Salesforce Prepares for Earnings with Strong Growth Signals
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Strong Earnings Outlook: Salesforce is guiding for first-quarter fiscal 2027 revenue between $11.03 billion and $11.08 billion, reflecting a 12.5% year-over-year increase, indicating robust growth potential in AI that could further boost market confidence.
- AI-Driven Growth: The company's AI portfolio generated approximately $2.9 billion in annualized recurring revenue by the end of fiscal 2026, more than tripling year-over-year, demonstrating successful market penetration within its existing customer base.
- Improved Profitability: Salesforce's non-GAAP operating margin expanded to 34.2% in Q4, up 110 basis points year-over-year, showcasing the effectiveness of cost restructuring efforts that are expected to drive future profit growth directly.
- Increased Shareholder Returns: The company returned over $14 billion to shareholders in fiscal 2026 through buybacks and a raised dividend, with the board approving a 5.8% increase to $0.44 per share, further enhancing investor confidence.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 176.170
Low
223.00
Averages
326.40
High
405.00
Current: 176.170
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a customer relationship management (CRM) technology company. Its artificial intelligence (AI) powered Agentforce 360 Platform offers sales, service, marketing, commerce, collaboration, data management, integration, analytics, and information technology (IT) service solutions. It enables customers to build and deploy digital labor for employees and customers, leveraging autonomous AI agents across business functions. Its service offerings include Agentforce Sales, Agentforce Service, Agentforce 360 Platform, Slack and Others. The Agentforce Sales provides sales capabilities and tools built for organizations across prospecting, sales engagement, team collaboration, sales analytics and AI, sales programs, sales performance, partner management, and revenue and orders. The Agentforce Service provides field service solutions that enable companies to connect service agents, dispatchers and mobile employees through platform to schedule, dispatch and manage jobs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Payment Schedule: The dividend is payable on July 2, with a record date of June 11 and an ex-dividend date also set for June 11, ensuring shareholders receive their returns in a timely manner.
- Revenue Guidance Increase: Salesforce has raised its fiscal year 2027 revenue guidance to between $45.9 billion and $46.2 billion, reflecting the company's confidence in future growth prospects, which could drive stock price appreciation.
- Share Repurchase Program: The company has also launched a $25 billion accelerated share repurchase program aimed at enhancing shareholder value by reducing the number of shares outstanding, thereby increasing earnings per share.
See More
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- Strong Stock Market Performance: Despite rising geopolitical tensions, both the S&P 500 and Nasdaq Composite closed at record highs, primarily driven by a surge in AI-related stocks, indicating strong market confidence in the technology sector.
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See More
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- Record Date for Shareholders: The record date for this dividend is set for June 11, 2026, ensuring that investors holding shares before this date will receive the dividend, which may encourage long-term investment.
- Growth Strategy: Salesforce aids organizations of all sizes in becoming agentic enterprises by integrating humans, agents, apps, and data on a unified platform, underscoring its leadership position in the market.
- Strengthening Investor Relations: The announcement of this dividend not only boosts the company's appeal among investors but may also attract more institutional investors, thereby enhancing the company's market performance.
See More
