The numbers coming out of Salesforce look like a textbook growth story — until you glance at the chart. The software giant’s artificial intelligence products are surging, its latest quarterly results beat expectations, and a blue-chip healthcare partner just signed on to deploy its next-generation AI platform. But the stock has racked up a 33% loss since January, hovering just a few euros above its 52-week low. The market is sending a clear message: strong AI adoption alone no longer cuts it.
The disconnect was on full display Thursday, when Salesforce shares closed at €143.88 — nearly 11% lower for the week — even as the S&P 500 eked out a modest gain. The slide followed a broader sector sell-off triggered by Oracle’s earnings, which showed ballooning AI infrastructure debt that spooked investors across the technology space. Salesforce lost 2.5% on June 11 alone, dragged down by the mood swing despite delivering no negative news of its own.
What the market seems to be demanding is proof that AI investments are translating into sustainable margins and cash flow. And on that front, Salesforce’s latest numbers are a mixed bag.
Agentforce Momentum Hits a High Note with CVS
The company’s AI push is gaining serious traction. Agentforce, its flagship autonomous agent platform, has reached an annualized recurring revenue (ARR) of $1.2 billion — a 205% jump from a year earlier. When combined with Data Cloud, the AI-related ARR totals roughly $3.4 billion, more than triple the prior-year figure. Salesforce has also logged 3.8 billion Agentic Work Units processed through Agentforce and its Slack integration, underscoring the platform’s growing usage.
The biggest proof point so far came from the healthcare sector. Salesforce expanded its partnership with CVS Health, the U.S. pharmacy and healthcare conglomerate, to run its call centers using Agentforce. Industry watchers describe it as the largest AI deal Salesforce has closed in a heavily regulated vertical — a test case that could open the door to other data-intensive industries.
Should investors sell immediately? Or is it worth buying Salesforce?
To capture more of that usage-based value, Salesforce is overhauling its licensing model. The company recently acquired m3ter, a London-based billing platform, to shift away from traditional per-seat software fees. Customers will instead pay for each AI agent interaction, a structure CEO Marc Benioff argues will drive far greater efficiency. The move is designed to embed metered pricing directly into the Agentforce revenue engine.
Revenue and Earnings Beat — But Cash Flow Worries Persist
In the fiscal first quarter ended April 30, 2026 (FY2027 for Salesforce), total revenue came in at $11.1 billion, up 13% year over year. GAAP earnings per share surged 52% to $2.42, while adjusted EPS rose roughly 50%, easily topping analyst estimates. For the full year, management guided revenue between $45.9 billion and $46.2 billion, representing growth of about 11%. The second-quarter outlook calls for $11.27 billion to $11.35 billion.
So why isn’t the market cheering? The weak link is cash flow. Salesforce expects both operating and free cash flow to grow just 4% to 5% in 2027. That anemic rate reflects a $25 billion bond issuance used to fund an accelerated share buyback program — a move that returns capital to shareholders but inflates debt and depresses cash-flow metrics. In the first quarter alone, $27.5 billion flowed back to investors, nearly all through repurchases. At a time when Wall Street is scrutinizing balance sheets more closely, the leverage is giving some analysts pause.
Technical Picture Remains Fragile
At current levels around €143.98, the stock sits less than 3% above its 52-week trough of €139.90. The 200-day moving average of €186.96 is far overhead, and the relative strength index of 39.7 indicates mere stabilization, not a recovery. The dividend of $0.44 per quarter, payable on July 2, 2026 to holders as of the ex-date, offers token income but does little to counteract the broader malaise.
Support at the April low near €139.90 is now the critical line in the sand. A break below that level would open the door to further downside, even as the underlying business racks up record AI revenue. For Salesforce, the story has become a test of patience: strong operational momentum is not enough until the numbers also show up in the free cash flow line.
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