New York, Feb 17, 2026, 11:41 (EST) — Regular session.
Salesforce, Inc. shares slipped on Tuesday, leaving the Dow component among the session’s weaker large-cap tech names. The stock was down 2.3% at $185.35, off $4.37 from its last close after hitting an intraday low of $183.19.
The move comes as investors chew on fresh fears that artificial intelligence could upend parts of the software business, squeezing pricing and forcing customers to rethink budgets. Alibaba on Monday unveiled a new model, Qwen 3.5, and Stash Graham, managing director and CIO at Graham Capital Wealth Management, called it “one of the variables weighing on markets today”; software names including Adobe, CrowdStrike and Salesforce were down 2% to 5% earlier in the session. (Reuters)
For Salesforce holders, the timing is awkward. The stock is walking into an earnings window with the sector’s valuation debate back on the front page and little patience for vague “AI” promises.
Broader trade was mixed in late morning, with the SPDR S&P 500 ETF up about 0.2% and the Dow tracker DIA up about 0.3%, while the Nasdaq-leaning QQQ was down 0.1%.
UBS analyst Karl Keirstead lowered his price target on Salesforce to $200 from $260 and kept a Neutral rating. His checks suggest an uptick in Agentforce, Salesforce’s AI agent product, but he warned “core growth is muted,” according to TheFly. (TipRanks)
Oppenheimer analyst Brian Schwartz cut his target to $275 from $300 while maintaining an Outperform rating, citing lower software group multiples. He expects an “uninspiring” quarter and soft growth guidance, but said expectations are already low after a selloff tied to AI disruption fears. (TipRanks)
Mizuho lowered its target to $280 from $340 and kept an Outperform call, saying it reduced price targets across the enterprise software group after “material” multiple compression. The firm said sentiment is “nothing short of horrible” on AI disruption fears, even as its quarterly software checks were solid overall. (TipRanks)
Multiple compression is Wall Street shorthand for investors paying fewer dollars for each dollar of earnings or sales. When that happens, even a small wobble in growth can turn into a big move in the stock.
Macro still matters. The Bureau of Economic Analysis lists the next personal consumption expenditures price index — the Federal Reserve’s preferred inflation gauge — for Feb. 20. (Bureau of Economic Analysis)
But the downside case is plain: if Salesforce disappoints on subscription growth or margins, the new, lower targets could start to look generous. A steadier guide would change the tone fast.
Salesforce said it will release fourth-quarter and full-year fiscal 2026 results after market close on Feb. 25, followed by a conference call at 5 p.m. ET. (Salesforce)
