Salesforce (NYSE:CRM) Stock Price Down 1.6% – Here’s Why

Salesforce Inc. (NYSE:CRM)’s share price fell 1.6% during mid-day trading on Tuesday . The stock traded as low as $204.76 and last traded at $205.7370. 10,014,362 shares changed hands during mid-day trading, a decline of 27% from the average daily volume of 13,643,357 shares. The stock had previously closed at $209.06.

Salesforce News Roundup

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce reported adjusted Q2 earnings of $5.90 per share, well above the $3.27 consensus estimate, while revenue increased 10.8% year over year to $11.35 billion, slightly ahead of expectations. Salesforce Stock Soars After Strong Results, Raised Outlook
• Positive Sentiment: Management raised fiscal 2027 guidance to $46.1 billion–$46.4 billion in revenue and $16.67–$16.71 in EPS. Q3 EPS guidance of $3.42–$3.44 also exceeded the $3.16 analyst consensus, reinforcing expectations for improving growth and profitability. Salesforce Raises Annual Revenue Forecasts on AI Product Momentum
• Positive Sentiment: Underlying demand indicators were encouraging: current remaining performance obligations accelerated 14% in constant currency, free cash flow grew 81%, and Agentforce and Data 360 annual recurring revenue approached $3.9 billion. Agentforce ARR alone reached approximately $1.5 billion, suggesting customers are moving beyond AI experimentation. Salesforce Q2 Results and the SaaSpocalypse Bear Case
• Positive Sentiment: The expanded Anthropic relationship, branded “Claudeforce,” integrates Claude with Salesforce’s CRM data, workflows, governance, and Agentforce tools. Investors view the partnership as evidence that Salesforce can monetize AI rather than be displaced by it. Salesforce and Anthropic Announce Claudeforce
• Neutral Sentiment: Analysts broadly raised price targets, including Truist at $300 and Needham at $400, although several firms retained neutral or underperform ratings with targets below the current trading level. Salesforce Analyst Target Changes
• Negative Sentiment: Reported profit benefited materially from approximately $2.6 billion in gains on strategic investments, including its Anthropic stake. That makes the earnings beat less representative of recurring operating performance and could temper enthusiasm if investors focus on the one-time benefit. Salesforce Stock Jumps on AI Growth and Investment Gain

Analysts Set New Price Targets

Several brokerages recently weighed in on CRM. Sanford C. Bernstein restated an “outperform” rating on shares of Salesforce in a report on Thursday. Oppenheimer reissued an “outperform” rating and set a $275.00 price objective (up from $250.00) on shares of Salesforce in a research note on Thursday. Susquehanna assumed coverage on Salesforce in a report on Wednesday, July 1st. They issued a “neutral” rating for the company. Citizens Jmp reissued a “market outperform” rating and set a $315.00 target price on shares of Salesforce in a research note on Tuesday. Finally, Wall Street Zen downgraded shares of Salesforce from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, fifteen have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $260.03.

Salesforce Stock Performance

The company has a market capitalization of $204.67 billion, a price-to-earnings ratio of 28.98, a P/E/G ratio of 1.11 and a beta of 1.16. The stock’s 50 day moving average price is $177.13 and its 200 day moving average price is $181.60. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 1.15.

Salesforce (NYSE:CRM) last released its earnings results on Wednesday, August 26th. The CRM provider reported $5.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.27 by $2.63. Salesforce had a return on equity of 18.72% and a net margin of 18.73%.The business had revenue of $11.35 billion for the quarter, compared to analyst estimates of $11.33 billion. During the same quarter in the prior year, the company posted $2.91 earnings per share. Salesforce’s revenue was up 10.8% on a year-over-year basis. Salesforce has set its FY 2027 guidance at 16.670-16.710 EPS and its Q3 2027 guidance at 3.420-3.440 EPS. Analysts expect that Salesforce Inc. will post 10.27 earnings per share for the current year.

Hedge Funds Weigh In On Salesforce

Hedge funds and other institutional investors have recently bought and sold shares of the business. Temasek Holdings Private Ltd grew its position in Salesforce by 3.7% during the fourth quarter. Temasek Holdings Private Ltd now owns 683,790 shares of the CRM provider’s stock valued at $181,143,000 after acquiring an additional 24,332 shares during the last quarter. SFE Investment Counsel increased its holdings in shares of Salesforce by 82.7% in the fourth quarter. SFE Investment Counsel now owns 17,394 shares of the CRM provider’s stock worth $4,608,000 after buying an additional 7,871 shares during the period. Fluent Financial LLC bought a new stake in Salesforce in the second quarter valued at approximately $2,265,000. Secured Retirement Advisors LLC bought a new stake in Salesforce in the first quarter valued at approximately $1,004,000. Finally, Janus Henderson Group PLC raised its holdings in Salesforce by 2.5% during the 1st quarter. Janus Henderson Group PLC now owns 127,739 shares of the CRM provider’s stock valued at $23,846,000 after buying an additional 3,125 shares during the last quarter. Institutional investors own 80.43% of the company’s stock.

About Salesforce

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.