Cantor Fitzgerald has commenced coverage on Salesforce (CRM, Financial) with an Overweight rating, aiming for a target price of $325. Despite experiencing a deceleration in growth, Salesforce is considered one of the top-quality companies within Cantor's coverage universe. The analyst highlights that the blend of expanding margins, capital allocations that are more beneficial to shareholders, and a rational valuation presents an appealing investment opportunity.
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 $354.04 with a high estimate of $442.00 and a low estimate of $225.00. The average target implies an upside of 35.33% from the current price of $261.62. 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 2.1, 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 $299.32, suggesting a upside of 14.41% from the current price of $261.62. 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: May 28, 2025
- Revenue: $9.83 billion in Q1, up 8% year over year.
- Subscription and Support Revenue: Grew 9% in constant currency.
- Non-GAAP Operating Margin: 32.3% for the quarter.
- Operating Cash Flow: $6.5 billion.
- Remaining Performance Obligation (RPO): $60.9 billion, up 13% year over year.
- Current Remaining Performance Obligation (CRPO): $29.6 billion, up 12% year over year in nominal terms.
- Fiscal Year 2026 Revenue Guidance: Raised to $41.3 billion at the high end.
- Agentforce ARR: $100 million.
- Data Cloud ARR: More than $1 billion, grew over 120% year over year.
- Dividend Payout Increase: 4% in Q1.
- Share Repurchases and Dividends: Over $3 billion returned in Q1.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Salesforce Inc (CRM, Financial) reported strong Q1 fiscal 2026 revenue of $9.83 billion, up 8% year over year.
- The company raised its fiscal year 2026 revenue guidance by $400 million to $41.3 billion at the high end.
- Salesforce Inc (CRM) achieved a non-GAAP operating margin of 32.3% in the quarter.
- The acquisition of Informatica for $8 billion is expected to enhance Salesforce's data and AI capabilities.
- Agentforce has seen rapid adoption with over 4,000 paid customers and $100 million in ARR, showcasing strong growth potential.
Negative Points
- There are concerns about the timing of when Agentforce and Data Cloud will significantly drive overall growth acceleration.
- The integration of Informatica is expected to take time, with accretion anticipated by fiscal year 2027.
- Some geographic regions, such as parts of EMEA, remain constrained, impacting overall growth.
- The company faces challenges in expanding its distribution capacity, which has been flat for the last two years.
- There is uncertainty in customer behavior due to macroeconomic factors and geopolitical tensions, which could impact future growth.
