salesforce(US:CRM) ZACKS·2025-09-01 15:46Core Insights - Salesforce, Inc. (CRM) is expected to report its second-quarter fiscal 2026 earnings on September 3, focusing on the performance of its AI and cloud initiatives [1][11] - The company is anticipated to show steady growth in revenues and profits despite a challenging macro environment [2][10] AI and Cloud Strategy - Salesforce's cloud-based model aligns well with the current work environment, making it a strong player in enterprise software [3] - The introduction of AI tools like Einstein Analytics and generative AI features is expected to significantly enhance customer engagement and automation, providing a competitive edge [4][11] - The company's diverse product offerings, including sales, marketing, and customer service tools, help maintain stability even when some sectors reduce software spending [5] Global Expansion - Salesforce is expanding into international markets, particularly in Europe and the Asia-Pacific region, to meet the rising demand for digital tools [6][7] - Many businesses in these regions are at the beginning of their digital and AI transformations, positioning Salesforce's products as flexible and scalable solutions [7] Economic Challenges - Despite growth, Salesforce faces challenges from the broader economic slowdown, particularly as smaller businesses, a key customer segment, are tightening their budgets [8] - The company has noted that deal closures are taking longer, which may impact revenue recognition and deal sizes [9] Financial Performance - The Subscription and Support segment is projected to generate approximately $9.61 billion in the quarter, reflecting a year-over-year increase of 9.6% [10] - Salesforce's focus on improving profitability through cost-cutting and operational efficiency has led to increased earnings despite slower revenue growth [12] - The anticipated non-GAAP earnings per share for the second quarter is expected to be between $2.76 and $2.78, indicating an 8.2% increase from the previous year [14]