Salesforce Takes a Breather into Earnings as Analyst Trims Stock Target (NYSE: CRM)

Salesforce (NYSE: CRM), the global leader in cloud-based customer relationship management software, finds itself at a pivotal juncture as it continues to reshape its business through bold acquisitions and a sharpened focus on artificial intelligence (AI) and data management.

The company are set to report earnings today after the market closes, with analysts expecting Salesforce to come in with an earnings per share of $2.55, on revenue of $9.75 billion.

Salesforce comes into the latest print in a downward channel that has held firm since January, although the past month of trading does offer some comfort to CRM bulls. The stock has rallied more than 16% off April's low, yet heads into earnings on the back of a weekly decline of 3.33%, giving back some of the recent gains.

Looking back at the previous report for clues, and while the company exceeded earnings expectations with adjusted EPS of $2.78 (versus $2.60 expected), revenue of $9.99 billion fell short of analyst forecasts by $50 million. Sales grew 7.5% year-over-year, and adjusted EPS rose 21.4%, but forward guidance was below Wall Street’s estimates, contributing to a pullback in the stock price.

Despite these mixed signals, Salesforce’s momentum in AI and data cloud offerings remains robust. The company closed its fiscal year with $900 million in revenue from these segments, a 120% year-over-year increase, demonstrating its successful pivot toward next-generation enterprise solutions.

The most consequential recent development for Salesforce is its definitive agreement to acquire Informatica, a leading data management firm, in an $8 billion all-cash transaction. Salesforce will pay $25 per share for Informatica, a move designed to bolster its AI and data capabilities. By integrating Informatica’s advanced catalog and metadata technologies with its own Agentforce platform, Salesforce aims to deliver a more comprehensive, agent-ready data platform for enterprise customers.

The deal, expected to close early in Salesforce’s fiscal year 2027, has already received board approval and the consent of shareholders representing approximately 63% of Informatica’s voting power.

CEO Marc Benioff has positioned this acquisition as a critical step in Salesforce’s evolution, enabling the company to compete more aggressively in the rapidly expanding AI space. The transaction is widely seen as a response to the growing demand for trusted, scalable data solutions, a prerequisite for effective AI deployment in large organizations.

Analysts are currently mixed on the stock in recent updates. On May 27, UBS Group lowered its price target for Salesforce from $320 to $300 and shifted its rating to “neutral,” citing concerns about integration risks, acquisition costs, and broader market uncertainties.

After the announcement of the Informatica acquisition, analysts were quick to revise their price targets on CRM. Canacord lowered their price target on CRM from $400 to $350, keeping a “Buy” rating on the shares, whilst DA Davidson were much more cautious about the acquisition, and labelled the stock “Underperform” with a $200 PT.

While short-term volatility and analyst caution persist, the company’s strong financials and clear strategic direction position it well for long-term growth. Today's earnings could well provide pivotal in determining the next leg for holders. Near term, we are watching the $265 and $290 levels as the first lines of defense in either direction.