Salesforce (NYSE:CRM) Releases Q2 2027 Earnings Guidance

Key Points

• Salesforce raised its Q2 2027 outlook, guiding for EPS of $3.25 to $3.27 versus the consensus estimate of $3.07. It also projected revenue of $11.3 billion to $11.4 billion, roughly in line with Wall Street expectations.
• The company also updated full-year FY 2027 guidance to EPS of $14.06 to $14.12. That suggests management remains confident in its near-term performance despite broader market concerns around growth and AI disruption.
• Analysts remain generally constructive, but several lowered price targets ahead of the update, while the stock slipped 0.7% to $177.86. MarketBeat notes the overall consensus rating is still “Moderate Buy” with an average price target of $274.12.

Salesforce (NYSE:CRM - Get Free Report) updated its second quarter 2027 earnings guidance on Wednesday. The company provided EPS guidance of 3.250-3.270 for the period, compared to the consensus EPS estimate of 3.070. The company issued revenue guidance of $11.3 billion-$11.4 billion, compared to the consensus revenue estimate of $11.4 billion. Salesforce also updated its FY 2027 guidance to 14.060-14.120 EPS.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Wells Fargo & Company reduced their price objective on Salesforce from $235.00 to $210.00 and set an "equal weight" rating on the stock in a research report on Thursday, February 26th. JPMorgan Chase & Co. reduced their price objective on Salesforce from $365.00 to $320.00 and set an "overweight" rating on the stock in a research report on Thursday, February 26th. Roth Mkm reduced their price objective on Salesforce from $395.00 to $325.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. Truist Financial set a $280.00 price objective on Salesforce in a research report on Thursday, February 26th. Finally, Northland Securities reduced their target price on Salesforce from $267.00 to $229.00 and set a "market perform" rating on the stock in a research report on Tuesday, March 10th. One 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 given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $274.12.

Salesforce Stock Down 0.7%

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

Salesforce (NYSE:CRM - Get Free Report) last announced its earnings results on Wednesday, May 27th. The CRM provider reported $999.00 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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. As a group, analysts forecast that Salesforce will post 9.71 EPS for the current fiscal year.

Salesforce announced that its board has approved a stock buyback plan on Monday, March 16th that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the CRM provider to purchase up to 14.1% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Salesforce

In related news, Director David Blair Kirk acquired 2,570 shares of Salesforce stock in a transaction on Wednesday, March 18th. The stock was purchased at an average cost 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. The trade was a 23.11% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Laura Alber acquired 2,571 shares of Salesforce stock in a transaction on Thursday, March 19th. The shares were bought at an average cost of $194.58 per share, with a total value of $500,265.18. Following the completion of the purchase, the director owned 9,530 shares in the company, valued at $1,854,347.40. The trade was 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 owned by corporate insiders.

Key Stories 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

Hedge Funds Weigh In On Salesforce

A number of large investors have recently modified their holdings of CRM. J. Stern & Co. LLP grew its holdings in shares of Salesforce by 24,056.7% in the 4th quarter. J. Stern & Co. LLP now owns 47,385,511 shares of the CRM provider's stock worth $12,552,896,000 after acquiring an additional 47,189,352 shares during the period. Hotchkis & Wiley Capital Management LLC acquired a new stake in shares of Salesforce in the 3rd quarter worth approximately $484,852,000. Alyeska Investment Group L.P. grew its holdings in shares of Salesforce by 285.4% in the 3rd quarter. Alyeska Investment Group L.P. now owns 2,487,627 shares of the CRM provider's stock worth $589,568,000 after acquiring an additional 1,842,117 shares during the period. Generation Investment Management LLP grew its holdings in shares of Salesforce by 52.4% in the 4th quarter. Generation Investment Management LLP now owns 2,772,875 shares of the CRM provider's stock worth $734,562,000 after acquiring an additional 953,647 shares during the period. Finally, Worldquant Millennium Advisors LLC grew its holdings in shares of Salesforce by 266.6% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 840,178 shares of the CRM provider's stock worth $229,108,000 after acquiring an additional 611,001 shares during the period. 80.43% of the stock is owned by hedge funds and other institutional investors.

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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