Key Stats for Salesforce Stock
- Price Change for $CRM stock: -7.5%
- Current Share Price: $241
- 52-Week High: $369
- $CRM Stock Price Target: $345
What Happened?
Salesforce (CRM) stock dropped over 7% despite reporting better-than-expected fiscal second-quarter earnings and revenue.
It reported adjusted earnings per share of $2.91, beating the consensus estimate of $2.78, while revenue of $10.24 billion topped the forecast of $10.14 billion. However, investors focused on the disappointing third-quarter guidance, which came in at the low end of expectations.
For the fiscal third quarter, management projected adjusted earnings per share of $2.84 to $2.86 on revenue of $10.24 billion to $10.29 billion.
While technically in line with analyst estimates of $2.85 per share on $10.29 billion in revenue, the guidance failed to provide the upside surprise investors were hoping for. The company maintained its full-year revenue outlook but raised earnings guidance slightly.
See analysts’ growth forecasts and price targets for CRM stock (It’s free!) >>>
What the Market Is Telling Us About CRM Stock
The sell-off in CRM stock reflects broader concerns about Salesforce’s ability to accelerate growth in an AI-driven market.
The SaaS giant has struggled with single-digit revenue growth since mid-2024 and is down 23% year-to-date, making it one of the worst performers in the Dow.
CFO Robin Washington acknowledged the challenges of selling marketing and commerce products, as well as slower growth in the company’s existing customer base.
Despite CEO Marc Benioff’s enthusiasm about the company’s “agentic enterprise” vision and over 6,000 paid Agentforce deals, investors remain skeptical about AI monetization timelines.
Benioff defended the company against criticism, saying, “There’s so much nonsense” on social media about SaaS disruption not being “grounded in any customer truth.”
Salesforce announced a $20 billion increase to its share buyback program, bringing the total authorization to $50 billion, signaling confidence in its long-term prospects.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
