Salesforce’s stock falls as mixed earnings forecast fails to dispel AI gloom

MarketWatch

by Christine Ji

February 25, 2026

AI-Generated Deep Dive Summary

Salesforce's stock dropped despite announcing a $50 billion share buyback and a new AI metric aimed at addressing concerns about artificial intelligence (AI) disruption. While these moves are significant, investor sentiment remains cautious due to ongoing worries about the potential threats AI poses to the company's business model. The share buyback program is designed to return value to shareholders by purchasing its own shares, which typically boosts earnings per share and can increase stock prices over time. However, this strategy often focuses on short-term gains rather than addressing long-term challenges like AI disruption. Salesforce also introduced a new metric to measure the adoption of AI across its products, reflecting its commitment to integrating AI into its operations. Despite these initiatives, investors remain focused on the broader risks associated with AI, particularly competition from major tech companies like Microsoft and OpenAI. The market's skepticism underscores the uncertainty surrounding AI's impact on Salesforce's future performance and revenue growth. For readers interested in finance, this situation highlights the importance of understanding how emerging technologies can influence market dynamics and investor sentiment. Salesforce's experience demonstrates that even substantial financial strategies and technological advancements may not be enough to alleviate concerns about AI disruption, emphasizing the need for companies to adapt quickly to evolving market conditions.

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Originally published on MarketWatch on 2/25/2026