Jefferies has scheduled a conference call featuring a discussion with Mike Jortberg, the Senior Global Sales Director at Slalom. As a significant U.S. partner of Salesforce (CRM, Financial), this session is set for May 9 at 10 a.m. The call will be accessible via a webcast link.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 48 analysts, the average target price for Salesforce Inc (CRM, Financial) is $364.48 with a high estimate of $442.00 and a low estimate of $200.00. The average target implies an upside of 32.50% from the current price of $275.08. More detailed estimate data can be found on the Salesforce Inc (CRM) Forecast page.
Based on the consensus recommendation from 54 brokerage firms, Salesforce Inc's (CRM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Salesforce Inc (CRM, Financial) in one year is $291.53, suggesting a upside of 5.98% from the current price of $275.08. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Salesforce Inc (CRM) Summary page.
CRM Key Business Developments
Release Date: February 26, 2025
- Revenue: $10 billion for Q4, up 8% year over year; $37.9 billion for the full fiscal year, up 9% year over year.
- Operating Cash Flow: $13.1 billion for the full year, up 28% year over year.
- Non-GAAP Operating Margin: 33% for the full year, up 250 basis points year over year.
- GAAP Operating Margin: 19% for the full year, up 460 basis points year over year.
- Remaining Performance Obligation (RPO): $63.4 billion, up 11% year over year.
- Data Cloud and AI ARR: $900 million, growing 120% year over year.
- Agentforce Customers: Over 3,000 paying customers within 90 days of launch.
- Subscription and Support Revenue Growth: 9% year over year in constant currency for fiscal year '26.
- Non-GAAP EPS Guidance for FY26: $11.09 to $11.17.
- Free Cash Flow: $12.4 billion for the full year, up 31% year over year.
- Q1 Revenue Guidance: $9.71 billion to $9.76 billion, up 6% to 7% year over year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Salesforce Inc (CRM, Financial) reported its best quarter ever, with strong performance across key metrics such as revenue, margin, EPS, and cash flow.
- The company achieved a milestone of over $60 billion in Remaining Performance Obligation (RPO) and recorded the highest cash flow in its history.
- Salesforce Inc (CRM) introduced two major products, Data Cloud and Agentforce, which have become multibillion-dollar product lines, with Data Cloud and AI Annual Recurring Revenue (ARR) growing 120% year over year.
- The company closed its fiscal year with $10 billion in revenue for the first time, marking an 8% year-over-year increase.
- Salesforce Inc (CRM) continues to see strong growth in its Data Cloud, which surpassed 50 trillion records, doubling year over year, and is a critical component of its AI and Agentforce offerings.
Negative Points
- Salesforce Inc (CRM) faces foreign exchange headwinds, which have impacted its revenue growth, with a $300 million FX headwind affecting its CRPO growth.
- The company's professional services business is expected to be a headwind to growth in fiscal year '26 as it leans more on its partner ecosystem.
- There is a modest contribution expected from Agentforce to revenue in fiscal year '26, with more meaningful contributions anticipated in fiscal year '27.
- Salesforce Inc (CRM) is experiencing slower growth in its exploration base and weakness in marketing and commerce, which could impact overall growth.
- The company is undergoing a management transition, with the departure of key executives Brian Millham and Amy Weaver, which may pose challenges in maintaining continuity and strategic direction.
