The cloud software giant Salesforce finds itself in a complex position, balancing internal reorganization against a backdrop of conflicting analyst sentiment. While the broader software sector faces significant pressure in 2026, several major financial institutions are expressing renewed confidence in the company. This comes as Salesforce undertakes a noticeable internal transformation, involving workforce reductions and management changes, raising the question of whether its AI initiatives can outpace current market anxieties.
Internal Restructuring: A Shift Towards AI
Amidst the external market commentary, Salesforce is executing a substantial internal realignment. According to Simply Wall St, the company is eliminating nearly 1,000 positions across various departments, including within some AI-focused teams. This operational shift is accompanied by significant leadership changes, with five executives being replaced and six new managers appointed.
This restructuring is intrinsically linked to a sharper strategic focus on artificial intelligence. Central to this pivot is the Agentforce platform, which is slated to play a pivotal role in future product and growth strategies. The company reports that the AI-related annual recurring revenue (ARR) stemming from Agentforce and Data Cloud has now reached approximately $1.4 billion.
The next significant milestone for investors will arrive on February 25, with the release of fourth-quarter and full fiscal year 2026 results. These figures are expected to provide clearer insight into how the company’s AI investments and restructuring efforts are impacting its official financial metrics.
Wedbush Reinstates Salesforce to Key List
In a notable vote of confidence, Wedbush Securities has returned Salesforce to its prominent IVES AI 30 list this week. This reinstatement comes after the firm removed the stock in December 2025. Analysts, led by Dan Ives, have characterized the recent sell-off in software equities as “significantly overdone,” identifying Salesforce as a “core participant” in the ongoing AI evolution.
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To accommodate Salesforce’s return, Roblox and Baidu were removed from the list; ServiceNow was also added. Wedbush’s rationale centers on the belief that the market is currently pricing in an extreme “doomsday” scenario for software companies—a perspective the analysts consider clearly exaggerated.
The firm highlights Salesforce’s entrenched position with enterprise clients. The company possesses an install base of over 150,000 customers, which includes more than 90% of Fortune 500 companies. Wedbush notes that these clients have built years of processes and data within the Salesforce ecosystem, creating substantial switching costs and a durable revenue moat.
Morgan Stanley Identifies Potential for Rebound
Echoing the theme of potential market overreaction, Morgan Stanley has described recent price movements as broad and largely undifferentiated, with little distinction made between business models or fundamental strengths. In an analysis published yesterday, the bank named Salesforce as one of five software stocks that could see pronounced benefits if concerns related to AI investment cycles begin to subside.
As a barometer for the sector, Morgan Stanley cited the iShares Expanded Tech-Software Sector ETF, which has shed more than one-fifth of its value since the start of the year. Salesforce is listed among the major holdings that have contributed to this decline.
Key Data Points:
* Earnings Date: February 25
* Customer Base: Over 150,000
* Fortune 500 Penetration: Over 90%
* AI-related ARR (Agentforce & Data Cloud): Approximately $1.4 billion USD
* Workforce Reduction: Close to 1,000 positions
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