Salesforce (NYSE:CRM – Get Free Report) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 14.060-14.120 for the period, compared to the consensus estimate of 12.520. The company issued revenue guidance of $45.9 billion-$46.2 billion, compared to the consensus revenue estimate of $46.1 billion. Salesforce also updated its Q2 2027 guidance to 3.250-3.270 EPS.
Analyst Upgrades and Downgrades
A number of brokerages have weighed in on CRM. Roth Mkm reduced their price target on shares of Salesforce from $395.00 to $325.00 and set a “buy” rating on the stock in a research report on Thursday, February 26th. Oppenheimer reduced their price target on shares of Salesforce from $275.00 to $250.00 and set an “outperform” rating on the stock in a research report on Thursday, February 26th. Morgan Stanley reduced their price target on shares of Salesforce from $398.00 to $287.00 and set an “overweight” rating on the stock in a research report on Monday, February 23rd. The Goldman Sachs Group reaffirmed a “buy” rating and set a $281.00 price target on shares of Salesforce in a research report on Thursday, February 26th. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $215.00 price target on shares of Salesforce in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $272.73.
Get Our Latest Stock Report on CRM
Salesforce Trading Down 0.7%
Salesforce (NYSE:CRM – Get Free Report) last posted its earnings results on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, topping analysts’ consensus estimates of $3.13 by $0.75. Salesforce had a net margin of 17.96% and a return on equity of 15.38%. The business had revenue of $11.13 billion for the quarter, compared to analysts’ expectations of $11.05 billion. During the same period in the previous year, the company posted $2.58 earnings per share. The business’s revenue for the quarter was up 13.3% compared to the same quarter last year. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. Equities research analysts predict that Salesforce will post 9.71 EPS for the current fiscal year.
Salesforce declared that its board has approved a share repurchase program on Monday, March 16th that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the CRM provider to repurchase up to 14.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s management believes its stock is undervalued.
Insiders Place Their Bets
In other news, Director Laura Alber bought 2,571 shares of Salesforce stock in a transaction dated Thursday, March 19th. The shares were acquired at an average cost of $194.58 per share, with a total value of $500,265.18. Following the completion of the transaction, the director owned 9,530 shares in the company, valued at approximately $1,854,347.40. This trade represents a 36.94% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director David Blair Kirk bought 2,570 shares of Salesforce stock in a transaction dated Wednesday, March 18th. The shares were purchased at an average cost of $194.62 per share, for a total transaction of $500,173.40. Following the completion of the transaction, the director owned 13,689 shares of the company’s stock, valued at approximately $2,664,153.18. This represents a 23.11% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 3.50% of the company’s stock.
Trending Headlines about Salesforce
Here are the key news stories impacting Salesforce this week:
- Positive Sentiment: Salesforce beat expectations on both earnings and revenue, posting $3.88 EPS on $11.13 billion in revenue, while revenue grew 13% year over year. The company also lifted full-year profit guidance, which supports the case that its core business is still healthy. Reuters article
- Positive Sentiment: AI-related momentum remains a bright spot, with Salesforce saying Agentforce annualized revenue passed $1 billion and that AI-powered software adoption is helping growth. Investors may see this as evidence that Salesforce can monetize AI rather than just be disrupted by it. CNBC article
- Positive Sentiment: Management said it plans to keep investing in customer-facing growth and buy back shares, which could help support the stock if execution improves. CNBC article
- Neutral Sentiment: Despite the beat, Salesforce’s second-quarter revenue guidance was only around in line to slightly below expectations, which helps explain why the stock reaction has been muted rather than strongly positive. Investopedia article
- Negative Sentiment: Investors are still focused on the bigger AI disruption risk, and commentary from recent coverage suggests the market remains uncertain about whether Salesforce can defend its software franchise as AI reshapes enterprise buying patterns. Proactive Investors article
Institutional Trading of Salesforce
Several institutional investors have recently added to or reduced their stakes in CRM. Gilpin Wealth Management LLC acquired a new stake in Salesforce in the fourth quarter valued at $26,000. Texas Capital Bancshares Inc TX acquired a new stake in Salesforce in the third quarter valued at $28,000. Swiss RE Ltd. acquired a new stake in Salesforce in the fourth quarter valued at $28,000. Birchwood Financial Partners Inc. acquired a new stake in Salesforce in the fourth quarter valued at $28,000. Finally, Measured Wealth Private Client Group LLC acquired a new stake in Salesforce in the third quarter valued at $39,000. 80.43% of the stock is owned by institutional investors and hedge funds.
About Salesforce
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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