Erste Group Bank Comments on Salesforce FY2027 Earnings

Key Points

• Erste Group Bank initiated FY2027 earnings coverage on Salesforce with an estimate of $10.17 EPS, slightly below the consensus of $10.30. It also projected FY2028 earnings of $11.07 EPS.
• Salesforce’s latest quarterly results beat expectations, posting $3.88 EPS on $11.13 billion in revenue versus estimates of $3.13 EPS and $11.05 billion. Revenue rose 13.3% year over year, and the company guided FY2027 EPS to 14.06-14.12.
• Analyst sentiment remains broadly positive, with Salesforce carrying a Moderate Buy consensus and an average price target of $259.26. The stock has also been supported by a $25 billion share buyback authorization and a quarterly dividend.

Salesforce Inc. (NYSE:CRM - Free Report) - Analysts at Erste Group Bank issued their FY2027 earnings estimates for Salesforce in a note issued to investors on Friday, June 5th. Erste Group Bank analyst S. Lingnau expects that the CRM provider will post earnings of $10.17 per share for the year. The consensus estimate for Salesforce's current full-year earnings is $10.30 per share. Erste Group Bank also issued estimates for Salesforce's FY2028 earnings at $11.07 EPS.

Salesforce (NYSE:CRM - Get Free Report) last posted its quarterly earnings results on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, topping the consensus estimate of $3.13 by $0.75. The business had revenue of $11.13 billion during the quarter, compared to the consensus estimate of $11.05 billion. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The company's quarterly revenue was up 13.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.58 earnings per share. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS.

CRM has been the subject of several other research reports. TD Cowen dropped their price target on shares of Salesforce from $250.00 to $240.00 and set a "buy" rating for the company in a research note on Thursday, May 28th. Cantor Fitzgerald reiterated an "overweight" rating and set a $250.00 target price on shares of Salesforce in a research note on Thursday, May 28th. UBS Group reiterated a "market outperform" rating on shares of Salesforce in a research note on Thursday, May 28th. Needham & Company LLC reiterated a "buy" rating and set a $400.00 target price on shares of Salesforce in a research note on Thursday, February 26th. Finally, Canaccord Genuity Group lowered their target price on shares of Salesforce from $250.00 to $225.00 and set a "buy" rating for the company in a research note on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $259.26.

Salesforce Stock Performance

NYSE:CRM opened at $166.81 on Friday. The company has a fifty day simple moving average of $180.50 and a two-hundred day simple moving average of $207.18. The company has a market cap of $136.61 billion, a price-to-earnings ratio of 19.31, a price-to-earnings-growth ratio of 1.06 and a beta of 1.16. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.15. Salesforce has a 52 week low of $163.31 and a 52 week high of $276.80.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Commonwealth Retirement Investments LLC purchased a new position in Salesforce in the fourth quarter valued at about $25,000. Board of the Pension Protection Fund purchased a new position in Salesforce in the fourth quarter valued at about $26,000. Key Capital Management INC purchased a new position in Salesforce in the fourth quarter valued at about $26,000. Gilpin Wealth Management LLC purchased a new position in Salesforce in the fourth quarter valued at about $26,000. Finally, Legacy Bridge LLC purchased a new position in Salesforce in the fourth quarter valued at about $27,000. 80.43% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Salesforce

In other news, Director David Blair Kirk purchased 2,570 shares of the company's stock in a transaction dated Wednesday, March 18th. The shares were acquired at an average cost of $194.62 per share, for a total transaction of $500,173.40. Following the completion of the purchase, the director directly owned 13,689 shares in the company, valued at $2,664,153.18. The trade was a 23.11% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Laura Alber purchased 2,571 shares of the company's stock in a transaction dated Thursday, March 19th. The shares were purchased at an average price of $194.58 per share, for a total transaction of $500,265.18. Following the completion of the purchase, the director owned 9,530 shares of the company's stock, valued at approximately $1,854,347.40. This trade represents a 36.94% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 3.50% of the stock is currently owned by corporate insiders.

Salesforce Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Thursday, June 11th will be given a $0.44 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a yield of 1.1%. Salesforce's payout ratio is 20.37%.

Salesforce declared that its Board of Directors has initiated a share buyback plan on Monday, March 16th that authorizes the company to repurchase $25.00 billion in shares. This repurchase authorization authorizes the CRM provider to repurchase up to 14.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

More Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce’s Agentforce annual recurring revenue has surged to $1.2 billion, up 205% year over year, suggesting its AI push is gaining real traction and could support longer-term growth. Salesforce's AI Business Is Growing More Than 200%, but the Stock Is Near a 52-Week Low. Something Has to Give.
• Positive Sentiment: Salesforce’s acquisition of m3ter should help expand usage-based AI revenue by improving metering and billing for Agentforce and other AI products, which may open new monetization opportunities. Salesforce m3ter Deal Highlights Shift Toward Usage Based AI Revenue
• Positive Sentiment: Reports that Salesforce’s stake in Anthropic has risen to about $5 billion highlight its strategic exposure to a leading AI startup and reinforce the company’s commitment to AI investment. Salesforce’s Anthropic Stake Reportedly Reaches $5 Billion as AI Startup Eyes IPO, Bloomberg Reports
• Neutral Sentiment: TitanX expanded its Salesforce integration with automated phone intent scoring and contact enrichment, which is incremental ecosystem news but not likely to move CRM shares by itself. TitanX Expands Salesforce and HubSpot Integrations with Automated Phone Intent™ Scoring and Contact Enrichment
• Negative Sentiment: Several recent articles note that Salesforce stock is still sliding, near a 52-week low, and that investors remain skeptical despite AI growth, reflecting ongoing valuation and execution concerns. Our Salesforce Stock Pick Has Flopped. We're Moving On.
• Negative Sentiment: Broader cloud-stock weakness, highlighted by Oracle’s sharp decline after earnings, is adding sector pressure that can weigh on Salesforce even when company-specific news is positive. Oracle Plunges 10% After Earnings, Salesforce Slips Near 52-Week Lows as Cloud Stocks Slide

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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