Investor fears that generative AI would disrupt enterprise software triggered a significant sell-off for Salesforce and Workday in 2026. This decline followed a broader market rotation away from software toward AI infrastructure. Analysts specifically cited concerns that AI would democratize development and erode traditional seat-based pricing models.
Recent earnings reports from Salesforce and Workday reveal a more robust financial reality than anticipated. Both companies reported solid revenue growth and successful monetization of integrated AI products. These incumbents are leveraging proprietary data and large customer bases to adapt, effectively blunting competition from AI-native startups.