Ever wonder what happens when a tech titan stumbles? Picture this: a company that once soared past its rivals, now grappling with a stock price that’s taken a beating and growth that’s barely keeping pace. That’s the story of Salesforce in 2025, a company facing a pivotal moment as investors eagerly await signs of a turnaround. With artificial intelligence reshaping the tech landscape and competitors like Oracle riding the wave, Salesforce’s next moves could define its future.
Salesforce’s Rocky Road and the Quest for Growth
It’s been a rough year for Salesforce. The company, once a darling of the tech world, has seen its stock plummet by 25% in 2025, making it one of the weakest performers among large-cap tech firms. Only UnitedHealth has fared worse in the Dow. Meanwhile, Oracle, a long-time rival, has surged 34%, capitalizing on the AI boom and leaving Salesforce in the dust. The gap between the two companies, once neck-and-neck in market value, now stands at a staggering $400 billion.
What’s gone wrong? For starters, Salesforce’s growth has been stuck in the single digits for over a year. Analysts predict revenue growth of just 8.7% for the latest quarter, a far cry from the double-digit spikes investors crave. The company’s core business, customer relationship management (CRM) software, is facing market saturation, and the rise of AI is shaking things up in ways that could either save or sink Salesforce’s prospects.
The AI Challenge: Threat or Opportunity?
Artificial intelligence is no longer a buzzword—it’s a game-changer. For Salesforce, AI poses both a risk and a golden opportunity. The company’s flagship product, Service Cloud, generates a significant chunk of its revenue by charging for each agent who uses the software. But here’s the kicker: AI is automating customer service tasks at an unprecedented rate. Some estimates suggest 30% to 50% of Salesforce’s workloads are already handled by AI, which could shrink demand for human agents.
AI is turning the software industry into a dangerous place for companies that don’t adapt quickly.
– Portfolio manager
Salesforce isn’t sitting idle. Enter Agentforce, the company’s AI-powered system designed to handle customer support inquiries autonomously. Launched in October 2024, Agentforce is already generating $100 million in annualized revenue—not bad, but not enough to move the needle for a company of Salesforce’s size. The hope? Customers will shell out more for Agentforce than they do for Service Cloud, boosting revenue and proving AI can be a growth driver rather than a disruptor.
But here’s where I get a bit skeptical. While Agentforce sounds promising, it’s still in its early days. Can it scale fast enough to offset the potential decline in Service Cloud revenue? That’s the million-dollar question—or rather, the $239 billion question, given Salesforce’s current market cap.
Investors Demand More: The Growth Imperative
Investors are restless. After four quarters of sub-10% revenue growth, they’re looking for signs that Salesforce can return to its high-flying days. One key metric they’re watching is current remaining performance obligations (CRPO), which measures expected revenue over the next year. In May, Salesforce’s operating chief projected CRPO growth of 9% for the August quarter. Anything above 10% would signal confidence that Salesforce can sustain stronger growth moving forward.
- CRPO growth: A key indicator of future revenue health.
- Double-digit target: Investors want to see growth hit 10% or higher.
- AI adoption: Agentforce’s success could drive long-term gains.
Analysts are cautiously optimistic, forecasting a slight uptick to 9% revenue growth in the fiscal third quarter. But for a company that once outpaced its peers, “slight” isn’t cutting it. Investors want bold moves, and they’re hoping Salesforce’s leadership, led by CEO Marc Benioff, has a plan to deliver.
Acquisitions and Activism: A Path to Recovery?
Salesforce has a history of using acquisitions to fuel growth, and 2025 is no exception. The company’s recent $8 billion deal to acquire data management firm Informatica is its biggest since the $27.1 billion purchase of Slack in 2021. The move signals Salesforce’s intent to expand its offerings and tap into new revenue streams. But acquisitions alone won’t solve the problem—especially when activist investors are circling.
In late 2022, activist investors, including Starboard Value, began pushing Salesforce to tighten its belt and focus on profitability. The pressure worked: Salesforce improved its margins faster than planned. Now, Starboard is back, increasing its stake by 47% in Q2 2025. Their message? Profitability is great, but there’s still “a lot more to go” in terms of optimizing Salesforce’s business model.
Salesforce has made strides in profitability, but the real challenge is reigniting growth without sacrificing margins.
– Activist investor
I’ve always found activist investors to be a double-edged sword. On one hand, they can push companies to make tough but necessary changes. On the other, their short-term focus can sometimes stifle long-term innovation. For Salesforce, the challenge is balancing these demands while staying competitive in a rapidly evolving tech landscape.
Oracle’s Shadow: A Tale of Two Tech Giants
It’s hard to talk about Salesforce without mentioning Oracle. Once peers in market value, the two companies have taken wildly different paths. Oracle has capitalized on the AI boom, securing major cloud infrastructure deals with players like OpenAI and xAI. Its stock has soared, and its market cap now dwarfs Salesforce’s by a wide margin.
| Company | Market Cap | Stock Performance (2025) |
| Salesforce | $239 billion | -25% |
| Oracle | $630 billion | +34% |
Oracle’s success highlights what Salesforce is up against. While Oracle has found a sweet spot in the AI-driven cloud infrastructure market, Salesforce is still figuring out how to leverage AI in its CRM-focused business. The contrast is stark, and it’s no wonder investors are frustrated.
But here’s where things get interesting. Salesforce isn’t Oracle, and it doesn’t need to be. Its strength lies in its cloud-native approach, which revolutionized CRM when it launched. The question is whether it can reinvent itself again, using AI and strategic acquisitions to carve out a new niche in a crowded market.
What’s Next for Salesforce?
As Salesforce prepares to report its quarterly results, all eyes are on Benioff and his team. Investors want concrete signs that the company can return to double-digit growth and capitalize on the AI revolution. Here are a few things to watch for:
- Agentforce traction: Is the AI system gaining enough customers to offset potential Service Cloud declines?
- CRPO growth: Can Salesforce hit or exceed the 10% threshold investors are hoping for?
- Acquisition impact: Will the Informatica deal start delivering meaningful revenue?
- Profitability balance: Can Salesforce maintain its margin gains while investing in growth?
Some investors remain optimistic. Vulcan Value Partners, a long-time Salesforce shareholder, increased its stake by 345,000 shares in Q2 2025, bringing its total holdings to $300 million. Their confidence stems from Salesforce’s ability to grow its value per share, even in tough times.
The value per share of Salesforce continues to grow. This company isn’t going anywhere anytime soon.
– Portfolio manager
Perhaps the most intriguing aspect of Salesforce’s story is its resilience. Despite the challenges, the company has a track record of adapting to market shifts. Whether it’s through AI innovation, smart acquisitions, or responding to investor pressure, Salesforce has the tools to stage a comeback. But it won’t be easy.
The Bigger Picture: Lessons for Investors
Salesforce’s struggles offer a broader lesson for investors: even the mightiest tech companies can hit rough patches. The tech industry moves fast, and staying ahead requires constant innovation. For Salesforce, the path forward hinges on its ability to embrace AI, expand its offerings, and deliver the growth investors expect.
In my experience, companies that successfully navigate these challenges often emerge stronger. Salesforce’s leadership has shown it can adapt before—think of its pivot to cloud-native CRM decades ago. The question now is whether it can pull off a similar feat in the age of AI.
Final Thoughts: A Make-or-Break Moment
Salesforce is at a crossroads. With its stock lagging, growth slowing, and competitors like Oracle thriving, the pressure is on. Yet, there’s reason to believe a turnaround is possible. Agentforce could be a game-changer, acquisitions like Informatica could open new doors, and Salesforce’s track record suggests it’s not down for the count.
As an investor, I’d be watching closely for signs of progress in the upcoming earnings report. Can Salesforce prove it’s still a leader in the tech world? Only time will tell, but one thing’s for sure: the stakes couldn’t be higher.
Salesforce’s Turnaround Formula: 40% AI Innovation 30% Strategic Acquisitions 30% Investor Confidence
So, what do you think? Is Salesforce poised for a comeback, or are its best days behind it? The tech world is watching, and the next few quarters could tell the tale.
