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San Francisco, California-based Salesforce, Inc. (CRM) provides Customer Relationship Management technology that connects companies and customers. Valued at $249.93 billion by market cap, the company develops CRM software and applications focused on sales, customer service, marketing automation, analytics, and application development. The cloud-based software company is expected to announce its fiscal second-quarter earnings for 2025 on Wednesday, Sep. 4.
Ahead of the event, analysts expect CRM to report a profit of $1.74 per share on a diluted basis, up 6.8% from $1.63 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, CRM returned $2.20 billion in the form of share repurchases and $400 million in dividend payments to stockholders.
For the full year, analysts expect CRM to report EPS of $7.47, up 23.3% from $6.06 in fiscal 2024.
CRM stock has underperformed the S&P 500’s ($SPX) 20.5% gains over the past 52 weeks, with shares up 15.3% during this period. Similarly, it underperformed the S&P 500 Technology Sector SPDR’s (XLK) 22% gains over the same time frame.
On Jun. 12, CRM shares closed down more than 2% after an SEC filing showed CEO Benioff sold 15,000 shares of the company stock at an average price of $241.74, for a total transaction of $3.63 million on Jun. 10.
On May 30, CRM shares fell more than 19% after the company reported its Q1 results. Its adjusted EPS of $2.44 exceeded Wall Street expectations of $2.38. The company’s revenue of $9.13 billion fell short of consensus estimates of $9.14 billion. For Q2, CRM expects its adjusted EPS to be between $2.34 and $2.36. It expects Q2 revenue to grow 7% to 8% year over year to between $9.20 billion and $9.25 billion, below the consensus of $9.34 billion.
CRM expects full-year revenue to grow 8% to 9% to between $37.70 billion and $38 billion and adjusted EPS between $9.86 to $9.94. Meanwhile, it expects its full-year non-GAAP operating margin guidance of 32.5% and full-year operating cash flow growth of 21% to 24% year over year. However, it reduced its full-year GAAP operating margin guidance to 19.9%.
Analysts’ consensus opinion on CRM stock is bullish, with a “Moderate Buy” rating overall. Out of 40 analysts covering the stock, 26 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, 11 give a “Hold” rating, and one recommends a “Strong Sell.” The average analyst price target for CRM is $293.27, indicating a potential upside of 13.7% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
