Salesforce stock cheapest since 2004.

Salesforce Inc. is trading at its cheapest level since going public, yet buyers remain scarce as concerns about artificial intelligence cloud its growth outlook.

The company reports earnings after Tuesday’s close. It has projected a return to double-digit revenue gains in the years ahead. Analysts, however, doubt the update will shift the prevailing caution around the stock.

Hilary Frisch, senior research analyst at ClearBridge Investments, said investors need clearer signs of stability and stronger topline expansion before sentiment can improve.

Salesforce shares have fallen 30% in 2025, ranking among the weakest in both the Dow Jones Industrial Average and the S&P 500 Index. By contrast, software firms viewed as AI beneficiaries, including Microsoft, Oracle and Palantir, have advanced.

The decline has pushed Salesforce’s valuation to its lowest point on record. The stock trades below 19 times projected earnings for the next year, well under its 10-year average of 47 and also below the broader S&P 500’s multiple of about 22.

Frisch said the current valuation could be appealing if the company delivers on its forecast, though she questioned whether the upcoming report would ease concerns about AI-driven disruption.

Salesforce’s outlook alleviated fears of an immediate slowdown but did not settle doubts about competition from AI-native companies such as OpenAI. Analysts worry such rivals could pressure demand and pricing.

The firm offers AI products of its own, including Agentforce, which automates certain tasks. Wall Street expects limited financial impact for now, and consensus estimates for next year’s earnings and revenue have stayed unchanged for 12 months. Citi analyst Tyler Radke wrote that broader rollouts and clearer commercialization are still needed.

SaaS companies more broadly have struggled in 2025. A Morgan Stanley index tracking the group is down 12% on fears of AI disruption.

Actual financial results have not reflected such damage. Salesforce is on track for 11% net income growth this fiscal year and an 8.8% increase in revenue, with faster gains projected through fiscal 2029.

Some analysts see the sector as oversold. KeyBanc Capital Markets said SaaS valuations imply an unrealistic collapse in growth. The average price target for Salesforce stands near $325, about 40% above its current $235 level.

Brad Conger of Hirtle Callaghan said Salesforce remains a mission-critical platform for many companies, though the broader AI impact will take time to clarify.