April 23, 2026
Shares of CRM software giant Salesforce (NYSE:CRM) fell 8.5% in the afternoon session after weak guidance from peer company ServiceNow sparked a broad sell-off across the software sector.
The drop was not caused by any news from Salesforce itself but was a reaction to ServiceNow’s first-quarter report. While ServiceNow’s revenue was slightly better than expected, its management warned that a recent acquisition would hurt its 2026 margins and free cash flow. This warning rattled investor confidence and triggered “sympathy selling” across the enterprise software industry, wiping out months of gains for Salesforce stock. The event occurred amid existing concerns about the software sector, including worries about the effect of artificial intelligence on subscription pricing models, which had already put pressure on stocks in the industry.
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Salesforce’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 2.1% on the news that investors continued to buy the dip despite renewed geopolitical jitters as the U.S.-Iran ceasefire came under doubt following the seizure of the Iranian vessel Touska.
While the fragile peace remained in question ahead of the ceasefire deadline later in the week, the software sector rebounded from a harsh “valuation reset” catalysed by AI fears. High-growth names like Datadog and ServiceNow led the charge as markets continued to decouple from Middle Eastern energy volatility. This resilience reflected a growing conviction that enterprise software remains a core structural winner, regardless of short-term macro turbulence.
Salesforce is down 31.5% since the beginning of the year, and at $173.81 per share, it is trading 40.3% below its 52-week high of $291.15 from May 2025. Investors who bought $1,000 worth of Salesforce’s shares 5 years ago would now be looking at only $744.34.
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