Software giant Salesforce (CRM) is scheduled to announce its results for the first quarter of Fiscal 2027 after the market closes on Wednesday, May 27. CRM stock has declined 32% so far this year because investors are concerned about slowing growth and weaker demand in the enterprise software market. They are also worried that generative AI startups could put pressure on Salesforce’s traditional subscription software business. According to TipRanks’ Options Tool, options traders expect about an 8.7% move in either direction in Salesforce stock in reaction to Q1 FY27 earnings. This implied move is higher than CRM stock’s average post-earnings move (in absolute terms) of 3.96% over the past four quarters.
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Wall Street analysts anticipate that the company will report earnings of $3.13 per share, reflecting a 21% year-over-year increase. Revenues are expected to rise by 12% from the same quarter last year, reaching $11.05 billion, according to data from the TipRanks Forecast page.
Investors will closely monitor management’s commentary on the adoption of its new autonomous AI agents (Agentforce), enterprise spending patterns, and whether the company can maintain its double-digit revenue growth trajectory.
Analysts’ Views Ahead of CRM’s Q1 Earnings
Heading into Q1 FY26 earnings, TD Cowen analyst Derrick Wood reiterated a Buy rating and kept his $250 price target on the stock. The analyst said recent channel checks were mixed across products and customer groups, although demand for Data Cloud remained strong and adoption of Agentforce continued to improve.
Wood expects Salesforce to deliver in-line results and guidance, noting that Agentforce may need more time before it meaningfully contributes to growth. Still, he expects growth to improve in the second half of the year and maintains his bullish view on the stock.
Meanwhile, Bank of America analyst Tal Liani reinstated coverage on Salesforce with an Underperform rating and a $160 price target, saying the company may be entering a slower-growth phase as AI changes the software industry. Liani said Salesforce is shifting from a high-growth company into a more mature cash-generating business, with revenue growth expected to slow to around 10% annually going forward.
Liani said concerns remain around slower customer additions, weaker upselling trends, and limited monetization from Agentforce. While Agentforce has reached 23,000 customers and $800 million in annual recurring revenue, he noted that only about 9% to 10% of Salesforce’s customer base is using the product. He also warned that AI automation could reduce the number of paid software seats over time, putting pressure on Salesforce’s traditional subscription model.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 27 Buys, eight Holds, and two Sells assigned in the last three months. At $255.42, the average Salesforce stock price target implies a 41.85% upside potential.
