Salesforce faces prolonged deal closures and cautious client spending, prompting Citi to reduce its price target by $12.
Citi cut its price target on Salesforce (CRM) to $188 from $200, citing weak enterprise software spending trends. The firm noted customers are taking longer to finalize deals and renewing contracts more cautiously.
Salesforce projected FY27 revenue between $45.8 billion and $46.2 billion in February, slightly below Wall Street estimates. The company recently restructured its revenue reporting to highlight AI-driven segments, with $26.70 billion from Agentforce Apps and $12.69 billion from Data 360, Platform, & Other in FY26.
Despite a strategic shift toward AI, investor confidence remains shaky amid broader market concerns over enterprise software demand.