Customer relationship management company Salesforce (CRM) is set to report its results for the fourth quarter of Fiscal 2025 today. CRM stock has lost about 8% year-to-date, due to cautious enterprise spending amid economic pressure and growing competition. Wall Street analysts anticipate that the company will report earnings of $2.61 per share, reflecting a 14% year-over-year increase.
Meanwhile, revenues are expected to rise by 8% from the same quarter last year, reaching $10.04 billion, according to data from the TipRanks Forecast page. Importantly, Salesforce has just missed earnings estimates once in the past nine quarters.
Analysts Remain Divided Ahead of CRM’s Q4 Print
Ahead of CRM’s Q4 print, analysts remain divided on Salesforce stock. Recently, analyst Brian White of Monness maintained a Hold rating on Salesforce. Though White is positive about Salesforce’s progress with its AI-driven Agentforce 2.0 platform, he sees a tough macro environment and rising competition as key risks.
He also points out that the new CFO, Robin Washington, starting in March, could bring some uncertainty. While the analyst expects the company to meet earnings forecasts and grow subscription sales, he prefers to stay on the sidelines for now.
Meanwhile, Morgan Stanley analyst Keith Weiss kept a Buy rating on the stock with a $405 price target, citing CRM’s strong spot in the GenAI market and attractive valuation. Though the five-star analyst notes challenges like currency swings and leadership changes, he stays positive about the company’s future. He also views the early success of the Agentforce platform as a sign that it could drive customer interest and increase deal wins.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 8.95% move in either direction.
Is Salesforce a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRM stock based on 32 Buys, seven Holds, and two Sells assigned in the past three months. The average CRM price target of $394.86 per share implies a 28.07% upside potential.
