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Salesforce Fiscal Second-Quarter Results Likely to Show Solid Progress in Key Areas, Truist Says

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Salesforce Fiscal Second-Quarter Results Likely to Show Solid Progress in Key Areas, Truist Says

Salesforce (CRM) is likely to show solid progress in key areas in its fiscal second-quarter results, with organic growth expected to improve in the coming quarters, Truist Securities said in a Tuesday client note.

The brokerage expects areas that remained resilient in the first quarter to continue showing strength in the second quarter, including innovations from Slack, helping offset weakness in the marketing cloud, commerce cloud and Tableau businesses.

Truist said it remains "stubbornly positive" on Salesforce despite negative sentiment surrounding a second-half acceleration in organic growth and doubts over agentic artificial intelligence becoming a material catalyst, among other concerns.

"We assume (second-quarter) performance in strategically important areas progressed solidly, while improving organic growth going forward on the back of favorable (net new annual order value) trends points to an attractive setup for value-centric investors," Truist Managing Director Terry Tillman wrote in the note.

Salesforce is scheduled to release its latest financial results after the markets close Wednesday. The current consensus on FactSet is for the company to post non-GAAP EPS of $3.27 and sales of $11.33 billion for the second quarter.

The brokerage estimates the company to continue to record triple-digit annual recurring revenue growth in its Agentforce AI platform and Data 360 customer data platform, after achieving annual gains of 200% in the first quarter.

"We expect positive commentary around increased adoption of agentic workloads, Agentforce One and continued strong uptake with Agentforce for App premium (stock keeping units) associated with sales and service," according to Tillman.

Agentforce is Salesforce's artificial intelligence-powered platform designed to automate tasks.

Truist believes Salesforce can accelerate organic revenue growth from roughly 6% year over year in the second quarter, increase by "a point or more" in the third quarter, and exit the year at roughly 9.5% organic growth.

Truist reiterated its buy rating on Salesforce's stock with a price target of $280.

Last week, Oppenheimer said the firm faces a favorable setup heading into its second-quarter results, with upside potential amid robust Agentforce adoption and usage trends.

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