Here’s what Wall Street experts are saying about Salesforce ahead of earnings

Salesforce (CRM) is scheduled to report results of its first fiscal quarter after the market close on Wednesday, May 28, with a conference call scheduled for 5:00 pm ET. What to watch for:

GUIDANCE: Along with its fourth quarter earnings report, Salesforce guided to FY26 adjusted earnings per share of $11.09-$11.17 on a revenue of $40.5B-$40.9B, which compared to analyst estimates of $11.21 and $41.36B, respectively, at the time of the report. Consensus for EPS has since dropped to $11.17, while estimates for revenue have fallen to $40.82B. The company also provided Q1 adjusted EPS guidance of $2.53-$2.55 on revenue of $9.71B-$9.76B. Consensus for earnings, which was at $2.62 at the time, has fallen to $2.55, and consensus for revenue, which was at $9.91B, has dropped to $9.75B.

PARTNERSHIPS, FEATURES: In February, Salesforce and Google (GOOGL) announced an expansion of their strategic partnership, delivering choice in the models and capabilities businesses use to build and deploy AI-powered agents. In March, Salesforce launched AgentExchange, a marketplace and community for Agentforce that is built into Salesforce, opening up new opportunities for partners, developers, and Agentblazers to participate in the rapidly expanding digital labor market. Additionally in March, the company announced that 1-800Accountant is using Agentforce to enhance its customer service support. Salesforce also announced Agentforce 2dx, the newest version of Agentforce, its digital labor platform for bringing autonomous AI agents into the flow of work, in March. The company and Singapore Airlines also announced in March that the Airline is incorporating Agentforce, Einstein in Service Cloud, and Data Cloud into its customer case management system.

CHIEF OPERATING, FINANCE OFFICER APPOINTMENT: In February, Salesforce announced that Robin Washington would become president and chief operating and financial officer. Washington previously spent decades at the forefront of financial and operational strategy at companies, including Gilead Sciences (GILD), Hyperion, and PeopleSoft. She has also been an active member of the Salesforce board since 2013, previously serving as Chair of the Audit and Finance Committee and as Lead Independent Director since 2022.

INFORMATICA ACQUISITION: On Tuesday, Salesforce and Informatica (INFA) announced they entered into an agreement for Salesforce to acquire Informatica for approximately $8N in equity value, net of Salesforce’s current investment in Informatica. Under the terms of the agreement, holders of Informatica’s Class A and Class B-1 common stock will receive $25 in cash per share. Under the terms of the agreement, Salesforce will acquire all outstanding shares of common stock of Informatica that it does not already own. The transaction has been approved by the boards of directors of both Salesforce and Informatica and is expected to close early in Salesforce’s fiscal year 2027, subject to the receipt of required regulatory clearances and satisfaction of other customary closing conditions. Stockholders holding in aggregate approximately 63% of the voting power of Informatica Class A and Class B-1 common stock have delivered a written consent approving the transaction. The transaction will be funded through a combination of cash on Salesforce’s balance sheet and new debt. Salesforce expects to achieve accretion on a non-GAAP operating margin, non-GAAP earnings per share, and free cash flow basis starting in the second year following the expected closing of the transaction and continuing thereafter, driven by substantial cost synergies and revenue uplift with a new comprehensive data portfolio. The transaction is not expected to disrupt Salesforce’s capital return program.

ANALYST VIEWS: Last week, Stifel said it recently caught up with four Salesforce partners and told investors that their commentary around fiscal Q1 was “slightly better than we had expected, with only one partner noting the quarter coming in below expectations.” The firm, which expects the pricing evolution overhang on Agentforce should begin to alleviate now that the company has announced a Flex Credit system, keeps a Buy rating and $375 price target on Salesforce ahead of the company’s fiscal Q1 report.

Meanwhile, Citi lowered the firm’s price target on Salesforce to $320 from $335 and kept a Neutral rating on the shares ahead of the report. The firm’s partner checks continued to suggest mixed signals on Salesforce demand. Even with the weaker U.S. dollar since February likely aiding as-reported results, Salesforce’s revenue growth will remain constrained in the high-single-digits near term, the analyst said.

Additionally on Tuesday, BMO Capital lowered the firm’s price target on Salesforce to $350 from $367 and kept an Outperform rating on the shares. April-quarter channel feedback has been mostly in line to very modestly better vs. the management’s plan, the analyst said. BMO added that it remains bullish on longer-term potential of Agentforce but also believes that investor patience will be required.