New York, February 23, 2026, 11:49 EST — Regular session
- Salesforce shares slide in late-morning action, dragging the Dow lower.
- Tariffs are back on the radar, and software names are feeling the pressure as investors wait for key earnings.
- Salesforce’s Feb. 25 report is drawing investor attention as they seek new signals on demand and updates around AI tools.
Salesforce dropped roughly 5.6% to $174.70 late in the morning, just off its session low of $174.64. The stock ranked as one of the top laggards pulling down the Dow Jones Industrial Average.
U.S. stocks fell after President Donald Trump unveiled a fresh 15% global tariff, stirring up worries as the Supreme Court gutted most of his earlier tariffs. “You simply can’t bet against Trump. He wants tariffs, and he’s going to find a way to implement them,” said Thomas Hayes, chairman at Great Hill Capital LLC. The S&P 500 software and services index lost roughly 2.9%, extending a slide that’s now nearly 23% this year. Investors are eyeing upcoming results from Salesforce and Intuit, with concerns swirling that new AI technology could pressure demand for subscription-based software. Reuters
Morgan Stanley’s Keith Weiss has trimmed his Salesforce price target down to $287, from the previous $398, while sticking to his Overweight call—a designation signaling anticipated outperformance against competitors. In a preview note, Weiss said the company’s mostly in-line results and fiscal 2027 outlook probably won’t shift sentiment in any meaningful way.
It’s been a jittery stretch for big software stocks, with investors still wrestling to translate “AI disruption” into hard numbers. The question boils down to this: are customers going to cut seat counts, demand steeper discounts, or simply migrate spend to lower-cost products.
Credit markets are feeling the heat, too. Several software firms have paused debt issuance as lenders demand steeper yields and more restrictive covenants, sources in the industry say. “We expect AI disruption risk to be increasingly reflected over 2026 to early 2027,” said Matthew Mish, UBS’ head of credit strategy. PineBridge Investments portfolio manager Jeremy Burton added, “I don’t really see software and business services as being hot sectors for issuance over the next year.” Reuters
Salesforce plans to post its fourth-quarter and full-year fiscal 2026 financials after markets close on Wednesday, Feb. 25, with a conference call set for 5 p.m. ET, according to the company.
The outlook is what investors want to hear—less focus on the past quarter. What matters: demand signals. Are there new big deals coming through, renewals, actual expansion of contracts, or is it just budget reshuffling by customers?
Investors will be watching to see if Salesforce’s AI “agent” tools are actually gaining paying customers — and whether those extras are driving new spending, or just swapping out what buyers already pay for. The math on long-term growth looks very different depending on which of those scenarios plays out.
Tariffs throw another factor into the mix. When steeper duties start weighing on business confidence, companies might tap the brakes on new projects, drag out procurement, and push suppliers harder when contracts come up for renewal.
Even so, things could turn quickly. If guidance steadies, the rout might ease; but if management sounds wary, or if it’s clear AI tools aren’t bringing in fresh revenue, sellers probably won’t let up.
Salesforce reports earnings after the bell on Feb. 25. Management’s guidance then is expected to drive the stock’s direction into the next session and further out.
