247Wallst·2026-02-19 17:25Group 1: Company Performance - Salesforce (CRM) shares fell 29.1% year-to-date, underperforming the Dow by 32.5 percentage points, despite reporting Q3 fiscal 2026 revenue of $10.26 billion and raising full-year guidance to $41.45 billion to $41.55 billion [1][2] - Microsoft (MSFT) experienced a 17.4% decline in stock price, lagging the Dow by 20.8 percentage points, even after reporting Q2 revenue of $81.3 billion, a 17% year-over-year increase, and Azure growth of 39% [1][2] - UnitedHealth (UNH) saw a 12.7% drop in stock value, trailing the Dow by 16.1 percentage points, with Q4 2025 revenue of $113.22 billion missing estimates and operating income plummeting 95% to $380 million [1][2] Group 2: Market Sentiment and Trends - The divergence in performance between these companies and the Dow reflects a broader market sentiment where fundamentals alone do not drive returns, as investors reassess structural assumptions regarding AI, healthcare regulations, and capital expenditures [2] - Concerns over AI's impact on traditional software demand have led to a sell-off in software stocks, with Salesforce's valuation being questioned despite a projected 14.7% growth in business software spending in 2026 [1][2] - Microsoft's significant capital expenditures of $29.9 billion in Q2, up 89% year-over-year, raised investor concerns about whether this would translate into expected growth rates, contributing to stock price declines [1][2] Group 3: Financial Metrics - Salesforce's revenue grew 8.6% year-over-year, but shares dropped from $264.91 to $187.79 between December 31, 2025, and February 18, 2026 [1] - Microsoft reported a free cash flow decline of 9.3% despite strong operating cash flow growth, indicating potential challenges in maintaining profitability amid high capital expenditures [1] - UnitedHealth's net income fell to $10 million, down 99.8% year-over-year, highlighting the fragility of its Medicare Advantage model amid regulatory pressures and increased medical costs [1][2]