Salesforce (CRM) is set to post fourth-quarter results on Wednesday, after markets close.
Wall Street expects the cloud software giant to post EPS of $3.05 on revenue of $11.19 billion, implying a rise of 12% during the quarter.
Salesforce has been facing pressure as investors are looking for quick returns from AI investments by companies. The Mark Benioff-led company’s stock, like other software stocks, faced a broader retreat. Salesforce has lost over 30% so far this year, compared to the marginal loss in the broader S&P 500 Index.
However, analysts are mostly bullish, especially after the company, in December, raised its fiscal 2026 revenue and adjusted profit forecasts, signalling that its AI software Agentforce, which automates sales and customer service workflows, is showing growth.
“Our Agentforce and Data 360 products are the momentum drivers, hitting nearly $1.4 billion in ARR—an explosive 114% year-over-year gain,” Benioff said in a statement during the company’s third-quarter results.
Seeking Alpha analysts and Wall Street are bullish and rated the stock a Buy. In contrast, Seeking Alpha’s Quant ratings consider it a Hold.
“We expect to see solid results from Benioff & Co. despite the software storm that has been developing around CRM over the past year and has accelerated over the past few months with this “AI Ghost Trade” narrative,” said Wedbush analyst Dan Ives.
Seeking Alpha analyst David Desjardins said that “the growth of agentic AI is a key element behind my ‘strong buy’ rating. While market participants are worried about disruption, Salesforce is aggressively capitalizing on this massive opportunity.”
Over the last two years, Salesforce has beaten EPS estimates 88% of the time and has beaten revenue estimates 63% of the time.
Over the last three months, EPS estimates have seen 27 upward revisions, compared to nine downward revisions, while revenue estimates have been revised upwards 39 times versus no downward moves.