Salesforce (NYSE:CRM) Releases Earnings Results, Beats Expectations By $995.88 EPS

Key Points

• Salesforce reported earnings that beat expectations, with the article saying the company posted $999.00 EPS versus a consensus estimate of $3.12. It also reported a 17.96% net margin and 15.38% return on equity.
• The company raised guidance, updating FY 2027 EPS guidance to 14.060–14.120 and Q2 2027 EPS guidance to 3.250–3.270. This suggests management is still projecting solid profitability ahead.
• Salesforce shares fell slightly despite the earnings report, trading down 0.7% to $177.86 on Wednesday. The company also has a newly authorized $25 billion share repurchase program, which may signal confidence in the stock’s valuation.

Salesforce (NYSE:CRM - Get Free Report) announced its quarterly earnings results on Wednesday. The CRM provider reported $999.00 EPS for the quarter, topping the consensus estimate of $3.12 by $995.88, Zacks reports. Salesforce had a net margin of 17.96% and a return on equity of 15.38%. Salesforce updated its FY 2027 guidance to 14.060-14.120 EPS and its Q2 2027 guidance to 3.250-3.270 EPS.

Salesforce Trading Down 0.7%

Shares of NYSE:CRM traded down $1.22 during trading on Wednesday, reaching $177.86. The stock had a trading volume of 12,979,221 shares, compared to its average volume of 12,875,700. Salesforce has a fifty-two week low of $163.52 and a fifty-two week high of $278.81. 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 business has a fifty day moving average price of $181.63 and a 200-day moving average price of $211.60. The stock has a market cap of $145.53 billion, a P/E ratio of 22.77, a PEG ratio of 1.25 and a beta of 1.14.

Salesforce declared that its board has authorized a share repurchase plan on Monday, March 16th that permits the company to repurchase $25.00 billion in shares. This repurchase authorization permits the CRM provider to reacquire up to 14.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Activity at Salesforce

In other news, Director Laura Alber purchased 2,571 shares of the stock in a transaction that occurred on Thursday, March 19th. The stock was acquired at an average cost of $194.58 per share, with a total value of $500,265.18. Following the acquisition, 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 ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director David Blair Kirk purchased 2,570 shares of the stock in a transaction that occurred on Wednesday, March 18th. The shares were purchased at an average cost of $194.62 per share, with a total value of $500,173.40. Following the completion of the acquisition, the director owned 13,689 shares in the company, valued at approximately $2,664,153.18. This represents a 23.11% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On Salesforce

Large investors have recently added to or reduced their stakes in the company. Gilpin Wealth Management LLC acquired a new stake in Salesforce during the 4th quarter valued at $26,000. Texas Capital Bancshares Inc TX acquired a new stake in Salesforce during the 3rd quarter valued at $28,000. Swiss RE Ltd. acquired a new stake in Salesforce during the 4th quarter valued at $28,000. Birchwood Financial Partners Inc. acquired a new position in Salesforce during the 4th quarter worth $28,000. Finally, Measured Wealth Private Client Group LLC acquired a new position in Salesforce during the 3rd quarter worth $39,000. 80.43% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Jefferies Financial Group restated a "buy" rating on shares of Salesforce in a research note on Tuesday. Stifel Nicolaus dropped their price objective on shares of Salesforce from $300.00 to $250.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. Morgan Stanley lowered their target price on shares of Salesforce from $398.00 to $287.00 and set an "overweight" rating on the stock in a report on Monday, February 23rd. UBS Group lowered their target price on shares of Salesforce from $200.00 to $185.00 and set a "neutral" rating on the stock in a report on Thursday, May 21st. Finally, Roth Mkm lowered their target price on shares of Salesforce from $395.00 to $325.00 and set a "buy" rating on the stock in a report on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Salesforce currently has an average rating of "Moderate Buy" and an average target price of $274.12.

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.