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Salesforce Demand, Backlog Strength Seen Supporting Growth, Wedbush Says

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Salesforce (CRM) may use its fiscal Q1 results to highlight strengthening AI demand, steady backlog conversion, stable guidance, and support from its share-buyback program, Wedbush Securities said Friday in a report.

The earnings release due Wednesday is a key moment as investors remain concerned that AI may pressure parts of the software sector, the report said. Wedbush argued that Salesforce's Agentforce, Data 360, and its integration with Informatica position the company as a long-term AI beneficiary, given its large installed base and entrenched data and workflow tools.

Consensus estimates of $11.05 billion in revenue and $3.13 in earnings per share appear beatable, helped by strong remaining performance obligations, the report said.

Salesforce's $25 billion accelerated stock buyback should reduce share count and support earnings per share through fiscal 2027, the report said.

Wedbush maintained its outperform rating on Salesforce stock and its $325 price target, saying the market continues to undervalue Salesforce's core business and AI opportunity.

Price: $177.99, Change: $+1.68, Percent Change: +0.95%

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Salesforce Demand, Backlog Strength Seen Supporting Growth, Wedbush Says | FINWIRES