---
title: "Salesforce (CRM) Was Meant to Be an AI Casualty. The Results Say Otherwise"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286879140.md"
description: "Salesforce, Inc. (CRM) was expected to struggle due to AI disruption in enterprise software, but recent results indicate growth and traction in AI products. Despite market skepticism, the company's valuation may not reflect its potential for earnings growth. The bearish outlook on Salesforce stems from fears of reduced switching costs and subscription revenue pressure, but the author believes these concerns may be overblown, suggesting the stock is undervalued."
datetime: "2026-05-19T08:20:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286879140.md)
  - [en](https://longbridge.com/en/news/286879140.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286879140.md)
---

# Salesforce (CRM) Was Meant to Be an AI Casualty. The Results Say Otherwise

Salesforce, Inc. (CRM) was widely expected to be among the main victims of the disruption caused by artificial intelligence (AI) in enterprise software. The concern is understandable. The rapid emergence of AI-native alternatives could reduce switching costs and weaken the traditional recurring revenue model used by software-as-a-service (SaaS) companies. However, when I look at Salesforce's most recent results and forward guidance, I do not see a company in structural decline.

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On the contrary, the customer-relationship-management giant continues to grow, and its AI products are gaining traction quickly. At the same time, the current valuation already appears to reflect a very high degree of skepticism, especially given the potential for earnings growth to reaccelerate over the next several fiscal years.

That is why I continue to view the bullish thesis on Salesforce as valid today. If fears surrounding AI prove to be overblown, I believe the stock is meaningfully undervalued. In this article, I present the main arguments supporting that view.

## **Punished More by AI Fears than by Business Fundamentals**

It seems quite clear to me that the market has placed Salesforce in the same "basket" as enterprise SaaS companies perceived to be at immediate risk of disruption from AI. The bearish thesis that has pressured Salesforce shares is that AI coding, agentic AI, and more AI-native tools could reduce switching costs, which have long been one of the company's biggest competitive advantages. Over time, that could lead to lower seat counts and put pressure on Salesforce's highly predictable subscription revenue model.

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