Salesforce (NYSE:CRM) Issues FY 2027 Earnings Guidance

Salesforce (NYSE:CRM) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 14.060-14.120 for the period, compared to the consensus estimate of 12.520. The company issued revenue guidance of $45.9 billion-$46.2 billion, compared to the consensus revenue estimate of $46.1 billion. Salesforce also updated its Q2 2027 guidance to 3.250-3.270 EPS.

Salesforce Stock Down 0.7%

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

Salesforce (NYSE:CRM) last issued its earnings results on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.13 by $0.75. Salesforce had a return on equity of 16.70% and a net margin of 18.73%.The business had revenue of $11.13 billion during the quarter, compared to the consensus estimate of $11.05 billion. During the same period last year, the company earned $2.58 EPS. The company’s revenue for the quarter was up 13.3% on a year-over-year basis. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. As a group, equities analysts forecast that Salesforce will post 9.72 EPS for the current year.

Salesforce Announces Dividend

The company also recently announced 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. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $1.76 dividend on an annualized basis and a yield of 1.0%. Salesforce’s payout ratio is 22.54%.

Salesforce declared that its Board of Directors 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 shares through open market purchases. Shares buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CRM. Mizuho reduced their target price on shares of Salesforce from $280.00 to $265.00 and set an “outperform” rating on the stock in a research note on Thursday, February 26th. Wedbush reaffirmed an “outperform” rating and set a $325.00 target price on shares of Salesforce in a research note on Thursday. Northland Securities reduced their target price on shares of Salesforce from $267.00 to $229.00 and set a “market perform” rating on the stock in a research note on Tuesday, March 10th. Truist Financial set a $280.00 target price on shares of Salesforce in a research note on Thursday, February 26th. Finally, Canaccord Genuity Group reduced their target price on shares of Salesforce from $250.00 to $225.00 and set a “buy” rating on the stock in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $259.47.

Insider Transactions at Salesforce

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

More Salesforce News

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

Institutional Investors Weigh In On Salesforce

Several large investors have recently added to or reduced their stakes in the business. Compound Planning Inc. increased its stake in Salesforce by 0.8% during the 4th quarter. Compound Planning Inc. now owns 17,781 shares of the CRM provider’s stock worth $4,710,000 after buying an additional 135 shares during the period. Birchwood Financial Partners Inc. purchased a new stake in Salesforce during the 4th quarter worth approximately $28,000. Corient Private Wealth LLC increased its stake in Salesforce by 84.9% during the 4th quarter. Corient Private Wealth LLC now owns 773,553 shares of the CRM provider’s stock worth $204,922,000 after buying an additional 355,108 shares during the period. Strive Financial Group LLC purchased a new stake in Salesforce during the 4th quarter worth approximately $158,000. Finally, Blue Sparrow LLC DE purchased a new stake in Salesforce during the 4th quarter worth approximately $18,862,000. 80.43% of the stock is owned by hedge funds and other institutional investors.

About Salesforce

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.