Salesforce (CRM) has reported quarterly financial results that beat Wall Street forecasts across the board.
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The San Francisco-based producer of customer relations management systems announced earnings per share of $2.58, which was ahead of the $2.54 consensus expectation among analysts. Revenue in the quarter totaled $9.83 billion, which topped the $9.75 billion that was anticipated on Wall Street. Sales were up 8% from a year ago.
Management at Salesforce also raised their full-year guidance, saying they now expect $11.27 to $11.33 in earnings per share and $41 billion to $41.30 billion in revenue. That’s ahead of Wall Street projections of $11.16 a share in earnings and $40.82 billion in sales.
For the current second quarter of the year, Salesforce anticipates EPS of $2.76 to $2.78 and $10.11 billion to $10.16 billion in revenue. Analysts had $2.73 in earnings and $10.01 billion in revenue penciled in for the company.
Salesforce’s net income. Source: Main Street Data
Informatica Acquisition
Salesforce’s quarterly results come a day after the company announced that it is buying cloud data management firm Informatica (INFA) in an $8 billion deal that bolsters its push into artificial intelligence (AI). Under terms of the deal, holders of Informatica’s Class A and Class B-1 common stock will receive $25 in cash per share.
Salesforce said it will fund the purchase of Informatica through a combination of cash and debt. The acquisition is subject to regulatory approval. Salesforce said that it plans to combine Informatica’s data catalog, integration, governance, privacy, and data management services with its agentic AI solution called “Agentforce.”
Is CRM Stock a Buy?
The stock of Salesforce has a consensus Moderate Buy rating among 36 Wall Street analysts. That rating is based on 27 Buy, seven Hold, and two Sell recommendations issued in the last three months. The average CRM price target of $350.58 implies 27.57% upside from current levels. These ratings are likely to change after the company’s financial results.
