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Research Alert: Crm: Mixed Results; Unable To Alleviate Software Concerns

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

CRM posted Apr-Q revenue growth of 13% to $11.1B, in line with expectations, with organic growth of ~9% excluding the $444M Informatica contribution. Non-GAAP EPS of $3.88 significantly exceeded consensus of $3.13 (+50% Y/Y), driven by revenue growth, margin expansion, and buybacks. The quarter's most compelling narrative centers on Agentforce's continued scaling, with ARR reaching $1.2B (+205% Y/Y) and 3.8B Agentic Work Units delivered (+111% Q/Q), demonstrating CRM's early leadership in enterprise AI. Management raised FY 27 revenue guidance to $45.9B-$46.2B and expressed confidence in organic acceleration during H2 driven by Sales, Service, Slack, Agentforce, and Data 360 growth. We believe the combined Agentforce and Data 360 ARR of $3.4B (+200% Y/Y) underscores strong platform adoption, with over 50% of bookings from existing customer expansion. However, it's important to note that Agentforce remains less than 5% of total sales, indicating AI is still in early innings despite promising metrics.

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Research Alert: Mrvl: Modest Beat And Raise; Custom Silicon And Optics To Drive Upside

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:MRVL posted Apr-Q revenue growth of 28% to $2.418B, slightly ahead of consensus, with non-GAAP EPS of $0.80 beating the $0.79 consensus and up from $0.62 in the prior-year quarter. The Data Center segment remains the primary growth engine, generating $1.833B (+27% Y/Y, +11% Q/Q) and representing 76% of total revenue. We believe strength is coming from AI-related bookings across 800G/1.6T scale-out optics, 51.2T Ethernet switches, and custom XPU solutions. Guidance exceeds expectations with Jul-Q revenue of $2.700B (5%), implying approximately 35% Y/Y growth, a modest acceleration from the pace in Apr-Q. Non-GAAP gross margin of 58.9% compressed 90 bps as expected, reflecting the strategic shift toward lower-margin custom silicon solutions in the expanding AI infrastructure market. The recently completed Celestial AI and XConn acquisitions are now contributing to results and positioning MRVL to capitalize on emerging optical interconnect opportunities.

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Research Alert: CFRA Maintains Hold Rating On Shares Of Veeva Systems Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month price target to $175 from $215, 19.7x our FY 27 EPS estimate, well below VEEV's historical average (3-year average of 34.5x) to reflect increased competitive threats, slower growth as the business matures, and a challenging macro environment for small/mid size biopharma customers, in our view. Our target is near the low end of VEEV's ten-year historical forward average trading range (~17.1x), much of which we attribute to longer-term investor concerns for application software businesses, though we think near-term fundamentals remain healthy. While VEEV is part of the health care technology sub-industry, we note that CFRA recently moderated our view on the application software sub-industry (part of the info tech sector) to neutral from positive, with rapid developments in AI capabilities shaking investor confidence in established SaaS businesses and posing elevated competitive risks. We keep our FY 27 EPS estimate at $8.85 and lower our FY 28 EPS estimate to $9.88 from $10.03.

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