Salesforce (CRM) heads into the fiscal Q2 print with a favorable earnings setup, supported by robust net new Agentforce and data cloud annual recurring revenue trends, Oppenheimer said in a Thursday research report.
For fiscal Q2, the brokerage said it expects EPS of $3.26 on revenue of $11.31 billion. It added that channel checks indicated mixed trends for business activity and pipeline momentum, but targets look achievable with low expectations and robust usage trends. The company will report fiscal Q2 results next week.
Agentforce cycle is evolving from broad-based testing initiatives to returns justification, which is increasing deal size, but slowing down the trend of customers ramping deployments to scaled production levels, according to the note.
The brokerage said it reiterated its outperform rating on the stock and price target of $250 per share.
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