Key Stats for Salesforce Stock
- 52-Week Range: $164 to $277
- Current Price: $189
- Street Mean Target: $255
- Street High Target: $475
- Analyst consensus: 32 Buy, 7 Outperform, 10 Hold, 2 Underperform
- TIKR Model Target (Jan. 2031): $328
Salesforce Stock Beats EPS by 24% in Q1 While the Market Focuses on Q2 Revenue Guide
Salesforce stock (CRM) delivered one of the largest EPS beats in its recent history in Q1 FY2027, reporting adjusted earnings of $3.88 per share against a consensus estimate of $3.12, a 24% beat, even as a Q2 revenue outlook that came in slightly below Wall Street’s expectations sent shares lower in initial after-hours trading.
Salesforce is the world’s largest CRM software company, providing cloud-based sales, service, marketing, and platform tools to more than 150,000 enterprises globally across every major industry.
The $11.13 billion in Q1 revenue grew 13% year-over-year, topping the $11.05 billion consensus, with subscription and support revenue growing 14%.
The company’s AI agent platform, Agentforce, crossed $1 billion in annual recurring revenue during the quarter, and combined with Data 360 and Informatica Cloud, Salesforce now carries around $3.4 billion in total AI and data ARR.
CEO Marc Benioff told analysts on the Q1 earnings call that the company had processed 28.6 trillion tokens, up 152% quarter-over-quarter, which converted into 3.8 billion agentic work units for customers, up 111% quarter-over-quarter.
The company also completed the initial delivery of its largest-ever $25 billion accelerated share repurchase, which reduced the Q1 diluted share count by 103 million shares, a 10% year-over-year reduction, and increased Q1 non-GAAP EPS by $0.23 per share.
Salesforce raised the midpoint of its FY2027 revenue guidance to $45.9 billion to $46.2 billion and reiterated its non-GAAP operating margin guidance of 34.3%.
Q2 revenue guidance of $11.27 billion to $11.35 billion came in below the $11.36 billion street consensus, and management cited ongoing softness in Marketing Cloud, Commerce, and Tableau as partial offsets to strength in Agentforce, Slack, and Data 360.
At the Jefferies Software Conference the day after earnings, EVP Bill Patterson said the company expects “first half net new AOV growth to outpace AOV growth,” which management believes will drive an organic revenue reacceleration in the second half of FY2027.
Salesforce also acquired Contentful, a composable content platform used by more than 4,800 brands, with the deal expected to close in fiscal Q3 2027, adding a native headless content layer to Customer 360.
On June 5, Salesforce announced a multi-tournament partnership with FIFA as an Official Tournament Supporter for both the 2026 World Cup and the 2027 Women’s World Cup, deploying Slack, Agentforce, and Salesforce platform tools across all 16 host cities.
Wall Street Stays Broadly Constructive on CRM Despite Target Cuts After Mild Q2 Guide Miss
Thirty-two analysts rate Salesforce stock a Buy, seven rate it Outperform, ten rate it Hold, and two rate it Underperform, leaving a strong majority constructive on the name even after a wave of target reductions following Q1.
The street mean target sits at around $255, implying roughly 35% upside from the current price of around $189, and the street high target stands at $475.
Wall Street’s conviction rests largely on the EPS trajectory: consensus now projects normalized EPS of around $3.27 in Q2 FY2027, climbing to around $14.09 for the full fiscal year, well above the $13.20 consensus that existed before management raised guidance.
The Q1 actual of $3.88 exceeded the $3.12 consensus by a margin not seen in recent quarters, and analysts note the ASR alone added $0.23 to Q1 non-GAAP EPS, a compounding effect that will benefit the back half of the fiscal year as the share count remains reduced.
The forward EPS growth case for Salesforce stock is increasingly a buyback-and-margin story layered on top of an AI monetization ramp: the company has returned $27.5 billion to shareholders in a single quarter, 50% of its entire $50 billion repurchase authorization, and management reiterated a 34.3% non-GAAP operating margin target for the full year.
On the other side of the debate, BofA reinstated Salesforce with an Underperform, arguing the business faces “a structural shift that permanently impairs Salesforce’s business model,” a position shared by a small minority of the coverage universe.
Bears point to the Q2 guide miss, slowing organic subscription revenue growth (7.7% in constant currency ex-Informatica), and the fact that Agentforce ARR at $1 billion still represents a small fraction of the company’s $46 billion annual revenue run rate.
The critical tension the street is watching: whether Agentforce, Headless 360, and Slack can accelerate net new AOV in H2 fast enough to deliver on the organic revenue reacceleration management committed to over a year ago.
Is Salesforce Stock Undervalued in 2026? TIKR’s $328 Base Case Says the Discount Is Real
TIKR’s mid-case model values Salesforce stock at approximately $328 by January 2031, implying around 73% total return from the current price of around $189, or roughly 13% annualized over approximately 5 years.
TIKR’s base case assumes a revenue CAGR of around 7% and net income margins of around 29%, a scenario consistent with management’s FY2030 Rule of 50 framework targeting $63 billion or more in revenue alongside expanding operating profitability.
That framework is grounded in three compounding engines that are already in motion: Agentforce consumption monetization via Flex Credits, Slack becoming the agentic work surface for a growing share of enterprise knowledge workers, and Headless 360 opening surfaces Salesforce has never previously monetized.
The one tension running through TIKR’s base case is whether the H2 organic revenue reacceleration management has guided materializes on schedule: if Agentforce net new AOV growth stalls or Tableau and Marketing Cloud drag longer than expected, the revenue CAGR assumptions compress.
If AI monetization underperforms and revenue growth settles around 7% with margins near 27%, TIKR’s low case points to a stock price of approximately $314, still implying around 66% total return from the current price, with an annualized IRR of around 6%.
If Agentforce, Headless 360, and Slack drive revenue closer to an 8% CAGR with margins expanding toward 30%, TIKR’s high case projects a stock price of approximately $507, implying around 168% total return and an annualized IRR of roughly 12%.
Is Salesforce Stock a Buy Right Now?
The TIKR mid-case model values CRM at approximately $328, implying roughly 73% total return from the current price of around $189 at around 13% annualized over approximately 5 years.
Thirty-two of 53 covering analysts rate Salesforce stock a Buy or Outperform, with a mean target near $255. The investment case rests on Agentforce ARR crossing $1 billion, a $25 billion ASR that cut diluted share count 10% year-over-year, and management’s commitment to organic revenue reacceleration in H2 FY2027.
Should You Invest in Salesforce, Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up Salesforce, Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track Salesforce, Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Access Professional Tools to Analyze CRM stock on TIKR for Free →
#Adessonews seleziona nella rete articoli di particolare interesse.
Se vuoi leggere l’articolo completo clicca sul seguente link
Gian Estrada
Source link
