Salesforce (CRM) Insights: Earnings Report Reaction and Future Projections

Author: Logan Wright Updated: 02-27-2025 12:00 PM

Salesforce Stock Update: Earnings Performance and Analyst Reactions

Salesforce, Inc. (CRM) shares are facing a decline after the company released its latest earnings report. This report revealed results that were mixed, leading investors to reevaluate their positions.

Key Financial Highlights from the Earnings Report

The company's fourth-quarter adjusted earnings per share reached $2.78, surpassing analyst predictions of $2.61. However, this was overshadowed by sales of $9.99 billion, which fell short of the anticipated $10.04 billion.

Exceptional Growth in Data Cloud and AI

Salesforce's Data Cloud and Artificial Intelligence (AI) segments showed remarkable growth, generating annual recurring revenue of $900 million, marking an incredible 120% increase year-over-year. Notably, the Data Cloud has crossed a significant milestone with over 50 trillion records, and nearly 50% of the Fortune 100 companies are utilizing both AI and Data Cloud solutions.

Leadership's Perspective on Success

Marc Benioff, the chair and CEO of Salesforce, expressed pride in the company's performance, stating that they achieved record cash flow and over $60 billion in Remaining Performance Obligations (RPO). This performance reinforces the company's robust standing and strategic direction.

Future Financial Guidance

Looking forward, Salesforce has offered guidance for both the first quarter and the upcoming fiscal year 2026. They project adjusted earnings per share for the first quarter to be between $2.53 and $2.55, while analysts had estimated a figure of $2.61. Additionally, revenue for this quarter is expected to range from $9.71 billion to $9.76 billion compared to analyst expectations of around $9.9 billion.

Analysts Adjust Forecasts Post-Earnings Release

In the wake of the earnings announcement, various analysts have revisited their price targets for Salesforce's stock. Some notable adjustments include:

Wells Fargo's Michael Turrin maintained an Equal-Weight rating while lowering the price target from $345 to $310.
Piper Sandler's Brent Bracelin kept an Overweight rating but adjusted the price target from $405 to $400.
BofA Securities’ Brad Sills maintained a Buy rating and reduced the target from $440 to $400.
Stifel's Parker Lane upheld a Buy rating with a new price target of $375 down from $425.

Current Stock Performance and Market Reaction

As of the latest market data, Salesforce shares have decreased by 1.42%, currently trading at $303.17. This volatility highlights the market's reaction to the earnings performance and forward guidance.

Summary of Analyst Ratings Changes

The earnings report has elicited varied responses from analysts, with changes in ratings and price targets reflecting a cautious optimism about Salesforce's future earnings potential amidst recent performance numbers.

Frequently Asked Questions

What were the earnings per share for Salesforce in the latest report?

Salesforce reported adjusted earnings per share of $2.78, exceeding estimates of $2.61.

How did Salesforce's revenue compare to analyst expectations?

The company reported $9.99 billion in sales, which was below the analyst expectations of $10.04 billion.

What is the future earnings guidance provided by Salesforce?

Salesforce expects adjusted earnings per share between $2.53 and $2.55 for the first quarter of fiscal 2026.

Which major financial institutions adjusted their price targets for Salesforce?

Analysts from Wells Fargo, Piper Sandler, BofA Securities, and Stifel have all adjusted their price targets following the earnings report.

What is the current trading price of Salesforce shares?

Salesforce shares are currently trading at $303.17, reflecting a decrease of 1.42%.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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