Salesforce Q3 Preview: Record Revenue Predicted, Can Shares Recover After 30% Drop In 2025?

Core Viewpoint - Salesforce Inc. is expected to report strong third-quarter financial results, with a focus on AI-related tools and recent acquisitions, which may influence investor sentiment and stock performance [1][9]. Earnings Estimates - Analysts predict Salesforce will report third-quarter revenue of $10.27 billion, an increase from $9.44 billion in the same quarter last year [2]. - The company has consistently exceeded revenue estimates, achieving record revenue of $10.24 billion in the second quarter [2]. - Earnings per share (EPS) are expected to be $2.86, up from $2.41 in the previous year’s third quarter, with guidance suggesting a range of $2.84 to $2.86 [3]. Expert Opinions - Jay Woods from Freedom Capital Markets expressed caution regarding Salesforce's AI initiatives, noting that the company is under scrutiny for its ability to monetize AI [4]. - Woods highlighted that if Salesforce reports slower growth or weaker guidance, it could lead to a reassessment of the company's future trajectory [5]. - The stock chart indicates potential downside pressure, with the $230 level being a critical point to watch [5]. Analyst Ratings and Price Targets - Citizens maintains a Market Outperform rating with a price target of $430 [7]. - Oppenheimer has lowered its price target from $315 to $300 while maintaining an Outperform rating [7]. - Citigroup has reduced its price target from $276 to $253, maintaining a Neutral rating [7]. - Cantor Fitzgerald reiterates an Overweight rating with a price target of $325 [7]. - Bank of America has lowered its price target from $325 to $305 while maintaining a Buy rating [7]. Recent Performance and Guidance - Salesforce reported a 10% year-over-year revenue growth in the second quarter, with remaining performance obligations of $29.4 billion [8]. - Despite raising full-year revenue and EPS guidance, investor sentiment remains cautious, with expectations for higher numbers [9]. - The company's recent acquisitions, including Informatica, Doti, and Spindle AI, may positively impact future guidance [10][11]. Stock Performance - Salesforce stock is currently trading at $235.71, up 1.2% on Tuesday, but has decreased by 29.5% year-to-date in 2025 [12].