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What's Next: Salesforce's Earnings Preview
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What's Next: Salesforce's Earnings Preview
May 27, 2025 7:30 AM

Salesforce ( CRM ) is gearing up to announce its quarterly earnings on Wednesday, 2025-05-28. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Salesforce ( CRM ) will report an earnings per share (EPS) of $2.55.

The market awaits Salesforce's ( CRM ) announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Past Earnings Performance

The company's EPS beat by $0.17 in the last quarter, leading to a 4.04% drop in the share price on the following day.

Here's a look at Salesforce's ( CRM ) past performance and the resulting price change:

Quarter Q4 2025 Q3 2025 Q2 2025 Q1 2025
EPS Estimate 2.61 2.44 2.11 2.37
EPS Actual 2.78 2.41 2.56 2.44
Price Change % -4.0% 11.0% -1.0% -20.0%

Stock Performance

Shares of Salesforce ( CRM ) were trading at $273.13 as of May 26. Over the last 52-week period, shares are up 0.13%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Salesforce

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Salesforce ( CRM ).

Salesforce ( CRM ) has received a total of 28 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $339.36, the consensus suggests a potential 24.25% upside.

Analyzing Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Palantir Technologies, Intuit and SAP, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

Analysts currently favor an Neutral trajectory for Palantir Technologies, with an average 1-year price target of $101.5, suggesting a potential 62.84% downside.

Analysts currently favor an Outperform trajectory for Intuit, with an average 1-year price target of $769.21, suggesting a potential 181.63% upside.

Analysts currently favor an Outperform trajectory for SAP, with an average 1-year price target of $322.0, suggesting a potential 17.89% upside.

Analysis Summary for Peers

The peer analysis summary offers a detailed examination of key metrics for Palantir Technologies, Intuit and SAP, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Salesforce ( CRM ) Neutral 7.60% $7.78B 2.85%
Palantir Technologies Neutral 39.34% $710.88M 4.11%
Intuit Outperform 15.10% $6.56B 14.81%
SAP Outperform 12.09% $6.61B 3.91%

Key Takeaway:

Salesforce ( CRM ) ranks in the middle for revenue growth among its peers. It has the lowest gross profit margin. The return on equity of Salesforce ( CRM ) is also lower compared to its peers. Overall, Salesforce ( CRM ) is positioned in the lower tier when compared to its peers across these key metrics.

All You Need to Know About Salesforce

Salesforce ( CRM ) provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.

Salesforce: Delving into Financials

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Salesforce's ( CRM ) revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2025, the company achieved a revenue growth rate of approximately 7.6%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Salesforce's ( CRM ) financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 17.09%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Salesforce's ( CRM ) ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.85%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Salesforce's ( CRM ) ROA excels beyond industry benchmarks, reaching 1.76%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.19, Salesforce ( CRM ) adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Salesforce ( CRM ) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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