Salesforce (CRM) is set to release its fourth fiscal quarter results after the market closes on Wednesday, February 26, followed by a conference call at 5:00 pm ET. Investors will be closely watching the company’s guidance and performance metrics.
In terms of guidance, Salesforce previously projected FY25 adjusted earnings per share (EPS) of $9.98-$10.03 on revenue of $37.8 billion to $38 billion, compared to analyst estimates of $10.11 and $37.9 billion at the time. Since then, the consensus for EPS has dropped slightly to $10.02, while revenue estimates have risen to $37.95 billion. For Q4, the company guided adjusted EPS of $2.57-$2.62 on revenue of $9.9 billion to $10.1 billion. Consensus estimates for Q4 earnings have fallen to $2.61, with revenue expectations dropping to $10.04 billion from $10.05 billion.
Recent developments include partnerships and product updates. In November, Salesforce announced that Fisher & Paykel would deploy Agentforce to scale customer support. The company also introduced lifecycle management tools for Agentforce. In December, Salesforce expanded its collaboration with Adecco Group (AHEXY) to enhance recruiting processes and partnered with Vivint to augment customer service using Agentforce. Additionally, Salesforce launched “Agentforce 2.0” and unveiled Agentforce for Retail and Retail Cloud in January, aimed at boosting productivity and personalizing shopping experiences. SharkNinja (SN) also began implementing Agentforce and other Salesforce products to drive global growth. The company announced plans to expand its presence in Saudi Arabia and invest $500 million in Argentina over the next five years.
Analysts have shared varied perspectives ahead of the earnings report. Citi lowered its price target on Salesforce to $350 from $390, maintaining a Neutral rating. The firm cited mixed demand trends and heavy discounts to drive adoption, expecting revenue and bookings growth to remain constrained in the high-single-digits. TD Cowen reiterated a Buy rating with a $400 price target, highlighting Salesforce’s AI positioning with Agentforce but noting it will take time to impact financials. BMO Capital reduced its price target to $375 from $425, keeping an Outperform rating, but warned that initial FY26 guidance might disappoint investors due to the consumption-based nature of Agentforce revenues.
— news from TipRanks