Salesforce (NYSE:CRM) Posts Quarterly Earnings Results, Beats Estimates By $0.75 EPS

Salesforce (NYSE:CRM) issued its earnings results on Wednesday. The CRM provider reported $3.88 earnings per share for the quarter, topping the consensus estimate of $3.13 by $0.75, FiscalAI reports. The business had revenue of $11.13 billion for the quarter, compared to analysts’ expectations of $11.05 billion. Salesforce had a return on equity of 16.70% and a net margin of 18.73%.The business’s revenue for the quarter was up 13.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.58 EPS. Salesforce updated its FY 2027 guidance to 14.060-14.120 EPS and its Q2 2027 guidance to 3.250-3.270 EPS.

Here are the key takeaways from Salesforce’s conference call:

• Salesforce posted a strong Q1 with revenue of $11.13 billion, up 13% year over year, while non-GAAP operating margin expanded to 34.8% and operating cash flow reached $6.7 billion.
• Agentforce momentum remained a major growth driver, with ARR surpassing $1 billion, 28.6 trillion tokens processed, and 3.8 billion agentic work units generated in the quarter.
• Customer adoption is broadening across key products, highlighted by 98 deals over $1 million in new ACV and more than 50% of Agentforce and Data 360 bookings coming from existing customers expanding usage.
• Management raised FY2027 revenue guidance to $45.9 billion-$46.2 billion and expects second-half organic revenue reacceleration, while noting ongoing pressure in Marketing, Commerce, and Tableau.
• Slack and headless access are becoming strategic growth levers, with Slack nearly half of million-plus wins, Slack AWUs up nearly 350% quarter over quarter, and Headless 360 positioned to expand Salesforce usage into more workflows and surfaces.

Salesforce Stock Down 0.7%

NYSE:CRM opened at $176.30 on Friday. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.18. The stock’s fifty day moving average is $180.84 and its two-hundred day moving average is $210.72. Salesforce has a 52 week low of $163.52 and a 52 week high of $276.80. The stock has a market capitalization of $144.26 billion, a price-to-earnings ratio of 20.41, a price-to-earnings-growth ratio of 1.23 and a beta of 1.14.

Salesforce Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be paid a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, June 11th. Salesforce’s dividend payout ratio is 22.54%.

Salesforce News Summary

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce topped Q1 earnings and revenue estimates, and management raised full-year profit guidance while saying Agentforce annualized revenue surpassed $1 billion. Reuters article
• Positive Sentiment: The company announced a $25 billion accelerated share repurchase, which should support EPS and signals confidence in cash generation. Seeking Alpha article
• Positive Sentiment: Salesforce expanded its Agentforce Health partnership with CVS Health, highlighting additional real-world adoption of its AI products. PR Newswire article
• Neutral Sentiment: Salesforce declared a quarterly dividend of $0.44 per share, a new shareholder-return measure, but the 1.0% yield is modest and unlikely to be a major catalyst. Business Wire article
• Negative Sentiment: Several analysts cut price targets after the report, citing concern that Salesforce’s AI narrative has not fully offset growth and margin worries. Benzinga article
• Negative Sentiment: Bears argue the company still faces an “AI problem,” with investors questioning whether AI agents can defend Salesforce’s core revenue model as competition intensifies. TheStreet article

Insiders Place Their Bets

In other news, Director David Blair Kirk purchased 2,570 shares of the firm’s stock in a transaction on Wednesday, March 18th. The shares were bought at an average cost of $194.62 per share, for a total transaction of $500,173.40. Following the completion of the purchase, the director directly owned 13,689 shares of the company’s stock, valued at approximately $2,664,153.18. This trade represents a 23.11% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Laura Alber purchased 2,571 shares of the firm’s stock in a transaction on Thursday, March 19th. The shares were purchased at an average price of $194.58 per share, for a total transaction of $500,265.18. Following the completion of the purchase, the director directly owned 9,530 shares of the company’s stock, valued at $1,854,347.40. This represents a 36.94% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 3.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Gilpin Wealth Management LLC acquired a new position in shares of Salesforce in the fourth quarter worth $26,000. Texas Capital Bancshares Inc TX acquired a new stake in shares of Salesforce in the third quarter valued at $28,000. Swiss RE Ltd. acquired a new stake in shares of Salesforce in the fourth quarter valued at $28,000. Birchwood Financial Partners Inc. acquired a new stake in shares of Salesforce in the fourth quarter valued at $28,000. Finally, Measured Wealth Private Client Group LLC acquired a new stake in shares of Salesforce in the third quarter valued at $39,000. 80.43% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

CRM has been the topic of several recent research reports. Canaccord Genuity Group lowered their target price on Salesforce from $250.00 to $225.00 and set a “buy” rating on the stock in a report on Thursday. Cantor Fitzgerald restated an “overweight” rating and set a $250.00 target price on shares of Salesforce in a report on Thursday. BMO Capital Markets cut their price target on shares of Salesforce from $225.00 to $215.00 and set an “outperform” rating for the company in a report on Thursday. Weiss Ratings cut Salesforce from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, May 20th. Finally, JPMorgan Chase & Co. decreased their price objective on Salesforce from $365.00 to $320.00 and set an “overweight” rating on the stock in a report on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $259.47.

Salesforce declared that its board has approved a share repurchase program on Monday, March 16th that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the CRM provider to purchase up to 14.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Salesforce Company Profile

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.