Salesforce at 3.1x ARR, HubSpot Down 56%, Adobe at 11x Earnings: Are They Just Too Oversold Now?

Four months ago, the B2B software market experienced a significant downturn, dubbed the "SaaSpocalypse," with roughly $285 billion in market cap evaporating. This was driven by fears that AI agents would render per-seat licensing obsolete. The IGV software index fell over a third from its September highs, and around 75% of software stocks were technically oversold.

While the broad software index has since recovered more than 40%, iconic B2B leaders like Salesforce, HubSpot, and Adobe have continued to slide to fresh 52-week lows. The recovery has largely bypassed them, leading to speculation that these companies may now be oversold, particularly considering their revenue multiples and emerging AI revenue streams.

Salesforce, for example, saw its stock drop significantly as the market questioned its AI initiatives and the vulnerability of its core CRM business. However, Q1 FY2027 results revealed robust revenue growth and a record non-GAAP operating margin. Crucially, its "Agentforce" AI product line generated over $1.2 billion in ARR, growing over 200% year-over-year. Agentforce's consumption-based pricing model, tied to workflow units rather than seats, represents a significant architectural shift that could decouple revenue growth from headcount.

Despite strong underlying performance, Salesforce's stock continued to fall, trading around 11x forward non-GAAP earnings compared to the industry average of 27x. This suggests the market is overpricing the risk of AI-driven cannibalization, despite evidence from its income statement showing otherwise. Similarly, HubSpot, despite a 56% stock decline, reported strong operating numbers with 23% revenue growth and expanding operating margins. Its AI monetization signals, including a 90% year-over-year increase in active core seat users, are also pointing in a positive direction.