As software stocks rebound in late 2024, Salesforce is expected to report earnings. Salesforce software stocks 2024 update,
Some analysts will be looking for preliminary fiscal 2026 guidance when Salesforce (CRM), a company that makes corporate software, releases its Q3 earnings on Tuesday. In 2025, Salesforce’s stock has increased 26%, mostly as a result of the company’s September announcement of a new plan for artificial intelligence products.
As certain software stocks, including Snowflake (SNOW), end the year positively, Salesforce releases its earnings report.
With the majority of the gains occurring since September, the iShares Expanded Tech-Software Sector ETF (IGV), an industry index that comprises Microsoft (MSFT) and several large-cap software businesses, has increased by 29% in 2024.
How Will 2024 See the End of Software Stocks?
Salesforce’s shares, however, saw a decline following Workday’s (WDAY) earnings announcement in late November.
“2024 has been a harrowing year for the software complex, and Workday’s lackluster results last week indicate the road to recovery is filled with obstacles,” Brian White, an analyst at Monness, Crespi, Hardt & Co., stated in a report. “The 2023 gen AI propaganda has turned out to be a software revenue wasteland in 2024. But over the course of the next 12 to 18 months, we think the industry will start to generate some more activity. One of the most outspoken proponents of next-generation AI, Salesforce has been launching advancements at a breakneck pace. Most significantly, Salesforce is using Agentforce to place a significant wager on the development of AI agents in the future.
Salesforce just made the switch to self-governing AI bots. Consequently, there are now higher expectations for the monetization of AI solutions.
Salesforce is integrating artificial intelligence (AI) into its wide range of marketing automation, customer management, and customer care tools. It is employing additional salesmen in order to use the AI agent platform to attract corporate clients.
The main concern is whether the recent drive for AI will hinder Salesforce’s efforts to increase its profit margins, which has been a top objective since activist investors put pressure on the software company two years ago.
“On the Q3 earnings call, management commentary on balancing investments in new growth opportunities while efficiency initiatives remain ongoing in less productive parts of the organization would be helpful to build investor confidence in an upward trajectory for margin expansion,” said Keith Weiss, an analyst at Morgan Stanley, in a
Salesforce Stock: Creating Excitement with Agentforce.
Analysts predict that revenue and EPS will climb by 9% and 10%, respectively, in fiscal 2026, which begins with the April quarter.
Mark Murphy, an analyst at JPMorgan, recently polled the software company’s sales associates.
“The survey shows Agentforce is a high-quality product that is generating real customer excitement, while delineating a material step up from prior innovations in Salesforce’s toolchain such as Einstein Copilot/GPT,” Murphy stated in the research.
He continued: “Our view is that the macro environment is not yet all that changed relative to earlier this year, and our expectation is that Agentforce, while a critical development, is unlikely to materially move the needle on revenue growth for about a year given its revenue model and very early stage, just a few weeks into general availability.”
Estimates for the Salesforce Earnings Report.
Since the firm started talking about Agentforce in its Q2 earnings report, Salesforce shares have increased 32%, which probably raised investor expectations going into the print. Thus, given a cautious first-blush fiscal 2026 growth estimate, we should expect some normal pullback after the recent spike.
Analysts predict that revenue will increase 7% to $9.3 billion in Q3 and adjusted EPS will increase 16% to $2.44.
Current remaining performance obligations, a crucial financial indicator, are predicted to increase by 9% to $26.1 billion. Deferred revenue and order backlog are combined to create CRPO bookings.
Given the scheduled departure of the chief financial officer and the departure of the director of AI research to Meta Platforms (META), several analysts will be interested in CEO Marc Benioff’s opinions regarding management changes. In March 2025, Salesforce President Brian Millham’s retention contract is up for renewal.
Technical Ratings for Salesforce Stock.
CRM stock has an IBD Composite Rating of 96 out of a possible 99, per IBD Stock Checkup.
Five distinct proprietary ratings are combined into one user-friendly rating by IBD’s Composite Rating. A Composite Rating of 90 or higher is also indicative of the greatest growth stocks.
Salesforce’s stock also has a B Accumulation/Distribution Rating. The grade examines how a stock’s price and volume have changed during the previous 13 weeks of trading. The rating, which ranges from A+ to E, gauges institutional stock purchases and sales. Heavy institutional buying is denoted by an A+, and heavy selling by an E. Consider a C to be neutral.
