Salesforce shares fall after KeyBanc downgrade on Agentforce

Salesforce shares fell 2.5% on Thursday after KeyBanc downgraded the stock to Sector Weight from Overweight.

KeyBanc’s analyst Jackson Ader pointed to partner and customer checks indicating Agentforce adoption is still in early stages and may take longer than expected to become a meaningful growth driver.

The brokerage said feedback at partner and customer events showed two consistent themes: customers’ data is not yet organized to support significant AI work, and Agentforce is not ready for broad deployment. Implementation partners are beginning to convert proof-of-concept projects into pipeline deals, KeyBanc added.

The downgrade came after Salesforce reported stronger-than-expected fiscal first-quarter results in late May. The company said demand for AI-powered products helped it close 98 deals worth more than $1 million in annual contract value. Publicly disclosed Agentforce customers include PepsiCo, Falabella and Singapore Airlines.

KeyBanc’s survey work found more chief information officers expect to deprioritize Salesforce within their IT budgets over the next 12 months than to increase spending. The firm said it has not found clear evidence in Salesforce’s public filings that net-new annual contract value is growing faster than overall contract value.

Jackson Ader wrote, ‘What we can piece together in the disclosed numbers does not signal building momentum.’ He also acknowledged the timing of the downgrade could be poor and added, ‘But at some point, we have to ask ourselves, why gather the evidence if we’re not going to use it.’

Salesforce’s guidance for the second quarter came in slightly below Wall Street expectations. Analysts have pointed to intensifying competition from companies such as OpenAI and Anthropic as pressure points for demand in enterprise AI.

On Wednesday Salesforce said the US Air Force’s 441st Vehicle Support Chain Operations Squadron had started using its Missionforce National Security platform to manage more than 84,000 vehicles across nearly 389 locations.

More than 70% of analysts covering Salesforce rate the stock a Buy. The average price target is $241.08, implying roughly 45% upside from the prior close. The stock has fallen about 35% so far in 2026.