Software giant Salesforce (CRM) is set to report its fiscal Q2 earnings after market close on Wednesday, September 3. Analysts expect CRM to report earnings of $2.78 in Q2, compared to $2.56 in the same quarter last year. Also, the company’s revenue for Q2 is expected to rise 9% year-over-year to $10.14 billion.
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It must be highlighted that Salesforce has beaten earnings estimates in nine of the last 10 quarters, thanks to its rising total performance obligations, which reflect strong renewal performance and customer commitment.
Key Analysts’ Expectations for Salesforce’s Q2 Report
Analysts are looking for more than just a beat in the company’s upcoming results. They want to see momentum, especially after the company raised full-year guidance last quarter. Also, the spotlight is on the progress of Agentforce, Salesforce’s AI-powered platform, and the company’s efforts to boost its adoption.
Cantor Fitzgerald’s Matthew VanVliet is bullish on Salesforce stock ahead of Q2 results with a $325 price target. He is focused on growth in Data Cloud, Agentforce, and Service Cloud, especially as the company gears up for Dreamforce in October. Overall, he expects marketing and commerce cloud offerings to continue to lag, but the sales cloud might show steady, mid-single-digit growth.
Meanwhile, Citi analyst Tyler Radke lowered the price target on CRM stock to $275 from $295 and kept a Hold rating. The Top analyst noted that partner feedback during Q2 points to weaker-than-expected demand, especially for Agentforce, as most deployments are still in early stages. For now, he expects only modest gains in Q2, with revenue growth likely to stay in the high-single-digit range.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.79% move in either direction.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 18 Buys and eight Holds assigned in the last three months. At $332.81, the average Salesforce stock price target implies a 31.62% upside potential.
