May 30 - Shares of Salesforce (CRM, Financial) slumped about 3.3% on Thursday despite topping fiscal first-quarter estimates and lifting its full-year outlook on AI tailwinds.
The customer-relationship-management software maker reported adjusted EPS of $2.58, beating the $2.54 consensus, and revenue of $9.83 billion, up 8% year-on-year and above forecasts of $9.75 billion. For fiscal 2025, it now sees adjusted EPS of $11.27 to $11.33 and revenue of $41.0 billion to $41.3 billion, up from prior ranges of $11.09 to $11.17 and $40.5 billion to $40.9 billion.
A day earlier, Salesforce said it would acquire data management firm Informatica for $8 billion, its largest deal since Slack, to bolster its AI and data-stack offerings. RBC Capital Markets downgraded the stock to “sector perform” from “outperform,” citing execution risks and possible distractions from its core business.
Analysts noted a slight miss on remaining performance obligations growth, 30 basis points below expectations, and a modest operating-margin shortfall after several quarters of beats. Still, broad strength in AI-driven products underpins management's confidence in sustaining growth and margin expansion.
Is CRM a Buy Now?
Based on the one year price targets offered by 48 analysts, the average target price for Salesforce Inc is $362.12 with a high estimate of $442.00 and a low estimate of $225.00. The average target implies a upside of +35.67% from the current price of $266.92.
Based on GuruFocus estimates, the estimated GF Value for Salesforce Inc in one year is $291.64, suggesting a upside of +9.26% from the current price of $266.92.
