Salesforce Q1 Earnings Preview: Adjusted EPS Guidance of $3.11-$3.13
Salesforceis scheduled to report results of its first fiscal quarter after the market close on Wednesday, May 27, with a conference call scheduled for 5:00 pm ET. What to watch for:GUIDANCE:Along with its fourth quarter earnings report, Salesforce guided to FY27 adjusted earnings per share of $13.11-$13.19 on a revenue of $45.8B-$46.2B, which compared to analyst estimates of $13.12 and $46.01B, respectively, at the time of the report. Consensus for EPS has since risen to $13.23, while estimates for revenue have jumped to $46.11B. The company also provided Q1 EPS guidance of $3.11-$3.13 on revenue of $11.03B-$11.08B. Consensus for earnings, which was at $3.01 at the time, has increased to $3.13, and consensus for revenue, which was at $10.98B, has risen to $11.06B.PARTNERSHIPS, FEATURES:In February, GoDaddyannounced an integration with Salesforce's MuleSoft Agent Fabric. In March, the company and Formula 1announced the launch of a new fan companion agent to scale and personalize engagement for F1's 827M global fans. Salesforce also announced in March the U.S. Department of Labor has modernized its National Contact Center with Salesforce and was rolling out Agentforce to provide more personalized support. The company also reported the deployment of a new agentic operating system to simplify incident response and improve Veteran care across its more than 150 Department of Veterans Affairs medical and outpatient centers. Additionally in March, Bandwidthannounced it had partnered with the newly launched Agentforce Contact Center. Docusignalso announced a new integration with Slack, which brings its Intelligent Agreement Management platform directly into Slackbot. In April, Salesforce announced an expanded collaboration with Engine. Additionally in April, Google Cloudand the company announced an expanded partnership enabling AI agents to execute end-to-end workflows across both platforms by solving the long-standing challenge of fragmented data and disconnected systems. Unisyshas announced an expansion of its collaboration with Salesforce to strengthen the delivery of its on-site technology support.ACQUISITIONS:In February, Salesforce announced it had signed a definitive agreement to acquire Cimulate. The company said, "The acquisition will strengthen Salesforce's investment in Agentforce Commerce by accelerating improvements to search and discovery, helping retailers deliver more personalized, contextual, and conversational shopping experiences." Salesforce completed its acquisition of Cimulate on March 3.The company also announced in February a definitive agreement to acquire Momentum, a conversational insights and revenue orchestration platform. The company said, "The acquisition will extend the ability of Agentforce 360 and Slackbot to ingest and analyze unstructured data from third-party video channels and apply those insights directly to agentic workflows." Salesforce completed its acquisition of Momentum on March 2.ANALYST VIEWS:Deutsche Bank expects Salesforce to report a "seasonally slow but steady" start to fiscal 2027. It believes the company will likely meet "muted" fiscal Q1 expectations amid a "tenuous backdrop" for software-as-a-service. Deutsche's field conversations leave it expecting less upside to Salesforce's key metrics relative to recent quarters. The earnings report is unlikely to bring meaningful estimate revisions which "is required to sway sentiment and catalyze the stock," the analyst said. The firm has a Buy rating on the shares with a $255 price target.Meanwhile, BofA reinstated coverage of Salesforce with an Underperform rating and $160 price target. Salesforce remains "a deeply entrenched platform," but the firm expects a structural reset driven by AI transition, the analyst said. This raises three core concerns, namely muted net new customer additions, limited upsell potential, and an "underwhelming" AI monetization pathway, the analyst added.Citi lowered the firm's price target on Salesforce to $188 from $200 and kept a Neutral rating on the shares ahead of the Q1 report. Citi reduced its fiscal 2027 estimates towards the low end of Salesforce's outlook after its fieldwork indicated lengthening deal cycles and greater portfolio optimization at renewals.
Trade with 70% Backtested Accuracy
Analyst Views on CRM
About CRM
About the author
Salesforce to Invest $1B in Switzerland to Boost AI Adoption
- Investment Scale: Salesforce announced a $1 billion investment in Switzerland over the next five years to accelerate the country's adoption of agentic AI, further solidifying its long-term presence in one of Europe's leading technology, finance, and innovation hubs.
- Local Ecosystem Support: This investment will support Salesforce's local workforce, the growth of its customer and partner ecosystem, and AI skills development initiatives, aiming to enhance the company's competitive position in the region.
- Global Summit Participation: Chair and CEO Marc Benioff made the announcement in Geneva and will co-chair the inaugural meeting of the AI for Good Global Summit alongside Rwandan President Paul Kagame, highlighting Switzerland's pivotal role in AI governance.
- Market Reaction: Following the investment announcement, Salesforce's stock price increased by approximately 2% during pre-market trading on Tuesday, reflecting positive market expectations regarding the company's future growth potential.
Investors Seek Best Stocks to Buy Now
- Investment Recommendations: The analyst team has identified the best stocks to buy currently, with Salesforce not making the list, yet the remaining ten stocks are believed to potentially yield significant returns in the coming years, highlighting market interest in emerging investment opportunities.
- Historical Return Comparison: For instance, an investment of $1,000 in Netflix when recommended in December 2004 would have grown to $418,761, while Nvidia's recommendation in April 2005 would have turned the same investment into $1,195,804, underscoring the importance of early investments.
- Return on Investment: Stock Advisor boasts an average return of 918%, significantly outperforming the S&P 500's 208%, indicating the service's effectiveness in identifying high-potential stocks and its market advantage.
- Community Support: Joining Stock Advisor not only provides access to the latest investment recommendations but also fosters participation in a community built by individual investors, enhancing interaction and support among investors.
Investors Weigh Investment Choices at Current Market Prices
- Market Price Analysis: Stock prices from the afternoon of July 4, 2026, have sparked investor interest in current investment choices, indicating uncertainty about future market trends.
- Investor Sentiment: There is a strong interest among investors regarding the performance of different stocks, reflecting sensitivity to market dynamics and exploration of potential investment opportunities.
- Video Release Timing: The video was published on July 6, 2026, aiming to provide investors with the latest market analysis and investment advice to aid in making informed decisions.
- Market Trend Observation: The fluctuations in current market prices may influence investor decisions, necessitating close monitoring of market changes to optimize investment portfolios.
US Stocks Show Mixed Movement, Led by Chipmakers
- Market Performance: The S&P 500 Index rose by 0.43% and the Nasdaq 100 Index increased by 1.17%, driven by strong performances from chipmakers and AI infrastructure stocks, reflecting heightened investor confidence in technology shares.
- Oil Price Impact: WTI crude oil prices fell by 0.5% as Saudi Arabia and the UAE ramped up shipments to near pre-war levels, which eased inflation expectations and led to a 2 basis point drop in the 10-year T-note yield to 4.46%, providing support for the bond market.
- Earnings Outlook: Bloomberg Intelligence forecasts a 23% increase in Q2 earnings, close to Q1's 30% growth, indicating that AI spending will be a major driver, expected to contribute nearly 60% to the S&P 500's earnings-per-share growth.
- International Market Dynamics: European stock markets are generally down, with Eurozone May retail sales rising 0.2% month-over-month, below the expected 0.3%, while German May factory orders increased by 1.9%, exceeding the expected 1.1%, indicating a mixed economic recovery.
Hexaware Partners with SmartRent for AI-Driven Transformation
- Enhanced Customer Experience: Hexaware will manage SmartRent's customer support from its Hyderabad delivery center, utilizing advanced Voice AI agents and intelligent orchestration to significantly improve customer satisfaction and service quality.
- Optimized Bill-to-Cash Platform: Hexaware will deploy its adaptive bill-to-cash solutions, organizing data and insights to enhance revenue operations outcomes and shorten days sales outstanding (DSO).
- Salesforce Revenue Cloud Advanced Implementation: Hexaware will transform SmartRent's lead-to-order process with Salesforce Revenue Cloud Advanced, achieving faster quote cycles and stronger pricing governance while providing a unified view of the revenue pipeline.
- Building a Modern Operating Model: Together, Hexaware and SmartRent are creating a modern operating model that integrates customer experience, revenue operations, and AI-driven business transformation into a single foundation for growth, thereby enhancing competitive advantage.
Mixed Close for US Stocks as Chipmakers Continue to Decline
- Market Divergence: On Thursday, the S&P 500 closed unchanged, while the Dow Jones Industrial Average rose 1.14% to a new all-time high, and the Nasdaq 100 fell 1.61%, indicating a split in market sentiment, particularly due to the ongoing weakness in chip stocks impacting the broader market.
- Employment Data Impact: US nonfarm payrolls rose by 57,000 in June, significantly below the expected 113,000, although the unemployment rate unexpectedly fell to a one-year low of 4.2%, suggesting a stronger labor market than anticipated, which may influence the Fed's interest rate decisions.
- Chipmaker Declines: Chipmakers faced another sell-off on Thursday, with the iShares Semiconductor ETF dropping over 5%, and SanDisk and KLA Corp falling more than 14% and 12%, respectively, reflecting growing market concerns over the sustainability of the AI buildout boom.
- Oil Price Decline Impact: WTI crude oil prices fell to a fresh 4.25-month low as UAE ramped up shipments by 30% in June, restoring exports to pre-war levels, a trend that may further lower inflation expectations and affect market sentiment.
Salesforce to Invest $1B in Switzerland to Boost AI Adoption
- Investment Scale: Salesforce announced a $1 billion investment in Switzerland over the next five years to accelerate the country's adoption of agentic AI, further solidifying its long-term presence in one of Europe's leading technology, finance, and innovation hubs.
- Local Ecosystem Support: This investment will support Salesforce's local workforce, the growth of its customer and partner ecosystem, and AI skills development initiatives, aiming to enhance the company's competitive position in the region.
- Global Summit Participation: Chair and CEO Marc Benioff made the announcement in Geneva and will co-chair the inaugural meeting of the AI for Good Global Summit alongside Rwandan President Paul Kagame, highlighting Switzerland's pivotal role in AI governance.
- Market Reaction: Following the investment announcement, Salesforce's stock price increased by approximately 2% during pre-market trading on Tuesday, reflecting positive market expectations regarding the company's future growth potential.
Investors Seek Best Stocks to Buy Now
- Investment Recommendations: The analyst team has identified the best stocks to buy currently, with Salesforce not making the list, yet the remaining ten stocks are believed to potentially yield significant returns in the coming years, highlighting market interest in emerging investment opportunities.
- Historical Return Comparison: For instance, an investment of $1,000 in Netflix when recommended in December 2004 would have grown to $418,761, while Nvidia's recommendation in April 2005 would have turned the same investment into $1,195,804, underscoring the importance of early investments.
- Return on Investment: Stock Advisor boasts an average return of 918%, significantly outperforming the S&P 500's 208%, indicating the service's effectiveness in identifying high-potential stocks and its market advantage.
- Community Support: Joining Stock Advisor not only provides access to the latest investment recommendations but also fosters participation in a community built by individual investors, enhancing interaction and support among investors.
Investors Weigh Investment Choices at Current Market Prices
- Market Price Analysis: Stock prices from the afternoon of July 4, 2026, have sparked investor interest in current investment choices, indicating uncertainty about future market trends.
- Investor Sentiment: There is a strong interest among investors regarding the performance of different stocks, reflecting sensitivity to market dynamics and exploration of potential investment opportunities.
- Video Release Timing: The video was published on July 6, 2026, aiming to provide investors with the latest market analysis and investment advice to aid in making informed decisions.
- Market Trend Observation: The fluctuations in current market prices may influence investor decisions, necessitating close monitoring of market changes to optimize investment portfolios.
US Stocks Show Mixed Movement, Led by Chipmakers
- Market Performance: The S&P 500 Index rose by 0.43% and the Nasdaq 100 Index increased by 1.17%, driven by strong performances from chipmakers and AI infrastructure stocks, reflecting heightened investor confidence in technology shares.
- Oil Price Impact: WTI crude oil prices fell by 0.5% as Saudi Arabia and the UAE ramped up shipments to near pre-war levels, which eased inflation expectations and led to a 2 basis point drop in the 10-year T-note yield to 4.46%, providing support for the bond market.
- Earnings Outlook: Bloomberg Intelligence forecasts a 23% increase in Q2 earnings, close to Q1's 30% growth, indicating that AI spending will be a major driver, expected to contribute nearly 60% to the S&P 500's earnings-per-share growth.
- International Market Dynamics: European stock markets are generally down, with Eurozone May retail sales rising 0.2% month-over-month, below the expected 0.3%, while German May factory orders increased by 1.9%, exceeding the expected 1.1%, indicating a mixed economic recovery.
Hexaware Partners with SmartRent for AI-Driven Transformation
- Enhanced Customer Experience: Hexaware will manage SmartRent's customer support from its Hyderabad delivery center, utilizing advanced Voice AI agents and intelligent orchestration to significantly improve customer satisfaction and service quality.
- Optimized Bill-to-Cash Platform: Hexaware will deploy its adaptive bill-to-cash solutions, organizing data and insights to enhance revenue operations outcomes and shorten days sales outstanding (DSO).
- Salesforce Revenue Cloud Advanced Implementation: Hexaware will transform SmartRent's lead-to-order process with Salesforce Revenue Cloud Advanced, achieving faster quote cycles and stronger pricing governance while providing a unified view of the revenue pipeline.
- Building a Modern Operating Model: Together, Hexaware and SmartRent are creating a modern operating model that integrates customer experience, revenue operations, and AI-driven business transformation into a single foundation for growth, thereby enhancing competitive advantage.
Mixed Close for US Stocks as Chipmakers Continue to Decline
- Market Divergence: On Thursday, the S&P 500 closed unchanged, while the Dow Jones Industrial Average rose 1.14% to a new all-time high, and the Nasdaq 100 fell 1.61%, indicating a split in market sentiment, particularly due to the ongoing weakness in chip stocks impacting the broader market.
- Employment Data Impact: US nonfarm payrolls rose by 57,000 in June, significantly below the expected 113,000, although the unemployment rate unexpectedly fell to a one-year low of 4.2%, suggesting a stronger labor market than anticipated, which may influence the Fed's interest rate decisions.
- Chipmaker Declines: Chipmakers faced another sell-off on Thursday, with the iShares Semiconductor ETF dropping over 5%, and SanDisk and KLA Corp falling more than 14% and 12%, respectively, reflecting growing market concerns over the sustainability of the AI buildout boom.
- Oil Price Decline Impact: WTI crude oil prices fell to a fresh 4.25-month low as UAE ramped up shipments by 30% in June, restoring exports to pre-war levels, a trend that may further lower inflation expectations and affect market sentiment.
