Here’s what Wall Street experts are saying about Salesforce ahead of earnings

Salesforce (CRM) is scheduled to report results of its fourth fiscal quarter after the market close on Wednesday, February 28, with a conference call scheduled for 5:00 pm ET. What to watch for:

GUIDANCE: Along with its third quarter earnings report, Salesforce narrowed 2024 revenue guidance to $34.75B-$34.8B from $34.7B-$34.8B. Consensus, which was $31.75B at the time, has since risen to $34.8B. Salesforce also raised its 2024 adjusted earnings per share view to $8.18-$8.19 from $8.04-$8.06. Consensus for EPS, which was $7.35 at the time, has jumped to $8.20. The company also provided fourth quarter adjusted EPS guidance of $2.25-$2.26 on revenue of $9.18B-$9.23B. Consensus for earnings, which was at $1.98 at the time, has risen to $2.26, and consensus for revenue, which was at $8.4B, has jumped $9.22B.

PARTNERSHIPS, FEATURES: In November, Accenture (ACN) and Salesforce announced that they are investing in the development of Salesforce Life Sciences Cloud. In December, Salesforce and ADP (ADP) announced the expansion of their work together to reimagine ADP’s client experience. The company also announced significant updates to its Einstein 1 Platform in the month, adding the Data Cloud Vector Database and Einstein Copilot Search. Additionally in December, nCino (NCNO) announced an expanded partnership with Salesforce to accelerate the delivery of cloud solutions to the financial services industry. The company also launched Unlimited Edition+, a simplified technology package for businesses looking to accelerate growth with AI, data, and CRM, in December. Meanwhile in January, Amazon (AMZN) announced a Buy with Prime for Salesforce Commerce Cloud integration. Salesforce also announced new data and AI-powered tools to transform shopping experiences in January.

ANALYST VIEWS: On Tuesday, Wells Fargo analyst Michael Turrin raised the firm’s price target on Salesforce to $300 from $290 and kept an Equal Weight rating on the shares. Following up on the firm’s Q4 preview, Wells hosted a call with a key Salesforce partner ahead of the Q4 report. Among the key takeaways are the fact demand environment seems to have stabilized, and Data Cloud + GenAI remaining key drivers of potential outperformance in FY25.

Meanwhile on Monday, Citi analyst Tyler Radke raised the firm’s price target on Salesforce to $325 from $265 and kept a Neutral rating on the shares. The firm heads into Salesforce’s fiscal Q4 report with “balanced views,” saying stabilizing demand signals are offset by lagging seat-based down-sell headwinds limiting reaccelerating growth potential. Citi’s partner checks were mixed but leaned modestly more positive versus last quarter as it heard of “more greenshoot anecdotes” like front office budgets back to growth objectives, the analyst said.

Additionally on Sunday, Jefferies analyst Brent Thill raised the firm’s price target on Salesforce to $350 from $325 and kept a Buy rating on the shares. The firm’s survey indicates a modest improvement in demand. Its checks indicate manufacturing and tech verticals are rebounding, while public sector demand remains strong. Jefferies expects Salesforce to exceed 10% Q4 CRPO growth guide and guide conservatively for 2025. Further, the firm estimates 10% top line growth for 2025 below the Street at 11% and 31.5% margins below the Street at 31.9%. Jefferies sees Salesforce as a $10-plus earnings story in CY25.