Salesforce (NYSE:CRM) is set to give its latest quarterly earnings report on Wednesday, 2025-12-03. Here's what investors need to know before the announcement.
Analysts estimate that Salesforce will report an earnings per share (EPS) of $2.58.
The market awaits Salesforce's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings Track Record
The company's EPS beat by $0.39 in the last quarter, leading to a 4.85% drop in the share price on the following day.
Here's a look at Salesforce's past performance and the resulting price change:
| Quarter | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 |
|---|---|---|---|---|
| EPS Estimate | 2.52 | 2.55 | 2.61 | 2.44 |
| EPS Actual | 2.91 | 2.58 | 2.78 | 2.41 |
| Price Change % | -5.00 | -3.00 | -4.00 | 11.00 |
Salesforce Share Price Analysis
Shares of Salesforce were trading at $232.83 as of December 01. Over the last 52-week period, shares are down 36.71%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Insights on Salesforce
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Salesforce.
Analysts have provided Salesforce with 29 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $316.38, suggesting a potential 35.88% upside.
Analyzing Analyst Ratings Among Peers
The below comparison of the analyst ratings and average 1-year price targets of AppLovin, Intuit and SAP, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for AppLovin, with an average 1-year price target of $736.84, suggesting a potential 216.47% upside.
- Analysts currently favor an Outperform trajectory for Intuit, with an average 1-year price target of $843.75, suggesting a potential 262.39% upside.
- Analysts currently favor an Outperform trajectory for SAP, with an average 1-year price target of $340.75, suggesting a potential 46.35% upside.
Insights: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for AppLovin, Intuit and SAP, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Salesforce | Outperform | 9.77% | $7.99B | 3.09% |
| AppLovin | Outperform | 68.23% | $1.23B | 63.27% |
| Intuit | Outperform | 18.34% | $3.00B | 2.29% |
| SAP | Outperform | 7.15% | $6.67B | 4.78% |
Key Takeaway:
Salesforce ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.
Delving into Salesforce's Background
Salesforce provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
Salesforce's Financial Performance
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Over the 3 months period, Salesforce showcased positive performance, achieving a revenue growth rate of 9.77% as of 31 July, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Salesforce's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 18.43%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Salesforce's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.09%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Salesforce's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.92%, the company showcases efficient use of assets and strong financial health.
Debt Management: Salesforce's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.18.
To track all earnings releases for Salesforce visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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