Technology giant Salesforce Inc (NYSE:CRM) is likely to show growth in the company's AI initiatives when the company reports second-quarter financial results after market close Wednesday.
Here are the earnings estimates, what analysts are saying ahead of the report and key items to watch.
Earnings Estimates: Analysts expect Salesforce to report second-quarter revenue of $10.13 billion, up from $9.32 billion in last year's second quarter, according to data from Benzinga Pro.
The company beat analyst estimates for revenue in the first quarter and has beaten estimates in eight of the last 10 quarters overall.
Analysts expect Salesforce to report second-quarter earnings per share of $2.78, up from $2.56 in last year's second quarter.
The company beat analyst estimates for earnings per share in two straight quarters and nine of the last 10 quarters overall.
Guidance from the company calls for second-quarter revenue to be in a range of $10.11 billion to $10.16 billion. The company expects second-quarter earnings per share to be in a range of $1.80 to $1.82.
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What Experts Are Saying: Freedom Capital Markets Chief Market Strategist Jay Woods said there is one major question for Salesforce ahead of earnings.
"Is the software giant's AI business model generating the return on investment investors want to see or are other AI platforms starting to chip into their business?" Woods said in a weekly newsletter.
Woods said the earnings report and commentary could show if AI is going to help Salesforce grow in the AI space or whether AI will be "a detriment to their own growth."
DA Davidson analyst Gil Luria upgraded Salesforce shares from Underperform to Neutral with a $225 price target recently.
The analyst remains cautious on the stock, warning that the company's push into Agentforce is hurting its core cloud business segment.
Luria said unpredictability over Salesforce's costs to grow its AI platforms and unclear AI strategies make it harder for investors to know what to expect.
Here are other recent analyst ratings on Salesforce and their price targets:
- JMP Securities: Reiterated Market Outperform rating with $430 price target
- Morgan Stanley: Maintained Overweight rating, raised price target from $404 to $405
- Cantor Fitzgerald: Reiterated Overweight rating with $325 price target
- Oppenheimer: Maintained Outperform rating, raised price target from $315 to $370
- Bank of America Securities: Maintained Buy rating, lowered price target from $350 to $325
- UBS: Maintained Neutral rating, lowered price target from $300 to $260
- RBC Capital: Reiterated Sector Perform rating with $275 price target
Key Items to Watch: The latest earnings report comes after Salesforce announced plans to acquire AI automation platform company Regrello. Salesforce plans to integrate Regrello into its platforms, such as Agentforce and Slack, and automate manual workflows using AI.
Salesforce could share more details of the acquisition and what it means for future growth during the earnings call.
In the first quarter, Salesforce reported revenue up 8% year-over-year. Investors likely want to see double-digit growth given the company's higher spending in the AI sector.
Salesforce CEO Marc Benioff said the company has built "a deeply unified enterprise AI platform" after first-quarter results.
The company raised its full-year guidance for revenue and earnings per share after first-quarter results. Analysts and investors would welcome another strong quarter and raised guidance.
CRM Price Action: Salesforce stock was down 1.35% to $252.86 on Tuesday versus a 52-week trading range of $226.48 to $369.00. Salesforce stock is down 24% year-to-date in 2025.
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