Salesforce (NYSE:CRM) Trading Up 3.7% on Earnings Beat

Shares of Salesforce Inc. (NYSE:CRM) were up 3.7% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $192.60 and last traded at $192.1910. Approximately 20,147,353 shares traded hands during mid-day trading, an increase of 67% from the average daily volume of 12,056,347 shares. The stock had previously closed at $185.42.

The CRM provider reported $3.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.05 by $0.76. The company had revenue of $11.20 billion for the quarter, compared to analysts’ expectations of $11.18 billion. Salesforce had a net margin of 17.91% and a return on equity of 14.41%. The firm’s quarterly revenue was up 12.1% on a year-over-year basis. During the same period in the prior year, the business earned $2.78 EPS. Salesforce has set its FY 2027 guidance at 13.110-13.190 EPS and its Q1 2027 guidance at 3.110-3.130 EPS.

Salesforce Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 23rd. Investors of record on Thursday, April 9th will be issued a dividend of $0.44 per share. The ex-dividend date of this dividend is Thursday, April 9th. This is a positive change from Salesforce’s previous quarterly dividend of $0.42. This represents a $1.76 annualized dividend and a yield of 0.9%. Salesforce’s dividend payout ratio is 22.16%.

Key Stories Impacting Salesforce

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Adjusted Q4 earnings topped expectations — Salesforce reported an adjusted EPS beat and revenue roughly in line with consensus, showing continued margin progress and revenue growth year-over-year. Q4 results & transcript
• Positive Sentiment: Management raised forward profit targets: Q1 FY2027 EPS guidance of $3.110–$3.130 and FY2027 EPS guidance of $13.110–$13.190 both materially exceed Street consensus — a clear positive signal for future EPS trajectory (company guidance released 2/25/2026).
• Positive Sentiment: Large shareholder-friendly action — Salesforce committed to a sizable buyback program (reported as ~$50 billion), which supports EPS and provides a backstop for the stock. Buyback coverage
• Neutral Sentiment: Revenue guidance mixed but broadly in-line: Q1 revenue guidance of $11.0–$11.1B is at/just above consensus, while FY revenue guidance ($45.8–$46.2B) centers near the Street forecast — supports stable top-line growth though not a clear upside catalyst. Revenue outlook
• Neutral Sentiment: Operating cash flow strength — cash from operations jumped year-over-year (helping liquidity), even as cash balances and liabilities shifted; useful context for buybacks and capital allocation decisions. Cash flow and balance-sheet details
• Negative Sentiment: After-hours weakness and investor caution — despite the EPS beat, shares slid after hours as participants focused on revenue nuances and the company’s “stable” top‑line growth outlook; some analysts trimmed targets or downgraded, putting downward pressure on the stock. After-hours reaction
• Negative Sentiment: AI disruption narrative and sentiment risk — ongoing market anxiety that generative AI could displace parts of the enterprise software stack continues to weigh on valuation multiples for Salesforce and peers, contributing to volatility. AI concerns coverage
• Negative Sentiment: Insider/analyst dynamics — large insider share sales reported and mixed analyst moves (some price-target cuts despite buy ratings from others) add short-term selling pressure and uncertainty about near-term sentiment. Insider & analyst activity

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on CRM shares. UBS Group cut their price target on Salesforce from $260.00 to $200.00 and set a “neutral” rating on the stock in a report on Tuesday, February 17th. Wells Fargo & Company reduced their target price on shares of Salesforce from $265.00 to $235.00 and set an “equal weight” rating for the company in a report on Wednesday, February 18th. The Goldman Sachs Group initiated coverage on shares of Salesforce in a research report on Monday, January 12th. They set a “buy” rating and a $330.00 price target for the company. BTIG Research lowered their price target on shares of Salesforce from $335.00 to $260.00 and set a “buy” rating on the stock in a report on Wednesday, February 18th. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of Salesforce in a research note on Thursday, December 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $301.56.

Insider Activity at Salesforce

In other news, Director Neelie Kroes sold 3,893 shares of Salesforce stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $238.70, for a total transaction of $929,259.10. Following the completion of the sale, the director directly owned 7,299 shares in the company, valued at approximately $1,742,271.30. The trade was a 34.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Parker Harris sold 134,662 shares of the business’s stock in a transaction on Tuesday, December 2nd. The shares were sold at an average price of $234.70, for a total transaction of $31,605,171.40. Following the sale, the insider directly owned 139,767 shares in the company, valued at $32,803,314.90. This trade represents a 49.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 3.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Tempo Wealth LLC purchased a new stake in Salesforce in the fourth quarter valued at approximately $1,134,000. Thryve Wealth Management LLC purchased a new stake in shares of Salesforce in the 4th quarter valued at $446,000. MidFirst Bank acquired a new stake in shares of Salesforce in the fourth quarter worth $6,495,000. DGS Capital Management LLC increased its stake in shares of Salesforce by 90.6% in the fourth quarter. DGS Capital Management LLC now owns 1,683 shares of the CRM provider’s stock worth $446,000 after acquiring an additional 800 shares during the period. Finally, Avory & Company LLC purchased a new position in shares of Salesforce during the fourth quarter worth $687,000. 80.43% of the stock is currently owned by hedge funds and other institutional investors.

Salesforce Stock Up 3.7%

The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $180.08 billion, a price-to-earnings ratio of 25.66, a P/E/G ratio of 1.26 and a beta of 1.27. The business’s 50-day moving average is $226.45 and its 200-day moving average is $238.86.

About Salesforce

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.