Salesforce (NYSE:CRM) Updates Q2 2027 Earnings Guidance

Salesforce (NYSE:CRM) updated its second quarter 2027 earnings guidance on Wednesday. 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.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on CRM. BTIG Research reiterated a “buy” rating and set a $255.00 price target on shares of Salesforce in a report on Tuesday. BMO Capital Markets lowered their price target on shares of Salesforce from $225.00 to $215.00 and set an “outperform” rating for the company in a report on Thursday. Cantor Fitzgerald reiterated an “overweight” rating and set a $250.00 price target on shares of Salesforce in a report on Thursday. Stifel Nicolaus lowered their price target on shares of Salesforce from $300.00 to $250.00 and set a “buy” rating for the company in a report on Thursday, February 26th. Finally, Weiss Ratings downgraded shares of Salesforce from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, May 20th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, Salesforce currently has an average rating of “Moderate Buy” and a consensus target price of $259.47.

Salesforce Price Performance

CRM opened at $176.30 on Friday. The company’s 50 day simple moving average is $180.84 and its 200 day simple moving average is $210.72. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.76 and a current ratio of 0.76. Salesforce has a 1 year low of $163.52 and a 1 year high of $276.80. The stock has a market capitalization of $144.26 billion, a PE ratio of 20.41, a P/E/G ratio of 1.23 and a beta of 1.14.

Salesforce (NYSE:CRM) last released its earnings results on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.13 by $0.75. Salesforce had a net margin of 18.73% and a return on equity of 16.70%. The business had revenue of $11.13 billion for the quarter, compared to analysts’ expectations of $11.05 billion. During the same period last year, the company earned $2.58 earnings per share. The company’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. As a group, sell-side analysts expect that Salesforce will post 9.72 EPS for the current year.

Salesforce Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be given a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, June 11th. Salesforce’s payout ratio is 22.54%.

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

Insider Buying and Selling

In other Salesforce news, Director Laura Alber purchased 2,571 shares of Salesforce stock in a transaction on Thursday, March 19th. The shares were purchased at an average cost of $194.58 per share, with a total value of $500,265.18. Following the completion of the transaction, the director directly owned 9,530 shares in the company, valued at approximately $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 at the SEC website. Also, Director David Blair Kirk purchased 2,570 shares of Salesforce stock in a transaction on Wednesday, March 18th. The shares were acquired at an average cost of $194.62 per share, for a total transaction of $500,173.40. Following the completion of the transaction, the director 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. Insiders own 3.50% of the company’s stock.

Salesforce News Summary

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce topped Q1 earnings and revenue estimates, and management raised full-year profit guidance while saying Agentforce annualized revenue surpassed $1 billion. Reuters article
• Positive Sentiment: The company announced a $25 billion accelerated share repurchase, which should support EPS and signals confidence in cash generation. Seeking Alpha article
• Positive Sentiment: Salesforce expanded its Agentforce Health partnership with CVS Health, highlighting additional real-world adoption of its AI products. PR Newswire article
• Neutral Sentiment: Salesforce declared a quarterly dividend of $0.44 per share, a new shareholder-return measure, but the 1.0% yield is modest and unlikely to be a major catalyst. Business Wire article
• Negative Sentiment: Several analysts cut price targets after the report, citing concern that Salesforce’s AI narrative has not fully offset growth and margin worries. Benzinga article
• Negative Sentiment: Bears argue the company still faces an “AI problem,” with investors questioning whether AI agents can defend Salesforce’s core revenue model as competition intensifies. TheStreet article

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp lifted its position in Salesforce by 0.3% during the third quarter. State Street Corp now owns 49,420,657 shares of the CRM provider’s stock valued at $11,732,966,000 after buying an additional 159,739 shares in the last quarter. J. Stern & Co. LLP lifted its position in Salesforce by 24,056.7% during the fourth quarter. J. Stern & Co. LLP now owns 47,385,511 shares of the CRM provider’s stock valued at $12,552,896,000 after buying an additional 47,189,352 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in Salesforce by 8.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,839,178 shares of the CRM provider’s stock valued at $2,076,678,000 after buying an additional 582,314 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of Salesforce by 2.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 6,903,151 shares of the CRM provider’s stock valued at $1,828,714,000 after purchasing an additional 170,558 shares during the period. Finally, FIL Ltd raised its stake in shares of Salesforce by 10.8% during the fourth quarter. FIL Ltd now owns 4,588,104 shares of the CRM provider’s stock valued at $1,215,435,000 after purchasing an additional 446,656 shares during the period. 80.43% of the stock is owned by institutional investors and hedge funds.

Salesforce Company Profile

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.