Salesforce (NYSE:CRM) Issues Q2 2027 Earnings Guidance

Salesforce (NYSE:CRM) issued an update on its second quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 3.250-3.270 for the period, compared to the consensus earnings per share 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.

Salesforce Price Performance

NYSE:CRM traded down $1.22 during trading hours on Wednesday, reaching $177.86. 12,979,221 shares of the company traded hands, compared to its average volume of 12,875,700. The firm’s 50-day moving average is $181.63 and its 200-day moving average is $211.60. The stock has a market cap of $145.53 billion, a P/E ratio of 22.77, a P/E/G 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 has a 1-year low of $163.52 and a 1-year high of $278.81.

Salesforce (NYSE:CRM) last announced its earnings results on Wednesday, May 27th. The CRM provider reported $999.00 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. Equities research analysts expect that Salesforce will post 9.71 earnings per share for the current fiscal year.

Salesforce announced that its Board of Directors has initiated a stock repurchase plan on Monday, March 16th that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the CRM provider to repurchase up to 14.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on CRM shares. Northland Securities lowered their price target on Salesforce from $267.00 to $229.00 and set a “market perform” rating on the stock in a report on Tuesday, March 10th. Piper Sandler decreased their price target on shares of Salesforce from $250.00 to $215.00 and set an “overweight” rating for the company in a report on Tuesday, April 14th. TD Cowen restated a “buy” rating on shares of Salesforce in a report on Friday, May 22nd. Morgan Stanley decreased their price target on shares of Salesforce from $398.00 to $287.00 and set an “overweight” rating for the company in a report on Monday, February 23rd. Finally, Wall Street Zen cut shares of Salesforce from a “buy” rating to a “hold” rating in a report on Saturday, April 18th. One analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $274.12.

Insider Buying and Selling

In other Salesforce news, Director Laura Alber purchased 2,571 shares of the business’s stock in a transaction on Thursday, March 19th. The stock was purchased at an average price of $194.58 per share, for a total transaction of $500,265.18. Following the completion of the purchase, the director directly owned 9,530 shares in the company, valued at approximately $1,854,347.40. This trade represents a 36.94% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director David Blair Kirk purchased 2,570 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were acquired at an average price of $194.62 per share, with a total value of $500,173.40. Following the purchase, the director owned 13,689 shares of the company’s stock, valued at approximately $2,664,153.18. This trade represents a 23.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 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

A number of institutional investors have recently made changes to their positions in CRM. Brighton Jones LLC boosted its stake in shares of Salesforce by 13.7% during the 4th quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider’s stock worth $8,582,000 after buying an additional 3,102 shares during the last quarter. Bison Wealth LLC boosted its stake in shares of Salesforce by 9.0% during the 4th quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider’s stock worth $747,000 after buying an additional 184 shares during the last quarter. Revolve Wealth Partners LLC boosted its stake in shares of Salesforce by 12.6% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider’s stock worth $611,000 after buying an additional 205 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Salesforce by 3.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,958 shares of the CRM provider’s stock worth $807,000 after buying an additional 106 shares during the last quarter. Finally, Schnieders Capital Management LLC. boosted its stake in shares of Salesforce by 118.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 1,854 shares of the CRM provider’s stock worth $506,000 after buying an additional 1,007 shares during the last quarter. Institutional investors own 80.43% of the company’s stock.

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.