Salesforce checks show ‘improved data’ going into earnings: Barclays

Recent checks into Salesforce (NYSE:CRM) ahead of next month’s earnings report showed “improving” data, investment firm Barclays said.

“Our [value-added-reseller] checks indicate improved data points around Q3 (performance to plan, discounting, and deal sizes), and a stronger than normal outlook for Q4,” analyst Raimo Lenschow wrote in a note to clients. “To us, this magnifies the potential for outperformance in Q3, and we see upside of 1-2% for revenue and a beat to [current remaining performance obligations] that could suggest more stable underlying growth q/q than the 8-9% currently modeled in consensus.”

Lenschow also noted that the current remaining performance obligations guidance will be a “closely watched metric in the quarter,” due in large part to bookings for Salesforce’s Agentforce AI product.

Salesforce is slated to report fiscal third-quarter results after the close of trading on December 3. A consensus of analysts expect the company to earn $2.45 per share on $9.35B in revenue.