Salesforce Stock Is Moving Lower Thursday: What's Fueling The Sell-Off?

Salesforce Inc CRM shares are trading lower Thursday after the company reported second-quarter financial results and issued third-quarter guidance below estimates. Multiple analyst firms lowered price targets following the company’s quarterly results.

What Happened: Salesforce beat analyst estimates on the top and bottom lines in the second quarter, reporting revenue of $10.24 billion versus estimates of $10.14 billion, and adjusted earnings of $2.91 per share versus estimates of $2.78 per share.

Salesforce guided for third-quarter revenue in the range of $10.24 billion to $10.29 billion versus estimates of $10.29 billion. The company also said it anticipates third-quarter adjusted earnings of $2.84 to $2.86 per share versus estimates of $2.85 per share.

Salesforce expects fiscal-year 2026 revenue to be in a range of $41.1 billion to $41.3 billion versus estimates of $41.2 billion, and full-year adjusted earnings to be between $11.33 and $11.37 per share versus estimates of $11.31 per share.

“Our guidance … you know, is always appropriately conservative,” CEO Marc Benioff said in a CNBC interview following the print.

Several analysts lowered price targets following the company’s quarterly results, which appears to be weighing on shares.

• Piper Sandler maintained an Overweight and lowered the price target from $335 to $315.

• JPMorgan maintained an Overweight and lowered the price target from $380 to $365.

• Needham reiterated a Buy rating and maintained a price target of $400.

• Canaccord Genuity maintained a Buy rating and lowered the price target from $350 to $300.

• Keybanc maintained an Overweight and lowered the price target from $440 to $400.

CRM Price Action: Salesforce shares were down 7.12% at $238.18 at the time of publication on Thursday, according to Benzinga Pro.

Read Next:

• Salesforce Stock Falls After Q2 Beat As Marc Benioff Tells Jim Cramer Investors Should Stop Nitpicking: ‘Our Results Are Absolutely Fantastic’

Photo: courtesy of Salesforce.