Why Salesforce Shares Are Gaining Favor for a 2026 Rebound

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After a challenging 2025 marked by investor skepticism over its artificial intelligence roadmap, Salesforce is closing the year on a notably more positive note. A confluence of three significant developments—a bullish analyst designation, a major strategic client win, and substantial insider buying—suggests the stock may have found its floor, setting the stage for a potential recovery.

A powerful signal emerged directly from the company's boardroom. Director G. Mason Morfit invested approximately $25 million to purchase additional Salesforce shares. In market parlance, an insider acquisition of this magnitude is frequently interpreted as a strong conviction that the recent share price decline has been overdone.

This vote of confidence comes after a truly difficult period for the equity. Since the start of the year, the stock has declined by nearly 32%, significantly underperforming the broader market. This punishment was largely meted out by investors concerned about slowing growth in user license subscriptions.

Strategic Win and Analyst Acclaim

The optimistic internal view is being echoed externally. Mizuho Securities has formally named the cloud software specialist its "Top Software Stock" for 2026. Analyst Gregg Moskowitz emphasized that Salesforce is methodically overcoming the adoption hurdles for its AI offerings. The firm's $340 price target points to substantial upside potential. The core thesis is that 2026 will see markedly improved performance as organic growth is reaccelerated by autonomous agent capabilities.

This outlook is bolstered by a concrete operational achievement. Pharmaceutical giant Novartis has selected the "Agentforce Life Sciences" platform in a multi-year agreement. This deal is viewed as critical validation of the market readiness for Salesforce's AI solution. It directly addresses a key investor concern: whether the new "Agentforce" products can transition successfully from pilot programs to large-scale commercial deployment.

Fundamentals and the Path Forward

Despite the weak share price action, the underlying business fundamentals remain sound. Salesforce's third-quarter results handily exceeded profit expectations, prompting management to raise its guidance. The stock's current valuation now reflects more of a value-level multiple, a shift from the historically high growth premiums it commanded.

All eyes are now on the quarterly report due in February 2026. The crucial metric for confirming a genuine turnaround will be the performance of remaining performance obligations (cRPO). Should this key growth indicator stabilize within a double-digit range, the bullish analyst thesis would gain considerable support. Furthermore, if the share price can maintain its technical footing above recent support levels, the path to a fundamental recovery appears increasingly clear.