Salesforce Set to Report Q1 Fiscal 2026 Earnings Soon

Salesforce, Inc. (CRM) will report its first-quarter fiscal 2026 results on Wednesday after market close. This article reviews Salesforce’s projected earnings, long-term growth, and stock trading strategies following the earnings report.

Salesforce’s Q1 Earnings Forecast

Salesforce anticipates first-quarter revenues of $9.74 billion, reflecting a 6.6% increase compared to the previous year. Earnings per share (EPS) are expected to reach $2.54, indicating a 4.1% year-over-year growth.

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Over the past four quarters, Salesforce has delivered an average positive earnings surprise of 4.4%, suggesting it may achieve its earnings goals for this quarter.

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The introduction of Salesforce’s artificial intelligence (AI) platform, Agentforce, is poised to enhance earnings in the current quarter. This platform enables customers to utilize AI agents for customer service and technical tasks.

Agentforce, first launched in September 2024, was updated to Agentforce 2.0 in December 2024 to further improve productivity.

Factors Driving Salesforce’s Long-Term Growth

Salesforce’s positive first-quarter expectations may help its stock price, although a recent acquisition of Informatica Inc. (INFA) is already impactful.

As part of an all-cash deal, Salesforce will acquire Informatica for $8 billion, down from the previously expected mid-$30s per share. The new acquisition price is set at $25 per share.

This acquisition aims to bolster Salesforce’s AI strategy and is expected to close in the next fiscal year. By integrating Informatica, Salesforce is likely to strengthen its data framework, facilitating notable growth.

Furthermore, the global Customer Relationship Management (CRM) market, where Salesforce is a leader, is projected to grow at a 14.6% CAGR from 2025 to 2030, according to Grand View Research. As a result, Salesforce expects fiscal 2026 revenues to grow 7% to 8%, totaling between $40.5 billion and $40.9 billion, with adjusted EPS following a similar trend.

Stock Trading Strategies After Q1 Earnings

Given the anticipated boost from Agentforce, the Informatica acquisition, and Salesforce’s market position, current investors may choose to hold their Salesforce stock. The company is also well-funded, providing leverage for debt repayment and strategic investments.

However, stock prices may face volatility due to market saturation, competition from cloud providers like Microsoft Corporation (MSFT) and Oracle Corporation (ORCL), along with reduced IT spending amid high interest rates and inflation. Therefore, new investors should exercise caution regarding Salesforce stock until these challenges are addressed.

Currently, Salesforce’s stock holds a Zacks Rank #3 (Hold). You can view the full list of today’s Zacks Rank #1 (Strong Buy) stocks.

Disclaimer

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