Salesforce Prepares for Earnings Report Amid Mixed Market Performance

Salesforce, Inc. (CRM), with a market capitalization of $255.4 billion, is a leader in customer relationship management (CRM) technology, helping connect businesses with their customers. Based in San Francisco, California, the company provides global sales, service, and subscription solutions, while also supporting third-party development.

Q1 2026 Earnings Expectations

Salesforce is set to release its Q1 2026 earnings on Wednesday, June 4. Analysts project the company to report adjusted earnings of $1.87 per share, a slight decline of 1.6% from $1.90 per share recorded in the same quarter last year. However, CRM has managed to surpass Wall Street’s bottom-line estimates in each of the last four quarters.

Fiscal Year Forecasts

Looking ahead to the full fiscal 2025, analysts expect Salesforce to report an adjusted EPS of $8.41, reflecting a growth of 6.6% compared to $7.89 in fiscal 2024. Furthermore, analysts forecast a continued growth of 12.7% in fiscal 2026, predicting earnings of $9.48 per share.

Stock Performance Insights

Over the past 52 weeks, CRM stock has decreased by 2.9%, underperforming the S&P 500 Index’s ($SPX) gain of 8.7% and the Technology Select Sector SPDR Fund’s (XLK) 4.2% return in the same timeframe.

Following the mixed results of its Q4 2025 earnings on February 26, Salesforce’s stock fell by 4%. Revenue for the quarter increased by 7.6% year-over-year to $10 billion, with subscription and support revenue rising 8% year-over-year to $9.5 billion. Yet, this revenue fell short of analyst expectations. Adjusted earnings increased by 21.4% year-over-year to $2.78 per share.

Investor sentiment took a hit, as the company’s fiscal 2026 guidance did not meet expectations. Projected Q1 revenue is estimated between $9.71 billion and $9.76 billion, and adjusted EPS is forecasted to be between $2.53 and $2.55.

Analysts Maintain Optimistic Outlook

Despite recent challenges, analysts maintain a generally positive outlook on CRM stock. The consensus rating is a “Strong Buy,” with 34 out of 46 analysts recommending “Strong Buys,” while three suggest “Moderate Buys,” seven endorse “Holds,” and two indicate “Strong Sells.” The average price target stands at $361.86, suggesting a potential upside of 35.1% from current pricing.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data herein are for informational purposes. For additional details, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.