Salesforce (NYSE:CRM) Updates FY 2027 Earnings Guidance

Salesforce (NYSE:CRM) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 14.060-14.120 for the period, compared to the consensus earnings per share 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 Trading Down 0.7%

CRM stock traded down $1.22 during midday trading on Wednesday, hitting $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 12-month low of $163.52 and a 12-month high of $278.81. The company’s 50-day moving average price is $181.63 and its 200 day moving average price is $211.60. The firm has a market cap of $145.53 billion, a PE ratio of 22.77, a price-to-earnings-growth ratio of 1.25 and a beta of 1.14. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.76 and a quick ratio of 0.76.

Salesforce (NYSE:CRM) last released its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $999.00 earnings per share 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. On average, equities research analysts predict that Salesforce will post 9.71 earnings per share for the current fiscal year.

Salesforce announced that its board has authorized a share repurchase plan on Monday, March 16th that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the CRM provider to buy up to 14.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CRM. Barclays decreased their price objective on Salesforce from $265.00 to $252.00 and set an “overweight” rating on the stock in a report on Thursday, February 26th. JPMorgan Chase & Co. decreased their price objective on Salesforce from $365.00 to $320.00 and set an “overweight” rating on the stock in a report on Thursday, February 26th. Wedbush reaffirmed an “outperform” rating and issued a $375.00 price objective on shares of Salesforce in a report on Tuesday, February 24th. UBS Group decreased their price objective on Salesforce from $200.00 to $185.00 and set a “neutral” rating on the stock in a report on Thursday, May 21st. Finally, BMO Capital Markets decreased their price objective on Salesforce from $235.00 to $225.00 and set an “outperform” 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 assigned a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Salesforce presently has a consensus rating of “Moderate Buy” and an average target price of $274.12.

Insiders Place Their Bets

In other Salesforce news, Director Laura Alber acquired 2,571 shares of Salesforce stock in a transaction that occurred on Thursday, March 19th. The shares were acquired 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 directly owned 9,530 shares of the company’s stock, valued at $1,854,347.40. This represents a 36.94% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director David Blair Kirk acquired 2,570 shares of Salesforce stock in a transaction that occurred on Wednesday, March 18th. The stock was 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 of the company’s stock, valued at $2,664,153.18. This represents a 23.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 3.50% of the company’s stock.

Salesforce News Roundup

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

Large investors have recently bought and sold shares of the business. Gilpin Wealth Management LLC acquired a new position in Salesforce in the 4th quarter worth about $26,000. Texas Capital Bancshares Inc TX acquired a new position in Salesforce in the 3rd quarter worth about $28,000. Swiss RE Ltd. acquired a new position in Salesforce in the 4th quarter worth about $28,000. Birchwood Financial Partners Inc. acquired a new position in Salesforce in the 4th quarter worth about $28,000. Finally, Measured Wealth Private Client Group LLC acquired a new position in Salesforce in the 3rd quarter worth about $39,000. 80.43% of the stock is owned by institutional investors and hedge funds.

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.