in the rearview mirror for most of us, what lessons can you take from what you learned about your finances to plan for the future?
By Kate Winget
-
What Claims Adjusters Are Thinking vs What They're Saying
After a natural disaster, few of us are at our best, but here's what to keep in mind when you're interacting with your insurance company's claims adjuster.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS
-
Looking to Make a Job Change? How to Stand Out Like a Pro
To make a strong first impression in interviews or when networking, skip your job title and work history and use an opening gambit that highlights your talents.
By Anne deBruin Sample, CEO
-
Stock Market Today: No 'Powell Put'? No Problem
Investors, traders and speculators look beyond both another Trump post and more signs of slowing economic activity.
By David Dittman
-
First 100 Days: Trump's Impact on Your Finances
Here are some opportunities to consider regarding investing, interest rates and tax cuts as the financial landscape shifts under the new administration.
By Daniel Razvi, Esquire
-
What Would Happen if You Put Your Tax Refund in an IRA?
Not only could you get a tax break, but the compounding effect over 35 years could turn the average refund into nearly $14,000.
By Romi Savova