Salesforce Stock Slides 30% as AI Hype Fails to Ease Crash Concerns

The share prices at Salesforce have dropped over 30% in two quick slumps over the recent past eliminating millions of dollars of market capitalization and pointing to weakness despite the existing excitement in AI. 

Although the stock is currently being sold at about $185.52 on 25 February 2026, which is nearly equal to the 52-week low of $180, the bull-investors are concentrating on the prospect of the Agentforce program as they appear to be blind to the obvious risks.

AI Hype Masks Costs  

The popular Salesforce development, the AI platform Agentforce, boasts about the implementation of autonomous agents but contains the signs of a looming profitability trap. 

The company has already purchased 10 companies within 6 months increasing the costs of integration as well as raising doubts over quick revenue benefits. 

Analysts are concerned about the pace of AI revenue generation and the “modest” initial revenue impact from Agentforce. 

Core Growth Fades  

Since Salesforce posted record numbers, competitive pricing pressures have been put on Microsoft Dynamics 365 and ServiceNow, which have led to a decline in average selling prices and the propensity of the average to a high-single-digit trend into 2026. 

Chair and CEO of Salesforce, Marc Benioff, said:

“We are raising fiscal year 2026 revenue guidance to $41.45 billion to $41.55 billion, and Q3 cRPO was exceptional, up 11% year-over-year at $29.4 billion, signalling a powerful pipeline of future revenue. Our Agentforce and Data 360 products are the momentum drivers, hitting nearly $1.4 billion in ARR – an explosive 114% year-over-year gain. We now have over 9,500 paid Agentforce deals and 3.2 trillion tokens processed, underscoring our leadership in building the Agentic Enterprise and driving real outcomes.”

The fourth quarter projection show estimated revenue forecast of $40.5 billion to $40.9 billion, up 7% to 8% year over year.

Dilution Drains Value  

The stock-based compensation was also at $805 million in the third quarter which forms 8% of revenue and in consequence dilutes you GAAP earnings per share, despite the non-GAAP measures depicting a favorable picture. 

While CRM stock may be an appealing investment opportunity, it is always prudent to be aware of a stock’s history of drawdown. Salesforce’s stock, CRM, has not been immune to market volatility. It fell roughly 70% during the Global Financial Crisis and nearly 59% during the inflationary shock.

Prognosis: Bleak Recovery

Bullish investors expect the scaling of Agentforce after the release of earnings. Salesforce also increased its full-year 2026 revenue guidance to $41.45 billion – $41.55 billion and reported explosive growth in Agentforce and Data 360 ARR to nearly $1.4 billion, up 114% year on year, driven by over 9,500 paid Agentforce deals and 3.2 trillion tokens processed.

However, without provable improvement of margins and competitive wins, a negative possibility exists.  Investors are recommended to wait and have stronger indications of AI traction before chipping in capital.