Salesforce shares have fallen 17.2% over the past 12 months, underperforming the Zacks Computer and Technology sector's 31.7% gain, as investors question the outlook for the software industry. Adobe, SAP, and Oracle have also declined 20.5%, 28.2%, and 41.8% respectively, reflecting concerns that agentic AI could reduce demand for traditional software-as-a-service models. Despite these headwinds, Salesforce reported first-quarter fiscal 2027 revenue growth of 13.3% year over year and expects double-digit growth for the second quarter and full year. The company's Agentforce annual recurring revenue jumped 205% to $1.2 billion, while combined AI and Data ARR reached $3.4 billion, more than tripling from the prior year. With the stock now trading at a forward price-to-earnings ratio of 12.99, well below the sector average of 21.65, Zacks Investment Research maintains a Hold rating on Salesforce, advising existing investors to hold and new investors to wait for clearer evidence of durable AI-driven gains.
