Salesforce stock falls to three-year lows as AI competition intensifies

Salesforce (NASDAQ: CRM) has had a difficult 2026, with its total 12-month performance down 33.03% and its year-to-date (YTD) decline reaching 32.64%.

The stock’s most recent closing price was $170.85, the lowest level the equity has been in more than three years. The shares previously moved in a $160 to $186 range between February and March 2023, and an extended-session rally to $171.15 has not materially improved the overall trend.

Why Salesforce stock is falling in 2026

The article points to intensifying competition across the software industry in 2026, driven by the rise of artificial intelligence (AI) agents. It notes that legal services stocks fell sharply in early February after a tailored AI plugin was released, and that the pattern has continued and broadened since then.

As these developments spread, some investors have begun to question whether traditional software companies could become obsolete, arguing that automated and autonomous systems may offer a more cost-effective alternative.

Development: AI tools, competition, and investor expectations

The piece highlights Anthropic’s Mythos tool as a recent example of the pace of AI development, alongside growing attention on Claude’s capabilities and an increasing number of “copycats.”

It also cites a more optimistic view from parts of Wall Street. Wedbush’s Dan Ives is mentioned as believing that the risks may be overstated, and that while Salesforce may need to adjust its business model, its transformation is already underway—reducing the likelihood of long-term damage.

Data and signals from customers

The article adds that the U.S. government—described as a long-standing Salesforce customer—has provided indications that the company remains relevant. It states that, despite multiple Washington agencies deepening AI integration, the Department of Defense entered into a $4.7 billion agreement in January.

Impact and what could determine the next phase

Despite these signals, the article says Salesforce remains in a difficult position. It warns that if the company does not adapt to AI’s advancement and proliferation—while the technology meets bullish expectations from Wall Street and executives—Salesforce could face a rapid decline in relevance and revenue.

It also notes a second risk scenario: if concerns that AI has become a dangerous and unsustainable bubble are realized—citing delays in infrastructure buildouts as at least temporary support—Salesforce could be exposed to fallout tied to the scale of investments made in the technology and the size of major participants in the AI boom.