These three updates collectively signal a transition phase in the AI cycle. Growth remains strong, but markets are now rewarding efficiency and visibility, not merely expansion.
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1. Salesforce (CRM) – growth stabilising, expectations too high
12% YoY growth, fastest in two years, confirms enterprise software demand is improving.
The issue is guidance. Slightly soft FY2027 outlook tells investors AI monetisation will be gradual, not explosive.
Market takeaway: Salesforce is shifting from restructuring-driven margin expansion to steady AI productivity gains.
Implication: Not a demand problem. It is a valuation problem. Investors already priced stronger acceleration.
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2. C3.ai – AI hype meets economic reality
26% workforce reduction signals a pivot toward profitability.
Enterprise AI adoption remains slower than early narratives suggested.
Many customers are experimenting rather than scaling deployments.
Implication: The market is separating:
Infrastructure winners (compute providers)
From application-layer firms still proving ROI.
This reinforces scepticism toward pure-play AI software without durable cash flow.
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3. CoreWeave – paradox of hypergrowth
$5B revenue and $66.8B backlog confirm massive AI compute demand.
Tripling capex to $30B+ shows hyperscale-level expansion.
Yet shares fell because markets fear capital intensity and execution risk.
Key concern:
Growth funded by aggressive spending compresses near-term free cash flow.
Investors worry about oversupply if AI demand normalises.
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Big picture for 2026
The narrative is shifting from: “Build AI capacity at any cost” to “Show sustainable returns on AI investment.”
Winners now need:
Visible monetisation
Margin durability
Capex discipline
Strong growth alone is no longer sufficient. This explains why good numbers still trigger sell-offs. The market is repricing AI from a scarcity trade into a profitability cycle.
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