Salesforce Set to Announce Strong Earnings Amid Market Optimism
San Francisco’s Salesforce, Inc. (CRM) is gearing up for an important earnings announcement on February 26, 2025. The company, known for its robust customer relationship management software, holds a market cap of $332.2 billion and supports businesses in managing sales information efficiently. Salesforce leverages advanced analytics, AI, and integration tools to help firms enhance customer interactions and develop personalized workflows.
Profit Predictions and Historical Success
Analysts anticipate that CRM will report a profit of $1.95 per share, a notable increase of 9.6% from the $1.78 per share from the same quarter last year. Salesforce has exceeded Wall Street’s earnings per share (EPS) estimates consistently over the past four quarters, including a 4.5% margin over the consensus estimate in the last quarter.
Future Earnings Outlook
Looking ahead, projections for fiscal 2025 suggest that CRM will achieve an EPS of $7.48, marking an impressive 23.4% growth compared to $6.06 in fiscal 2024.
Stock Performance Compared to Industry
Over the past 52 weeks, CRM stock has outperformed the S&P 500 index, which saw a gain of 22.9%, with CRM shares rising by 24%. It has also surpassed the Technology Select Sector SPDR Fund’s (XLK) growth of 12.8% during the same period.
Driving Factors Behind CRM’s Growth
This success can largely be attributed to CRM’s subscription-based model, which ensures a reliable revenue stream. Key acquisitions, including Slack, Tableau, and MuleSoft, have expanded its services and created new cross-selling opportunities. Furthermore, innovations such as Agentforce and Retail Cloud with Modern POS have boosted customer engagement, while partnerships with NVIDIA Corporation (NVDA) enhance its technology and productivity.
The stock experienced a surge of nearly 11% after the Q3 earnings release on December 3, driven by unexpectedly high revenue of $9.4 billion. Significant growth in sectors such as Sales Cloud and Service supported this revenue increase, even with a slight EPS miss at $2.41. Salesforce also elevated its full-year fiscal 2025 revenue guidance to between $37.8 billion and $38 billion, further energizing investor confidence.
Analyst Ratings and Current Stock Position
Currently, the consensus among analysts is overwhelmingly positive, with a “Strong Buy” rating for CRM stock. Of the 45 analysts covering the stock, 33 recommend a “Strong Buy,” three suggest a “Moderate Buy,” seven rate it as a “Hold,” and two see it as a “Strong Sell.” As of now, CRM is trading below the average analyst price target of $397.81.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
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