Is Salesforce Stock Ready for a Comeback in 2025?

Core Viewpoint - Salesforce's stock has declined approximately 26% year-to-date, underperforming compared to the broader market and many tech peers benefiting from the AI boom, but recent announcements at the Dreamforce conference have sparked some market optimism [1][2] Group 1: Financial Performance - Salesforce reported Q2 fiscal 2026 revenue of $10.24 billion, reflecting a 10% increase year-over-year and slightly exceeding Wall Street expectations [4] - Earnings per share (EPS) also surpassed forecasts, although guidance for the third quarter fell short of expectations, indicating slower momentum [4] Group 2: Growth Potential - Management highlighted the growth potential of its Data Cloud and AI-driven products, seeing significant opportunities to enhance annual recurring revenue (ARR) as these technologies gain traction [2] - Salesforce projects revenue exceeding $60 billion by 2030, which is ahead of Wall Street's expectations, with an anticipated organic annual growth rate of over 10% from fiscal 2026 to 2030 [6] Group 3: Market Sentiment and Challenges - Despite heavy investments in AI, Salesforce has not yet achieved the explosive growth anticipated by investors, particularly with its Agentforce platform, which has had slower traction than expected [3] - There are concerns among investors that AI could disrupt the broader software industry in ways that may not favor Salesforce, contributing to its stock underperformance [5]