Wall Street analysts for the most part don’t see Salesforce stock paying off soon after the cloud company issued disappointing revenue guidance for its current quarter. Investors sent Salesforce stock lower after the company told investors to probably expect third-quarter revenue below what analysts had estimated. Salesforce predicted sales in the current quarter of between $10.24 billion and $10.29 billion, while consensus estimates had called for revenue of $10.29 billion, according to LSEG. In the second quarter just ended, Salesforce results beat expectations on both the top and bottom lines, posting earnings of $2.91 per share on revenue of $10.24 billion, while analysts polled by LSEG had expected earnings of $2.78 on $10.14 billion in revenue. Shares of Salesforce were down almost 8% lower in early trading Thursday, one of the Dow Jones Industrial Average’s worst performers. The stock has tumbled 29% this year. CRM YTD mountain CRM YTD chart Despite the latest guidance, Wall Street remains decidedly bullish. LSEG data shows that 41 analysts covering Salesforce rate it as a strong buy or buy, while 11 give it a hold and only one rates it a sell. Analyst reactions ranged from neutral to encouraged by a potential turning point in Salesforce’s fortunes, driven by opportunities in artificial intelligence. Here’s what analysts at some of Wall Street’s biggest banks are saying following Salesforce’s latest earnings report, from most bearish to most optimistic. Bernstein: Underperform rating, $221 price target The bank’s price target implies the risk of 14% downside ahead, based on Salesforce’s Wednesday closing price of $256.45 per share. “We have been concerned that Salesforce is a mature business in a mature market and that expectations were running too high in general and especially as it relates to Agentforce. Plus, the possibility of large / expensive M & A remains a concern for us … However, we disagree with the broader concern that Gen-AI would destroy SaaS business model. We believe that platform vendors like Salesforce are positioned to deliver AI functionalities and monetize them. That said, size and timing remains uncertain.” UBS: Neutral, $260 The UBS price target implies shares will add just 1% in the coming year. “For the second quarter in a row, Salesforce reaffirmed (didn’t raise) the FY26 total revs growth outlook of 8% despite the strong growth in the AI/Data segment (3% of revs) and positive commentary about the 2H pipeline and bookings momentum. This in our view speaks to a quite mature CRM software market and a reality that “front-office AI” investments are simply very early-stage. We’re content staying patient on the stock (we’re Neutral-rated) until we can more clearly see a path back to 10%+ growth.” Wells Fargo: Equal weight, $265 Analyst Michael Turrin’s target would translate into a gain of 3%. “Lack of a FY raise on a decent 2Q suggests less upside ROY than prev expected. Remain balanced until greater signs of a catalyst emerge, w/ Agentforce uptake proving slower than anticipated (ARR disclosure not given).” Citigroup: Neutral, $275 Citi’s new $275 price target, down from $295, corresponds to 7% upside. “We remain more cautious on CRM with partner feedback in F2Q suggesting an underwhelming demand picture: top-of-funnel activity is progressively weakening but there are still instances of ACV growth. Agentforce interest persists, though large-scale rollouts are rare, consistent with intra-Q takeaways at the Agentforce Boston event. We await more data points around wider rollouts and commercialization before turning constructive. We expect revenue growth to remain constrained in the HSD near-term, with limited Q2 upside. We believe price increases were likely already embedded in guidance. We remain Neutral-rated, though our PT lowers to $275 (from $295) implying ~17x FY27 FCF with limited estimate changes and a slightly higher valuation discount for increased competition.” Barclays: Overweight, $316 The bank’s projection of where the stock should trade in a year represents 23% upside. “We are not sure Q2 will be a major catalyst for CRM. The quarter itself was slightly better, but the guidance was slightly weaker despite more positive macro comments (especially in SMB). Agentforce seems to be seeing more adoption but numbers remain small and hence, investors need to be patient.” Bank of America: Buy, $325 Bank of America’s price objective is 27% above Salesforce’s Wednesday closing price. “The outlook for Q3 cRPO growth of 10% suggests that low double digit growth is intact, with potential for a reacceleration in FY27 from added AI contribution. We are encouraged by a raised outlook for FY26 FCF growth 3% points to 12% to 13%. This backs our view that Salesforce is on track to deliver sustained mid teens FCF growth, before material contribution from Agentforce. With added traction, we see potential for a reset to solid high teens FCF growth.” Deutsche Bank: Buy, $340 Analyst Brad Zelnick sees shares rising 33% from here. “Salesforce reported F2Q results that were generally in line with muted investor expectations. Solid underlying trends continued, with headline metrics (cRPO, revenue, margins) modestly ahead of consensus … While continued strength in Data Cloud/AI was evident once again with stable 120% y/y growth, we believe the seemingly intensive implementation process is limiting near-term contribution. While more meaningful monetization remains on the horizon, we were encouraged to see paid closed deals accelerate (with 2K new paid in the quarter vs 1K in F1Q), aligning with management’s focus on optimizing for usage.” JPMorgan: Overweight, $365 JPMorgan’s price target is roughly 42% above where shares of Salesforce closed on Wednesday. “Salesforce continues to emphasize the momentum it is seeing across its AI solutions while simultaneously hinting at improving pipeline and bookings trends as well as offering constructive commentary on growth potential over the intermediate term — comments that, in our view, are somehow falling on deaf ears due to overdone concerns relating to the potential impact of AI on seat-based SaaS models. While we understand that growth has not inflected yet and investors are thus not seeing an imminent need to revise their thought process, our view is that Q2 results and positive company commentary are sufficient at this juncture, considering CRM shares are trading near a historically low valuation level and deep discount to software peers.” Goldman Sachs: Buy, $385 The bank’s 12-month price forecast implies upside of 50%. “Contrary to prevailing investor concerns, we don’t believe AI will disrupt Salesforce’s SaaS business but instead become a multi-year tailwind … While results on the surface appeared modestly ahead across most important metrics, the weakness in the stock can be tied to a lack of meaningful reacceleration implied in F2H26 guidance. That said, we remain constructive.” Morgan Stanley: Overweight, $405 Morgan Stanley’s price target is approximately 72% above where shares of Salesforce are trading Thursday. “While Q2 results fell largely inline with expectations, the pieces are coming together for an improving growth trajectory – building traction in Agentforce/Data Cloud, ramping sales capacity and accelerating pipeline growth. At 16X EV/CY26 FCF, we would be building positions ahead of this turn.”
