Salesforce (NYSE:CRM) Updates 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

CRM stock opened at $177.86 on Thursday. The company has a current ratio of 0.76, a quick ratio of 0.76 and a debt-to-equity ratio of 0.18. Salesforce has a one year low of $163.52 and a one year high of $278.81. The firm has a market capitalization of $145.53 billion, a PE ratio of 22.77, a P/E/G ratio of 1.25 and a beta of 1.14. The firm has a 50-day moving average of $181.23 and a two-hundred day moving average of $211.16.

Salesforce (NYSE:CRM) last posted its quarterly earnings data on Wednesday, May 27th. The CRM provider reported $3.88 EPS for the quarter, beating analysts’ consensus estimates of $3.13 by $0.75. Salesforce had a net margin of 17.96% and a return on equity of 15.38%. The company had revenue of $11.13 billion during the quarter, compared to analyst estimates of $11.05 billion. During the same period in the prior year, the firm earned $2.58 earnings per share. The business’s quarterly revenue was up 13.3% on a year-over-year basis. 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, analysts forecast that Salesforce will post 9.71 earnings per share for the current year.

Salesforce announced that its board has approved a share repurchase plan on Monday, March 16th that permits the company to buyback $25.00 billion in shares. This buyback authorization permits the CRM provider to purchase up to 14.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on CRM shares. Northland Securities reduced their price target on shares of Salesforce from $267.00 to $229.00 and set a “market perform” rating for the company in a research report on Tuesday, March 10th. Sanford C. Bernstein reduced their price target on shares of Salesforce from $223.00 to $194.00 and set an “underperform” rating for the company in a research report on Thursday, February 26th. Oppenheimer reduced their price target on shares of Salesforce from $275.00 to $250.00 and set an “outperform” rating for the company in a research report on Thursday, February 26th. TD Cowen reissued a “buy” rating on shares of Salesforce in a research report on Friday, May 22nd. Finally, DA Davidson reduced their price target on shares of Salesforce from $235.00 to $200.00 and set a “neutral” rating for the company in a research report on Friday, February 27th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Salesforce currently has an average rating of “Moderate Buy” and an average price target of $272.73.

Insider Buying and Selling

In other news, Director Laura Alber acquired 2,571 shares of the company’s stock in a transaction that occurred on Thursday, March 19th. The shares were purchased at an average price of $194.58 per share, for a total transaction of $500,265.18. Following the completion of the acquisition, the director owned 9,530 shares of the company’s stock, valued at approximately $1,854,347.40. This represents a 36.94% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director David Blair Kirk acquired 2,570 shares of the company’s stock in a transaction that occurred on Wednesday, March 18th. The stock was purchased at an average price of $194.62 per share, for a total transaction of $500,173.40. Following the acquisition, the director directly owned 13,689 shares of the company’s stock, valued at $2,664,153.18. The trade was a 23.11% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 3.50% of the stock is owned by corporate insiders.

More Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce beat expectations on both earnings and revenue, posting $3.88 EPS on $11.13 billion in revenue, while revenue grew 13% year over year. The company also lifted full-year profit guidance, which supports the case that its core business is still healthy. Reuters article
• Positive Sentiment: AI-related momentum remains a bright spot, with Salesforce saying Agentforce annualized revenue passed $1 billion and that AI-powered software adoption is helping growth. Investors may see this as evidence that Salesforce can monetize AI rather than just be disrupted by it. CNBC article
• Positive Sentiment: Management said it plans to keep investing in customer-facing growth and buy back shares, which could help support the stock if execution improves. CNBC article
• Neutral Sentiment: Despite the beat, Salesforce’s second-quarter revenue guidance was only around in line to slightly below expectations, which helps explain why the stock reaction has been muted rather than strongly positive. Investopedia article
• Negative Sentiment: Investors are still focused on the bigger AI disruption risk, and commentary from recent coverage suggests the market remains uncertain about whether Salesforce can defend its software franchise as AI reshapes enterprise buying patterns. Proactive Investors article

Hedge Funds Weigh In On Salesforce

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CRM. Brighton Jones LLC grew its holdings in Salesforce by 13.7% during the fourth quarter. Brighton Jones LLC now owns 25,668 shares of the CRM provider’s stock valued at $8,582,000 after purchasing an additional 3,102 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in Salesforce by 12.6% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,827 shares of the CRM provider’s stock valued at $611,000 after purchasing an additional 205 shares during the last quarter. Bison Wealth LLC grew its holdings in Salesforce by 9.0% during the fourth quarter. Bison Wealth LLC now owns 2,234 shares of the CRM provider’s stock valued at $747,000 after purchasing an additional 184 shares during the last quarter. Sivia Capital Partners LLC grew its holdings in Salesforce by 3.7% during the second quarter. Sivia Capital Partners LLC now owns 2,958 shares of the CRM provider’s stock valued at $807,000 after purchasing an additional 106 shares during the last quarter. Finally, United Bank grew its holdings in Salesforce by 5.2% during the second quarter. United Bank now owns 10,198 shares of the CRM provider’s stock valued at $2,781,000 after purchasing an additional 500 shares during the last quarter. Institutional investors and hedge funds 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.