Software stocks Intuit and Salesforce tanked to start 2026 based on fears that artificial intelligence is crushing SaaS and the entire software industry.

AI is, without a doubt, shaking up the SaaS space, forcing Salesforce, Intuit, and countless others to quickly adapt and expand their AI efforts.

Salesforce and Intuit are software powerhouses that will not go down without a fight. Their most recent guidance and current sales and earnings estimates showcase resilience and impressive growth, indicating AI fears are overblown. The software giants are also successfully rolling out AI throughout much of their offerings.

INTU and CRM are two of the worst-performing S&P 500 stocks in 2026, down 35% and 27%, respectively. Their recent downturns are part of larger selloffs that have Intuit and Salesforce trading roughly 45% below their all-time highs.

This backdrop means that both large-cap tech stocks offer nearly 90% upside if they ever make it back to their previous peaks.

The selloff, mixed with their strong earnings growth outlooks, has also turned Intuit and Salesforce into potential value stocks right now.

CRM and INTU have found some support recently as Wall Street slowly dips its toes back into the software space. Now might be a great time to consider buying Salesforce and Intuit as they fight to thrive in the AI age.

Buy Software Stocks Now for Value, Growth, and AI Upside

Software stocks sold off sharply in early 2026 due to mounting investor fears that advancing AI technologies could disrupt traditional software business models.

Rapid improvements in large language models and agentic AI tools have raised concerns that companies might build custom in-house solutions or replace expensive SaaS subscriptions with AI-driven alternatives.

But there are zero guarantees that OpenAI, Anthropic, and others will be long-term winners given how quickly the technology is changing. More importantly, Intuit and Salesforce have both spent the past few years ramping up their own AI efforts into nearly every pocket of their portfolios.

Buy INTU Stock Now and Hold Forever?

Intuit Inc. (INTU Quick QuoteINTU - Free Report)  stock outpaced Microsoft over the past 20 years because its essential tax-heavy software allowed it to consistently generate impressive double-digit revenue growth. INTU has expanded its software portfolio far beyond TurboTax to become a one-stop shop for business and consumer finance, email marketing, and more via Credit Karma, QuickBooks, and Mailchimp.

Intuit in 2024 began revamping its business to quickly incorporate AI wherever it could to make sure it was ready to maintain its standing as a must-have hub for taxes, business software, and more. It grew its FY25 revenue by 16%, matching its 16% average revenue expansion over the past 10 years.

Image Source: Zacks Investment Research

Most recently, it expanded its Q2 FY26 revenue by 17%, as it “defines” a new category at the “intersection of AI and human intelligence, one that delivers autonomous, done-for-you experiences.” Intuit is projected to expand its sales by roughly 12.5% in 2026 and 2027 to reach $23.80 billion.

The tech firm is helping its approximately 100 million global customers experience new AI-boosted offerings to great success. INTU expanded its GAAP earnings by 31% in FY25, with its adjusted earnings 19% higher. The firm then increased its GAAP earnings by 49% in Q2 FY26 and its adjusted earnings by 25%.

Image Source: Zacks Investment Research

INTU’s upward EPS revisions land the stock a Zacks Rank #2 (Buy) right now, with it projected to grow its adjusted EPS by another 15% in FY26 and FY27. The chart above highlights its long-term earnings expansion outlook, which showcases its ability to successfully grow amid AI disruption fears.

The stock has climbed 1,530% in the past 20 years to crush Tech’s 820% and outclimb Microsoft’s 1,350%. This run includes Intuit’s ~45% tumble from its summer 2025 peaks. Its average Zacks price target offers 43% upside from its current levels, and it would have to climb nearly 90% (~87%) to return to its all-time highs.

Image Source: Zacks Investment Research

Intuit shares have found support at its post-Covid breakout lows as it continues to trade at its most oversold RSI levels of the past 20 years.

On the valuation front, INTU is trading at its lowest forward P/E since Wall Street began putting a massive premium on its SaaS offerings. It is trading at a discount to Tech’s 24.2X and 72% below its all-time highs at 22.8X forward earnings.

Should Traders and Long-Term Investors Buy CRM Stock Now?

Salesforce (CRM Quick QuoteCRM - Free Report)  was at the vanguard of business software, customer relationship management, and entire Saas industry. CRM’s growing portfolio supports sales, marketing, customer and client engagement, analytics, app development, and much more.

The company started to focus heavily on earnings expansion when the Fed first began lifting rates off their Covid lows as part of an industry-wide transition toward profitable growth.

Image Source: Zacks Investment Research

Salesforce is also buying back a ton of stock to reward shareholders, and it started paying dividends in 2024, joining the likes of Meta and Alphabet.

Most importantly, its effectively introduction AI across its portfolio. Salesforce launched its Agentforce AI tool back in 2024, continually adapting to the agentic AI space since then.

Agentforce reached $800 million in annual recurring revenue in fiscal 2026 (period ended January 31), up 169% YoY. “We’ve rebuilt Salesforce to become the operating system for the Agentic Enterprise, bringing humans and agents together on one trusted platform,” CEO Marc Benioff said in prepared Q4 remarks in late February.

The business software power grew its revenue by 10% last year as part of 10% average sales growth in the trailing three years. The company is projected to grow its revenue by 11% this year and over 9% next year to $50.32 billion.

Salesforce offered strong guidance for its FY27. It also said CRM is well on its way to $63 billion in revenue by FY30, as it rides Agentic AI as a massive tailwind. 

Image Source: Zacks Investment Research

CRM expanded its adjusted and its GAAP earnings by ~23% last year. Its earnings estimates have improved since its Q4 release with it projected to expand its adjusted EPS by 5% in FY27 and 12% in FY28. Salesforce is then expected to ramp up its bottom-line growth by an even more impressive clip.

CRM shares have climbed ~2,000% in the past two decades to more than double Tech’s 820%. Yet, the stock is down 9% in the past five years due, in large part, to its 47% drop from its December 2024 peaks.

Salesforce’s average Zacks price target marks 40% upside from its current levels. Plus, the stock would have to climb around 88% to return to its peaks.

Image Source: Zacks Investment Research

Salesforce is holding its ground near its pre-2020 breakout highs as it trades at its most oversold RSI levels since 2022 and 2008.

Its selloff, mixed with its strong earnings outlook, has CRM trading at a lowest-ever forward P/E at 20.3X. This also marks 90% value vs. its five-year highs and a solid discount to the Tech sector.