Salesforce Inc. (NYSE:CRM – Get Free Report) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $205.62, but opened at $230.05. Salesforce shares last traded at $246.7770, with a volume of 11,656,799 shares trading hands.
The CRM provider reported $5.90 earnings per share for the quarter, topping analysts’ consensus estimates of $3.27 by $2.63. The firm had revenue of $11.35 billion during the quarter, compared to analyst estimates of $11.33 billion. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The company’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same period in the prior year, the business earned $2.91 EPS. Salesforce has set its FY 2027 guidance at 16.670-16.710 EPS and its Q3 2027 guidance at 3.420-3.440 EPS.
More Salesforce News
Here are the key news stories impacting Salesforce this week:
- Positive Sentiment: Earnings beat expectations: Salesforce reported adjusted earnings of $5.90 per share, well above the $3.27 analyst consensus, while revenue rose 10.8% year over year to $11.35 billion, slightly exceeding estimates. Salesforce Q2 Earnings and Revenues Top Estimates
- Positive Sentiment: Raised outlook: Management increased fiscal 2027 guidance to $46.1 billion-$46.4 billion in revenue and $16.67-$16.71 in EPS. Third-quarter EPS guidance of $3.42-$3.44 also exceeds the $3.16 consensus, signaling confidence in sustained growth. Salesforce Raises Annual Revenue Forecasts on AI Product Momentum
- Positive Sentiment: AI adoption is accelerating: Agentforce annual recurring revenue reached $1.5 billion, and management said AI usage on the platform increased sixfold. These metrics help counter fears that generative AI could replace traditional enterprise software. Salesforce Q2 2027 Earnings Call Highlights
- Positive Sentiment: Anthropic partnership expands: Salesforce and Anthropic introduced “Claudeforce,” integrating Claude with Salesforce data, workflows and 37 prebuilt sales skills. The collaboration supports Salesforce’s effort to make AI agents a growth engine and reinforces its competitive positioning. Salesforce and Anthropic Announce Claudeforce
- Neutral Sentiment: Analyst sentiment improved: Needham reaffirmed its Buy rating with a $400 target, while Monness Crespi & Hardt raised its target to $266 and Cantor Fitzgerald maintained Overweight with a $250 target. These targets imply substantial upside but do not guarantee future performance.
- Negative Sentiment: Risks remain: Revenue growth remains near 11%, and Salesforce’s stock has been volatile amid concerns about AI-driven software disruption. The large investment gain cited in the quarter may also be less recurring than operating results.
Wall Street Analyst Weigh In
Check Out Our Latest Stock Report on Salesforce
Institutional Trading of Salesforce
Large investors have recently added to or reduced their stakes in the company. Commonwealth Retirement Investments LLC bought a new position in Salesforce during the fourth quarter worth about $25,000. Gilpin Wealth Management LLC acquired a new stake in shares of Salesforce in the fourth quarter valued at approximately $26,000. Birchwood Financial Partners Inc. bought a new position in shares of Salesforce during the 4th quarter worth approximately $28,000. Swiss RE Ltd. bought a new position in shares of Salesforce during the 4th quarter worth approximately $28,000. Finally, Dogwood Wealth Management LLC increased its holdings in shares of Salesforce by 285.7% during the 4th quarter. Dogwood Wealth Management LLC now owns 108 shares of the CRM provider’s stock worth $29,000 after acquiring an additional 80 shares during the last quarter. Institutional investors and hedge funds own 80.43% of the company’s stock.
Salesforce Stock Up 20.7%
The firm has a market cap of $203.18 billion, a price-to-earnings ratio of 28.64, a P/E/G ratio of 1.11 and a beta of 1.16. The firm has a fifty day simple moving average of $177.13 and a 200-day simple moving average of $181.60. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.79 and a current ratio of 0.79.
Salesforce Company Profile
Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.
Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.
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