CrowdStrike and Salesforce Face Earnings Tests Amid Software Stock Recovery
Enterprise software stocks CrowdStrike (CRWD) and Salesforce (CRM) are set to report earnings, offering insight into whether their recent rallies reflect sustainable momentum. Both companies have faced challenges due to concerns over AI disruption in the sector but have seen significant share price recoveries this year—CrowdStrike up more than 55% YTD and Salesforce gaining nearly 40% since June lows. The market is now betting that cybersecurity will benefit from, rather than be displaced by, artificial intelligence growth. The broader SaaS industry has struggled with fears of a 'SaaSpocalypse,' where AI reduces the need for traditional software licensing models. CrowdStrike CEO George Kurtz argues AI increases demand for security solutions as companies seek to secure their own AI deployments first. Meanwhile, Salesforce remains under pressure despite recent gains and is still down more than 20% year-to-date. Analysts are watching closely whether these results will confirm the strength of cybersecurity’s recovery or signal a potential overcorrection.
