Salesforce 2Q subscription & support revenue $9.69B, est. $9.59B

Salesforce 2Q subscription & support revenue $9.69B, est. $9.59B

Cloud-based software company Salesforce (NYSE: CRM) is set to announce its second quarter earnings on Wednesday, September 3rd, after the market closes. Analysts expect Salesforce to report earnings per share (EPS) of $2.78 on a revenue of $10.14 billion, representing an over eight percent increase from last year [1].

The primary focus for investors in the quarterly report will be the impact of artificial intelligence (AI) on Salesforce's SaaS offerings, the progress on Salesforce's AI sales, and customer reaction to recent pricing changes. Salesforce's acquisition of Regrello, an AI-native solution, last month is expected to further bolster its AI capabilities and integration with existing platforms like Agentforce and Slack [1].

Analysts led by Brad Sills at Bank of America (BofA) have maintained a "Buy" rating on Salesforce, noting that the company's largest business segment, Service Cloud, is poised for better growth in the coming quarters. Their estimate for fiscal 2026 Service Cloud revenue is $9.7 billion, representing 25% of total subscription revenue [1]. According to Seeking Alpha analyst Danil Sereda, AI-driven platforms like Agentforce and Data Cloud are gaining momentum, creating promising new revenue streams and supporting future profitability [1].

In the past two years, CRM has beaten EPS estimates 88% of the time and revenue estimates 75% of the time. Over the last three months, EPS estimates have seen four upward revisions and one downward, while revenue estimates have seen five upward revisions and two downward [1]. This indicates a strong track record of performance and positive analyst sentiment.

The stock price of CRM is currently trading about 24% below its year-start level. Despite this, many Wall Street analysts maintain "Buy" ratings, with the average target price for Salesforce Inc being $346.14, implying a potential upside of +35.08% from the current price of $256.25 [2]. The estimated GF Value for Salesforce Inc in one year is $306.76, suggesting a potential upside of +19.71% from the current price [2].

Investors will closely watch Salesforce's subscription and support revenue trends, which are estimated to be $9.69 billion for Q2, slightly above the estimated $9.59 billion [2]. The quarter should provide clarity on whether Salesforce can convert its AI momentum into durable, scalable growth. Key metrics to watch include guidance for the coming quarters and subscription trends.

References:
[1] https://seekingalpha.com/news/4491302-salesforce-q2-earnings-ahead-street-sees-over-8-increase-in-both-eps-and-revenue
[2] https://finance.yahoo.com/news/salesforce-crm-stock-worth-buy-122413577.html