Salesforce Stock Is Near a 3-Year Low. Is Now the Time to Buy?

By David Jagielski, CPA – Mar 3, 2026 at 12:00PM ESTKey PointsSalesforce stock has been in a free fall this year, even though it recently posted strong earnings numbers.Its guidance for the current year indicates that its growth rate is expected to slow down.The stock has declined to a more modest valuation, which is more in line with the S&P 500 average.Software stocks have been falling recently as investors worry about their futures due to the growing popularity of artificial intelligence (AI) and what it can do for businesses. One stock that's been performing particularly poorly is Salesforce (CRM +2.44%), which has ironically been positioning itself as a stock that should benefit from AI. Salesforce stock has fallen 27% this year and is now near a three-year low. Could this be a great buying opportunity for growth investors, or are you better off steering clear of this troubled stock? Image source: Getty Images. Strong quarterly numbers were not enough to give the stock a big boost On Feb. 25, Salesforce reported its fourth-quarter earnings. For the three-month period ending Jan. 31, the company's revenue totaled $11.2 billion and rose by 12% year over year, slightly beating analyst expectations of $11.18 billion. Its adjusted per-share profit of $3.81 was also far above the $3.04 in per-share profit that Wall Street was expecting. For the new fiscal year, which ends in January, Salesforce projects that its top line will rise by around 10% to 11%. It's a decent growth rate, but it may not be all that impressive for a company that has been routinely pumping up its opportunities related to AI and its Agentforce platform. While the stock did rise on the strong quarterly performance, it wasn't significant, especially given the decline that it's been on this year. ExpandNYSE: CRMSalesforceToday's Change(2.44%) $4.70Current Price$197.65Key Data PointsMarket Cap$181BDay's Range$189.69 - $198.5252wk Range$174.57 - $298.08Volume390KAvg Vol11MGross Margin75.28%Dividend Yield0.86% Larger questions loom over Salesforce stock The lack of excitement around Salesforce's stock despite the tech company posting strong numbers points to a broader concern around the business, and that's whether its software will add enough value for customers to be in high demand. AI can help companies conduct sales and marketing analysis more efficiently, and lessen the need for Salesforce's pricey software. And AI can enable companies to offer similar types of services, making the field more competitive. Although software stocks have been under the microscope this year, the question marks and concerns around Salesforce are not new; the stock is down 35% over the past 12 months. And even with the decline in value, it's still trading at around 26 times its trailing earnings (the S&P 500 average is a little under 25), offering a glimpse into just how overpriced it was in the past. Salesforce isn't a cheap stock despite the sell-off this year, and with a slowing growth rate and plenty of uncertainty due to AI, I'd steer clear of it. While it may seem cheap, I wouldn't be surprised if it were to continue to fall in the weeks and months ahead.Read NextMar 2, 2026 •By Geoffrey SeilerIs It Time to Buy Beaten-Down Salesforce?Feb 26, 2026 •By Daniel SparksIs Salesforce Stock a Buy After a Strong Earnings Report?Feb 26, 2026 •By Leo SunSalesforce Is Buying Back $50 Billion of Its Own Stock.

Should You Be Buying Too?Feb 24, 2026 •By James HiresThe AI Stock That Insiders Are Loading Up On for 2026Feb 24, 2026 •By Jeremy BowmanWhy Salesforce Stock Was Climbing TodayFeb 23, 2026 •By Daniel SparksWhy I'm Still Not Buying Salesforce StockAbout the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedSalesforceNYSE: CRM$197.83(+2.53%)+$4.88*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.