Should You Buy, Hold, or Sell Salesforce Stock After May 28?

Salesforce, Inc. CRM will report its first-quarter fiscal 2026 results on Wednesday after market close. Thus, let’s examine Salesforce’s projected earnings, long-term growth factors, and post-earnings stock trading strategies. Salesforce’s Q1 Earnings: What Should We Anticipate? Salesforce expects fiscal first-quarter revenues to come in at $9.74 billion, suggesting an increase of 6.6% from the year-ago quarter. Earnings per share (EPS) are projected at $2.54, indicating 4.1% growth year over year.  Image Source: Zacks Investment ResearchMoreover, over the last four quarters, Salesforce has achieved an average positive earnings surprise of 4.4%, signaling that it may meet its desired earnings growth in the fiscal first quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Image Source: Zacks Investment ResearchStrong momentum in Salesforce’s artificial intelligence (AI) platform, Agentforce, is expected to boost earnings in the fiscal first quarter. With the help of Agentforce, Salesforce can provide its customers out-of-the-box AI agents that can handle tasks related to customer service and technical issues.  Agentforce enhances workers’ efficiency regarding productivity. Salesforce first released Agentforce in September 2024, and in December of the same year, the updated version, Agentforce 2.0, was made available. What Factors Will Drive Salesforce’s Long-Term Growth? While positive first-quarter fiscal results are anticipated to raise Salesforce’s stock price, a recent deal with Informatica Inc. INFA has already made a significant impact.  In an all-cash transaction, Salesforce will acquire Informatica for $8 billion. Earlier in April 2024, Salesforce was expected to purchase Informatica at a mid-$30 per share price point. However, now Salesforce is acquiring it at a much reduced price of $25 per share.  Salesforce’s AI strategy is anticipated to be strengthened by the deal, which is expected to close in the next fiscal year. Informatica’s integration into the Salesforce platform would improve its data foundation, leading to substantial growth. Anyway, the Customer Relationship Management (CRM) market, where Salesforce holds the top spot globally, is projected to witness a robust 14.6% CAGR from 2025 to 2030, according to Grand View Research. Consequently, Salesforce anticipates its fiscal 2026 revenues to increase by 7% to 8%, reaching a range of $40.5 billion to $40.9 billion, and adjusted EPS to similarly improve. How to Trade Salesforce Stock Post Q1 Earnings? With Agentforce expected to boost fiscal first-quarter results, the Informatica deal, and a competitive edge in the CRM market, should compel the existing stakeholders to hold onto Salesforce stock. Salesforce is also cash-rich, which should help it pay off debts, pursue strategic acquisitions, and increase investments in growth opportunities. However, regardless of fiscal first-quarter results, Salesforce’s stock price could be volatile due to U.S. market saturation, competition from cloud-based players like Microsoft Corporation MSFT and Oracle Corporation ORCL, and reduced IT spending caused by high interest rates and inflation. So, new entrants should avoid investing in Salesforce stock until these challenges are resolved.  Salesforce stock, for now, has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Salesforce Inc. (CRM): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Informatica Inc. (INFA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks