Salesforce: Jim Cramer Discusses Enterprise Software Amid Productivity Boom Concerns

Jim Cramer discusses Salesforce, Inc. (CRM), an enterprise software company, in the context of the Treasury Secretary's comment on a potential productivity boom in Q1 2026. Cramer notes that investors are worried about Salesforce's quarter due to its reliance on enterprise software, but acknowledges the company's potential as an investment. He also mentions that Salesforce's "agentics" software is part of the enterprise software cohort.

Salesforce Inc. (CRM), a leading enterprise software company, is set to release its second-quarter fiscal 2026 earnings on September 3. As investors brace for the results, Jim Cramer's recent discussion on the potential productivity boom in Q1 2026 has added to the anticipation. Despite the concerns surrounding enterprise software, Salesforce remains a significant player in the market.

Salesforce's expected revenue for the second quarter is between $10.11 billion and $10.16 billion, with a midpoint estimate of $10.135 billion. This represents an 8.7% increase from the year-ago quarter, aligning with the Zacks Consensus Estimate of $10.13 billion [1]. Non-GAAP earnings per share are expected to fall within the range of $2.76-$2.78, with a consensus mark of $2.77 per share, indicating an 8.2% year-over-year growth [1].

Cramer's comments highlight the reliance of Salesforce on enterprise software, a sector that has seen increased scrutiny due to potential macroeconomic headwinds. However, Salesforce's strong position in customer relationship management (CRM) and its strategic focus on digital transformation and cloud solutions provide a robust foundation for growth. The company's ability to embed generative AI tools across its products has also been a key driver of its top-line growth [1].

Salesforce's recent acquisitions, such as Spiff, Own, and Zoomin, have further enhanced its capabilities and diversified its revenue base. These acquisitions are expected to have driven higher subscription revenues, particularly across its core cloud services [1]. The company's increasing footprint in the public sector and its strategic focus on key geographic markets are also likely to have contributed to its strong performance.

Analysts have provided varying recommendations for Salesforce. Cantor Fitzgerald analyst Matthew VanVliet reiterated a Buy rating with a price target of $325.00, while Oppenheimer's Brian Schwartz also maintained a Buy rating. However, Monness maintained a Hold rating on Salesforce [2]. These differing opinions reflect the market's mixed sentiment towards the company's near-term prospects.

Salesforce's stock performance has been mixed over the past year. While shares have risen 0.8%, they have underperformed the Zacks Computer – Software industry's rise of 20.1% and other enterprise software makers like SAP SE, Oracle ORCL, and Microsoft MSFT [1]. The company's stock is currently trading at a discounted multiple compared to its peers, with a forward 12-month P/S of 5.62X versus the industry average of 8.43X [1].

Despite the concerns surrounding enterprise software and macroeconomic uncertainties, Salesforce's leadership in the CRM industry, aggressive AI expansion, and increasing enterprise IT spending trends create a solid foundation for sustained growth. Its ability to deliver earnings growth despite ongoing macroeconomic uncertainties makes the stock worth holding, according to some analysts [1].

References:
[1] https://finance.yahoo.com/news/salesforce-q2-earnings-buy-sell-120900140.html
[2] https://www.theglobeandmail.com/investing/markets/stocks/CRM/pressreleases/34484656/salesforce-crm-new-buy-recommendation-for-this-technology-giant/