Salesforce stock crashed over 25% in 2026 amid fears AI would destroy its customer service business. CEO Marc Benioff says that worry is unfounded.
Record Q1 revenue of $11.1 billion and a 13-fold surge in AI agent usage support his case.
Analysts are upgrading the stock as the panic subsides.
What happened
Salesforce stock fell over 25% in 2026 through Aug. 18, dropping to a multiyear low of $146.32 in June from over $300 per share in 2025, as Wall Street feared AI would automate customer service and erode the CRM market leader's business. CEO Marc Benioff pushed back, calling the concerns "dead wrong."
Why it matters
Salesforce's fiscal Q1 revenue hit a record $11.1 billion (up 13% year over year), and the company raised its full-year forecast to $45.9 billion to $46.2 billion, signaling customers still want its solutions despite the sell-off. Agentforce, Salesforce's AI agent suite launched in 2024, saw usage explode to 1.6 billion times in Q1, up from 14 million two years ago, showing the company is thriving in, not threatened by, the AI era.
What to watch
Salesforce's forward price-to-earnings ratio of about 14 sits near a multiyear low, compared with competitor HubSpot's around 17, suggesting the stock may be oversold. Citigroup raised its price target to $204 on Aug. 18, up from $187, signaling Wall Street is beginning to agree the company's prospects remain strong.
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