Salesforce Inc. (NYSE:CRM – Get Free Report)’s stock price was up 22.6% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $254.48 and last traded at $252.1480. 55,342,689 shares were traded during trading, an increase of 298% from the average session volume of 13,904,954 shares. The stock had previously closed at $205.62.
The CRM provider reported $5.90 earnings per share for the quarter, beating analysts’ consensus estimates of $3.27 by $2.63. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The company had revenue of $11.35 billion for the quarter, compared to analysts’ expectations of $11.33 billion. During the same quarter in the previous year, the company posted $2.91 earnings per share. The business’s revenue for the quarter was up 10.8% compared to the same quarter last year. Salesforce has set its FY 2027 guidance at 16.670-16.710 EPS and its Q3 2027 guidance at 3.420-3.440 EPS.
Salesforce News Summary
Here are the key news stories impacting Salesforce this week:
- Positive Sentiment:Results exceeded expectations: Salesforce reported adjusted EPS of $5.90 versus the $3.27 consensus estimate, while revenue rose 10.8% year over year to $11.35 billion, broadly ahead of forecasts. Profit was also helped by a roughly $2.6 billion gain on strategic investments, including the company’s Anthropic stake. Salesforce stock jumps on AI growth and Anthropic investment gain
- Positive Sentiment:Raised guidance supports the rally: Salesforce lifted fiscal 2027 revenue guidance to $46.1 billion-$46.4 billion and EPS guidance to $16.67-$16.71. Third-quarter EPS guidance of $3.42-$3.44 also topped the $3.16 analyst estimate, signaling confidence in continued growth. Salesforce raises annual revenue forecasts on AI product momentum
- Positive Sentiment:AI momentum is easing disruption fears: Current remaining performance obligations accelerated 14% in constant currency, while Agentforce and Data 360 annual recurring revenue approached $3.9 billion. Management said AI usage has surged, strengthening the argument that AI agents can expand Salesforce’s platform rather than replace it. Salesforce Q2 results and the SaaSpocalypse bear case
- Positive Sentiment:Anthropic partnership adds strategic momentum: The new “Claudeforce” integration brings Anthropic’s Claude into Salesforce workflows, data and Agentforce, giving investors a clearer path to monetize enterprise AI. Salesforce and Anthropic announce Claudeforce
- Neutral Sentiment:Analyst reaction is favorable but not unanimous: JPMorgan and Mizuho raised their targets to $265 with bullish ratings, while Truist set $300 and Needham maintained a $400 target. However, UBS, Morgan Stanley and Wells Fargo kept neutral-equivalent ratings with targets below the current trading level; Bernstein raised its target to $195 but retained an underperform rating.
- Negative Sentiment:Valuation and platform risks remain: Some analysts argue the rally may be a temporary rebound after a prolonged decline. Salesforce is again valued above its one-year average, and Anthropic’s control of the AI orchestration layer could limit Salesforce’s long-term strategic leverage. Salesforce dead cat bounce analysis
Analyst Upgrades and Downgrades
- The Pre-IPO Playbook: How to Cash in on Anthropic Before the Bell
CRM has been the topic of a number of recent analyst reports. Susquehanna began coverage on shares of Salesforce in a research note on Wednesday, July 1st. They set a “neutral” rating on the stock. Jefferies Financial Group increased their target price on shares of Salesforce from $250.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday. Daiwa Securities Group lowered their target price on shares of Salesforce from $295.00 to $280.00 and set a “buy” rating on the stock in a research note on Tuesday, June 2nd. Citizens Jmp restated a “market outperform” rating and set a $315.00 price target on shares of Salesforce in a research report on Tuesday. Finally, Oppenheimer reiterated an “outperform” rating and issued a $275.00 price objective (up from $250.00) on shares of Salesforce in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, sixteen have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $261.15.
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