Salesforce (NYSE:CRM) Issues FY 2027 Earnings Guidance

Key Points

• Salesforce raised its FY 2027 outlook, guiding for EPS of 14.06 to 14.12 versus the 12.52 consensus estimate. Revenue guidance was set at $45.9 billion to $46.2 billion, roughly in line with expectations.
• The company also issued Q2 2027 EPS guidance of 3.25 to 3.27, signaling management’s confidence heading into the next quarter.
• Shares traded lower on the day despite the guidance update, while analysts remain generally constructive overall with a Moderate Buy rating and an average target price of $274.12.

Salesforce (NYSE:CRM - Get Free Report) updated its FY 2027 earnings guidance on Wednesday. The company provided EPS guidance of 14.060-14.120 for the period, compared to the consensus EPS 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.

Salesforce Price Performance

Shares of CRM stock traded down $1.22 during trading hours on Wednesday, hitting $177.86. 12,979,221 shares of the company's stock were exchanged, compared to its average volume of 12,875,700. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.18. The firm has a market cap of $145.53 billion, a P/E ratio of 22.77, a P/E/G ratio of 1.25 and a beta of 1.14. The firm has a 50 day moving average of $181.63 and a two-hundred day moving average of $211.60. Salesforce has a fifty-two week low of $163.52 and a fifty-two week high of $278.81.

Salesforce (NYSE:CRM - Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $999.00 EPS for the quarter, beating the consensus estimate of $3.12 by $995.88. Salesforce had a return on equity of 15.38% and a net margin of 17.96%.Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. Sell-side analysts forecast that Salesforce will post 9.71 EPS for the current year.

Salesforce declared that its Board of Directors has approved a stock repurchase program on Monday, March 16th that authorizes the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization authorizes the CRM provider to repurchase up to 14.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

CRM has been the subject of several research reports. Wall Street Zen downgraded Salesforce from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Northland Securities dropped their target price on Salesforce from $267.00 to $229.00 and set a "market perform" rating for the company in a research report on Tuesday, March 10th. DA Davidson dropped their price objective on shares of Salesforce from $235.00 to $200.00 and set a "neutral" rating on the stock in a research report on Friday, February 27th. Cantor Fitzgerald reissued an "overweight" rating on shares of Salesforce in a research report on Thursday, February 26th. Finally, BMO Capital Markets decreased their target price on Salesforce from $235.00 to $225.00 and set an "outperform" rating for the company in a research note on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $274.12.

Insider Buying and Selling at Salesforce

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

Key Headlines Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Shares are moving up ahead of earnings as traders and analysts look for signs that Salesforce can stabilize growth and reassure investors that AI will support, rather than disrupt, the enterprise software model.
• Positive Sentiment: Jefferies expects an in-line quarter and sees revenue and current remaining performance obligations rising, which supports the view that underlying demand remains solid. Article Title
• Positive Sentiment: BTIG reaffirmed a Buy rating and set a $255 price target, suggesting meaningful upside if the company delivers a constructive outlook. Article Title
• Positive Sentiment: Some bullish commentary argues Salesforce is undervalued and that AI-related products are beginning to drive stronger monetization and cash flow, which could help sentiment if the company confirms progress on the call.
• Neutral Sentiment: Traders are expecting a large post-earnings move, so the stock may stay volatile after results as investors react to guidance more than just the headline numbers.
• Negative Sentiment: Bearish AI-related research from Bank of America highlights a key investor concern: AI could be a growth risk for Salesforce if customers shift spending patterns or adoption fails to meaningfully accelerate. Article Title

Institutional Trading of Salesforce

Several large investors have recently bought and sold shares of CRM. Brighton Jones LLC grew its holdings in Salesforce by 13.7% in the fourth quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider's stock valued at $8,582,000 after purchasing an additional 3,102 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in Salesforce by 12.6% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider's stock valued at $611,000 after purchasing an additional 205 shares during the last quarter. Bison Wealth LLC grew its holdings in Salesforce by 9.0% in the fourth quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider's stock valued at $747,000 after purchasing an additional 184 shares during the last quarter. Sivia Capital Partners LLC grew its holdings in Salesforce by 3.7% in the second quarter. Sivia Capital Partners LLC now owns 2,958 shares of the CRM provider's stock valued at $807,000 after purchasing an additional 106 shares during the last quarter. Finally, United Bank boosted its stake in shares of Salesforce by 5.2% during the second quarter. United Bank now owns 10,198 shares of the CRM provider's stock valued at $2,781,000 after acquiring an additional 500 shares during the last quarter. Institutional investors and hedge funds own 80.43% of the company's stock.

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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