Customer relationship management giant Salesforce Inc. (NYSE:CRM) could highlight progress of AI-related tools and recent acquisitions when the company reports third-quarter financial results on Wednesday after market close.
Here are the earnings estimates, what experts are saying ahead of the report and key items to watch.
Earnings Estimates
Analysts expect Salesforce to report third-quarter revenue of $10.27 billion, up from $9.44 billion in last year's third quarter, according to data from Benzinga Pro.
The company has beaten analyst revenue estimates in two straight quarters and in eight of the last 10 quarters overall.
Salesforce reported record revenue of $10.24 billion in the second quarter. Current estimates call for the company to top that record in the third quarter.
Analysts expect Salesforce to report third-quarter earnings per share of $2.86, up from $2.41 in last year's third quarter.
The company has beaten analyst estimates for earnings per share in three straight quarters and in nine of the last 10 quarters overall.
Guidance from the company calls for third-quarter revenue to be in a range of $10.24 billion to $10.29 billion and earnings per share to be in a range of $2.84 to $2.86.
What Experts Are Saying
Freedom Capital Markets Chief Market Strategist Jay Woods cautioned on the company's AI efforts ahead of third-quarter results.
"Salesforce has become the poster child of the AI/tech spend that failed to keep going. As price momentum around AI related names continues to hit a recent lag, CRM was the first to feel that effect," Woods said in a weekly newsletter.
Woods said there was "justified" buzz and hype around the company's AgentForce. The market expert said Salesforce is now being judged on its ability to monetize AI.
"The AI narrative is loud and under the microscope, if they report slower growth or weaker guidance then investors may reassess its future trajectory."
Woods said a look at the Salesforce stock chart shows signs of cracking.
"This $230 level has been tested twice before and held – will it hold again?"
Woods said the chart shows there is more room to the downside before Salesforce stock would be considered oversold, which could put pressure on shares around earnings.
Here are recent analyst ratings and their price targets on the stock:
- Citizens: Reiterated Market Outperform rating, with $430 price target
- Oppenheimer: Maintained Outperform rating, lowered price target from $315 to $300
- Citigroup: Maintained Neutral rating, lowered price target from $276 to $253
- Cantor Fitzgerald: Reiterated Overweight rating, with $325 price target
- Bank of America: Maintained Buy rating, lowered price target from $325 to $305
Key Items to Watch
Salesforce reported 10% year-over-year revenue growth in the second quarter.
With the company highlighting strong remaining performance obligations of $29.4 billion in the second quarter, investors may want to see more continued double-digit growth and perhaps higher growth in the third quarter.
Salesforce raised its full-year revenue and earnings per share guidance after second-quarter results. The updated guidance failed to win over investors and analysts with many expecting higher numbers for the full year.
With record revenue expected in the third quarter and potentially already baked into the share price, the company’s raised guidance is likely expected.
Guidance will likely be the determining factor into whether Salesforce stock trades higher after financial results.
One item that could help guidance is the company's recent acquisitions, which likely aren't factored into the previous guidance.
The company completed its acquisition of Informatica in November. Salesforce also announced and closed the acquisitions of Doti and Spindle AI in November.
Doti is an agentic enterprise search company and Spindle AI is an agentic analytics platform. The acquisitions are expected to boost the Agentforce platform and Salesforce's AI efforts. The acquisitions of the three companies in November could see Salesforce factor their results into future guidance.
Salesforce Stock Down in 2025
Salesforce stock is up 1.2% to $235.71 on Tuesday versus a 52-week trading range of $221.96 to $369.00. Salesforce shares are down 29.5% year-to-date in 2025.
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