Analysts Bullish on Salesforce Stock Ahead of Earnings

Salesforce (CRM) is set to report its fourth-quarter earnings on February 26, and analysts are largely bullish on the company's stock, anticipating AI-driven gains. The customer relationship management (CRM) software giant is expected to post revenue of $10.05 billion, up 8% year-over-year, and adjusted earnings per share (EPS) of $2.62, up from $2.29 a year ago. The consensus price target of roughly $401 suggests nearly 30% upside from Friday's closing price.

Analysts have a "buy" or equivalent rating on Salesforce stock, with 20 analysts issuing "buy" or equivalent ratings for the stock, and the remaining five analysts giving the stock a "hold" rating. Deutsche Bank analysts maintained a "buy" rating and $400 price target, pointing to early momentum in Agentforce, the company's suite of autonomous AI agents unveiled in September. The analysts said an "AI halo effect" is driving investments to the Salesforce platform, "even if current Agentforce spend is just gaining steam."

Salesforce's Data Cloud segment has also been a key driver of growth, with revenue approaching $400 million in annual recurring revenue, nearly doubling year-over-year. The company reported in February that its data cloud segment was approaching $400 million in annual recurring revenue, nearly doubling year-over-year. Salesforce Chief Operating Officer (COO) Brian Millham said it was "the beginning of a new innovation cycle that will spark a massive software buying cycle over the coming years, and Salesforce is leading the way."



Investors should monitor important support levels on the Salesforce chart around $312, $270, and $232, while watching an upside price target at $500. The stock formed a textbook cup and handle pattern between November 2021 and November this year before breaking out above the bullish chart formation last month. However, the stock retraced towards the formation's top trendline last week, suggesting caution among investors ahead of the company's quarterly results.



In conclusion, analysts are bullish on Salesforce stock ahead of the company's earnings report, with a consensus price target of roughly $401 suggesting nearly 30% upside from Friday's closing price. The company's strong revenue growth, AI-driven gains, and Data Cloud segment momentum are key drivers of this optimism. Investors should monitor important support levels and watch for a potential upside price target at $500.