Salesforce Shares Find Support in AI-Driven Holiday Performance

After a recent pullback, Salesforce stock is seeking firmer ground. The focus now shifts to whether the combination of solid fundamentals and accelerating artificial intelligence adoption can propel the equity out of its recent soft patch. Evidence from the critical 2025 holiday shopping period provides a key piece of the puzzle.

The company's financial foundation, detailed in its December 2025 report for the third quarter of fiscal year 2026, remains robust. The figures demonstrate Salesforce's ability to grow profitably despite significant ongoing investments in AI technology.

Key highlights from the quarter include:
* Revenue: $10.3 billion, representing a 9% year-over-year increase (8% in constant currency).
* Earnings: GAAP earnings per share of $2.19 and non-GAAP EPS of $3.25, both surpassing analyst forecasts.
* Cash Flow: Operating cash flow grew 17% to reach $2.3 billion.

These results signal that the company is maintaining margin discipline while funding substantial investments in new AI infrastructure and platforms, alleviating investor concerns about a trade-off between growth and profitability.

"Agentic AI" Proves Its Mettle in Live Commerce

A primary factor contributing to the stock's stabilization is fresh data from the 2025 holiday season, with reports from early January 2026 confirming traction for Salesforce's strategic "Agentic AI" push.

During the peak holiday shopping weeks, global online sales saw an uptick. For the first time, autonomous AI agents from the Agentforce platform were explicitly tasked with influencing a measurable portion of transaction volume. Furthermore, these agents processed a record number of customer service inquiries. This real-world application offers tangible proof of the efficiency gains Salesforce has promised its enterprise clients, providing a counterweight to earlier fears about delays in monetizing AI investments.

Should investors sell immediately? Or is it worth buying Salesforce?

Technical Perspective and Market Sentiment

A slight rotation back into established, profitable software names was observed on Wall Street at the start of the week. Salesforce benefited from this defensive shift, stabilizing after the previous week's correction.

From a charting standpoint, the recent rebound from the $253 area is notable. In the near term, the $260 to $265 zone is viewed as an initial resistance level. On the downside, market participants are closely watching the $250 support area, as a break below could trigger additional technical selling pressure.

While the share price remains well below its 52-week high, it also sits comfortably above its annual low. Monday's closing price of $256.40 held above both the 50-day and 200-day moving averages, suggesting improving conditions following the recent decline.

Analyst Outlook and Insider Confidence

Following the Q3 report and holiday data, analyst sentiment leans constructive, with a consensus rating of "Moderate Buy." Average price targets cluster between $320 and $330, implying a potential upside of over 20% from current levels.

Notably, confidence appears within the company's leadership circle. In December, board member G. Mason Morfit purchased approximately 96,000 shares worth about $25 million. This substantial insider acquisition at prices near $260 is widely interpreted as a strong vote of confidence in the long-term outlook.

Conclusion: A Consolidation Phase with Underlying Strength

Salesforce is currently navigating a crucial consolidation phase. The technical path in early 2026 will likely hinge on the defense of the $250-$253 support zone and a sustained reclaiming of the $260 level. Fundamentally, the confirmed use of Agentforce AI during peak online retail periods, coupled with 9% revenue growth and expanding cash flows, points to a resilient business model—even as the stock price remains off its highs and volatility persists.