Key Takeaways Blackbaud is embedding AI into fundraising, financial management and CSR platforms.BLKB raised 2025 revenue outlook to $1.120-$1.130B, with organic growth near 5%.Margin expansion and innovation remain key focuses as competition pressures pricing.Blackbaud, Inc. (BLKB) is leaning heavily on artificial intelligence (AI) and innovation to fuel its next phase of growth. The company has been steadily expanding its product portfolio, rolling out frequent updates and AI-driven capabilities to empowe ...

Core Insights - Salesforce, Inc. and HubSpot, Inc. are leading players in the CRM software market, targeting different segments; Salesforce focuses on large enterprises while HubSpot caters to small and mid-sized businesses [1][2] Salesforce Overview - Salesforce remains a dominant force in the CRM market, surpassing competitors like Microsoft, Oracle, and SAP, and is transitioning to a broader enterprise software provider with a focus on AI, data, and collaboration [3] - The introduction of Einstein GPT in 2023 has integrated generative AI into Salesforce's platform, enhancing automation, decision-making, and customer experience [4] - The launch of Agentforce, which has achieved $100 million in annualized revenues within two quarters, demonstrates Salesforce's innovation momentum, with over 4,000 customers utilizing it [5] - Despite its strengths, Salesforce is experiencing a slowdown in sales growth, with Q1 fiscal 2026 revenues increasing by only 7.7% year-over-year and non-GAAP EPS growing by 5.7% [6] - Analysts predict mid-to-high single-digit revenue growth for Salesforce in fiscal 2026 and 2027, with low double-digit growth in non-GAAP EPS [7] HubSpot Overview - HubSpot reported a robust 15.7% revenue growth in Q1, significantly outpacing Salesforce, and is focusing on AI tools and mid-market strategies to enhance growth forecasts through 2026 [8][11] - The company is heavily investing in AI features, workflow automation, and advanced reporting to attract larger mid-market customers, positioning itself for significant expansion as SMBs digitize operations [12] - HubSpot's App Marketplace facilitates customer-centric solutions, enabling seamless integration for businesses, which is likely to create more opportunities as companies adopt a digital-first approach [13] - Analysts forecast mid-teen percentage growth for HubSpot's revenues and non-GAAP EPS for 2025 and 2026, indicating a faster growth trajectory compared to Salesforce [14] Valuation Comparison - HubSpot trades at 8.75 times forward sales, while Salesforce trades at 5.84 times, reflecting HubSpot's higher growth momentum justifying its premium valuation [16] - Salesforce's lower valuation is attributed to its slowing sales growth and macroeconomic challenges [16] Investment Conclusion - While both companies have strong business models, Salesforce is facing growth challenges, whereas HubSpot is maintaining steady growth, making HubSpot a more attractive investment choice despite its higher valuation [18] - HubSpot currently holds a Zacks Rank 1 (Strong Buy), while Salesforce has a Zacks Rank 3 (Hold), indicating a preference for HubSpot among investors [19]

Core Insights - Salesforce, Inc. and Veeva Systems Inc. are prominent players in the cloud customer relationship management market, with Salesforce serving a broad range of industries and Veeva focusing exclusively on the life sciences sector [1][2] Salesforce Overview - Salesforce maintains a dominant position in the CRM market, surpassing competitors like Microsoft, Oracle, and SAP, and is transitioning to a broader enterprise software provider with a focus on AI, data, and collaboration [3][4] - The introduction of Einstein GPT in 2023 has integrated generative AI into Salesforce's platform, enhancing automation, decision-making, and customer experiences [4] - The recent launch of Agentforce, which has achieved $100 million in annualized revenues within two quarters, demonstrates Salesforce's growth momentum, with its Data Cloud also experiencing over 120% year-over-year growth in annual recurring revenues [5] - However, Salesforce is facing a slowdown in sales growth, with a revenue increase of only 7.7% and non-GAAP EPS growth of 5.7% in Q1 of fiscal 2026, attributed to cautious enterprise spending amid economic uncertainties [6][7] Veeva Systems Overview - Veeva Systems adopts a focused strategy, exclusively serving life sciences companies, which allows it to create specialized tools that are difficult to replace [8] - In Q1 of fiscal 2026, Veeva reported a non-GAAP EPS growth of 31.3% and a revenue increase of 16.7%, alongside a robust operating margin of 46.1% [9][11] - Veeva's Vault CRM, tailored for regulatory and healthcare needs, is currently utilized by over 80 clients and is expected to grow to 200 clients by next year, with ongoing expansion into data analytics and AI tools [10][12] - The company is expected to maintain strong demand for its products due to the essential nature of clinical trials and regulatory compliance in the pharmaceutical sector, even during economic downturns [12][13] Comparative Analysis - Veeva Systems is projected to have stronger growth potential, with Zacks Consensus Estimates indicating a revenue growth of 12.7% and EPS growth of 14.6% for fiscal 2026, compared to Salesforce's expected revenue growth of 8.6% and EPS growth of 10.8% [14] - In terms of valuation, Veeva trades at 35.92 times forward earnings, while Salesforce trades at 22.98 times, reflecting Veeva's higher growth momentum justifying its premium [15] - Year-to-date stock performance shows Veeva Systems has risen by 34%, while Salesforce shares have declined by 18.9%, indicating differing investor sentiment towards the two companies [16] Conclusion - Veeva Systems is positioned as the better investment choice currently, with its specialized tools, strong margins, and consistent growth in the life sciences sector, despite a higher valuation compared to Salesforce [19][20]

Group 1: Valuation and Market Position - Salesforce, Inc. (CRM) is currently trading at an attractive valuation, with a forward 12-month price-to-earnings (P/E) ratio of 23.2, lower than the Zacks Computer – Software industry average of 32.8 [2] - Compared to major competitors like Microsoft (MSFT), Oracle (ORCL), and SAP, Salesforce's stock is cheaper on a P/E basis, with MSFT at 31.92X, ORCL at 26.53X, and SAP at 41.78X [4][6] - Despite a decline in stock price of 18.5% year to date, Salesforce remains the leader in the global customer relationship management (CRM) software market, holding the largest market share according to Gartner [9][12] Group 2: Growth Challenges - Salesforce is facing slowing sales growth, with revenues rising only 7.7% in the first quarter of fiscal 2026, a significant drop from previous double-digit growth rates [4][5] - Analysts expect mid-to-high single-digit growth for fiscal 2026 and 2027, with EPS growth projected at a CAGR of 12.9% over the next five years, down from 27.8% in the previous five years [5][6] Group 3: Strategic Focus and Future Outlook - Salesforce's strategy includes a strong focus on AI, with the launch of its Einstein GPT product in 2023, which powers generative AI features across its platform [14] - The enterprise software segment, crucial for Salesforce, is projected to grow significantly, with a 93.9% increase expected, indicating steady demand for Salesforce's solutions despite short-term economic challenges [15] - Strategic acquisitions, such as Slack and Own Company, reflect Salesforce's long-term growth strategy in collaboration tools, cybersecurity, and AI automation [13]

Core Viewpoint - Salesforce is positioned as a stronger investment option compared to Adobe, driven by its focus on AI, unified platform strategy, and favorable earnings outlook [19]. Salesforce Overview - Salesforce dominates the customer relationship management market, maintaining the largest share according to Gartner [2]. - The company has expanded its platform through acquisitions, aiming to become a broader enterprise software provider focused on AI, data, and collaboration [3]. - AI is central to Salesforce's growth strategy, with the introduction of Einstein GPT in 2023 to enhance automation and customer experiences [4]. - The launch of Agentforce has generated $100 million in annualized revenues within two quarters, with over 4,000 customers utilizing it [5]. - Salesforce's annual recurring revenue (ARR) from Data Cloud has grown over 120% year over year [5]. - Despite an 8% year-over-year revenue growth in Q1 fiscal 2026, which is slower than previous years, adjusted EPS rose 6%, indicating operational soundness [6]. Adobe Overview - Adobe reported a 10% revenue increase to $5.71 billion in Q1 fiscal 2025, with non-GAAP EPS growing 13.4% to $5.08 [7]. - The company leads in creative software, with AI contributing significantly to growth, adding over $125 million in ARR last quarter [8]. - Adobe is expanding its AI offerings with tools like GenStudio and Firefly Services, aimed at enhancing marketing efficiency [9]. - The company plans to monetize Firefly through tiered pricing within Creative Cloud and is increasing sales efforts to various sectors [10]. - However, Adobe's second-quarter guidance indicates potential margin pressure, with expected non-GAAP EPS between $4.95 and $5.00, down from Q1 [11]. Earnings Estimates Comparison - Salesforce's earnings estimates have remained stable over the past 60 days, indicating confidence in its earnings stability [12]. - In contrast, Adobe's earnings estimates have been lowered, raising concerns about near-term profitability [12]. - Long-term earnings growth projections show Salesforce with a CAGR of 12.7%, slightly better than Adobe's 12.4% [14]. Price Performance and Valuation - Over the past year, Salesforce stock has increased by 26.7%, while Adobe shares have decreased by 7.5%, reflecting stronger investor confidence in Salesforce [16]. - From a valuation perspective, Salesforce trades at 6.32 times forward sales, compared to Adobe's 7.17 times, suggesting more upside potential for Salesforce [17].

Core Viewpoint - Salesforce is expected to report strong first-quarter fiscal 2026 results, with projected revenues between $9.71 billion and $9.76 billion, indicating a 6.6% year-over-year increase [1][5] Revenue and Earnings Estimates - Total revenue estimate for the first quarter is pegged at $9.74 billion, reflecting a 6.6% increase from the previous year [1] - Non-GAAP earnings per share are anticipated to be in the range of $2.53 to $2.55, with a consensus estimate of $2.54, representing a 4.1% increase year-over-year [2] Earnings Performance - Salesforce has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 4.4% [3] - The Earnings ESP is +0.76%, indicating a potential earnings beat this quarter [4] Growth Drivers - The company is well-positioned for strong results due to its focus on digital transformation and cloud solutions, aligning product offerings with customer needs [5] - Growing demand for generative AI-enabled cloud solutions has enhanced customer engagement and competitive positioning [6] - Salesforce's expansion in key geographic markets and the public sector has unlocked new growth opportunities [7] Strategic Acquisitions - Recent acquisitions, including Spiff, Own, and Zoomin, have diversified revenue streams and enhanced capabilities, likely driving higher subscription revenues [8] - Revenue estimates for key cloud services include $2.14 billion for Sales, $2.34 billion for Service, $1.84 billion for Platform & Other, $1.35 billion for Marketing & Commerce, and $1.54 billion for Data [9] Profitability and Cost Management - Ongoing cost restructuring initiatives are expected to improve profitability, with a non-GAAP operating margin of 33.1% reported in the previous quarter [10] Market Performance and Valuation - Over the past year, Salesforce shares have risen 1.4%, underperforming the Zacks Computer – Software industry growth of 10.4% [11] - The stock is trading at a forward 12-month P/S of 6.48X, compared to the industry average of 9.25X, indicating a discount [14] Competitive Position - Salesforce maintains its leadership in the customer relationship management industry, consistently outperforming competitors like Microsoft, Oracle, and SAP [17] - Strategic acquisitions, such as the $27.7 billion acquisition of Slack, have enhanced its market position [18] - AI initiatives, including the introduction of Einstein GPT, have expanded its functionalities and improved customer interactions [19] Industry Outlook - Global IT spending is projected to reach $5.61 trillion in 2025, with enterprise software spending expected to grow by 14.2% year-over-year, positioning Salesforce to capture a significant share of this growth [20] Conclusion - The company's leadership in CRM, aggressive AI expansion, and favorable IT spending trends create a solid foundation for sustained growth, making the stock worth holding ahead of Q1 results [21]

Core Viewpoint - Salesforce, Inc. (CRM) has experienced a significant share price increase of 13.5% over the past month, outperforming the broader Zacks Computer and Technology sector which gained 11.3% during the same period [1][3]. Market Dynamics - The recent rally in Salesforce's stock is attributed to broader market optimism stemming from progress in U.S.-China trade negotiations, which have improved investor sentiment since late April [3][5]. - A recent trade deal between the U.S. and China has led to a temporary reduction in tariffs, with the U.S. lowering tariffs on Chinese imports from 145% to 30%, and China reducing duties on U.S. imports from 125% to 10% for 90 days [4][5]. Competitive Position - Salesforce remains the leading company in the customer relationship management (CRM) software market, holding the largest market share according to Gartner's rankings, and is expected to maintain this dominance [7]. - The company has developed a comprehensive ecosystem that integrates across enterprise applications, with strategic acquisitions like Slack and Own Company aimed at expanding its reach into enterprise collaboration, data security, and AI-driven automation [8]. Growth Drivers - AI is a crucial component of Salesforce's growth strategy, with the launch of Einstein GPT in 2023 embedding generative AI capabilities across its platform, enhancing customer interactions and workflow automation [9]. - Global spending on generative AI is projected to reach $644 billion by 2025, representing a 76.4% year-over-year increase, with enterprise software expected to grow even faster at 93.9% [10]. Valuation - Despite the recent stock rally, Salesforce shares are trading at a forward 12-month price-to-earnings (P/E) multiple of 25.24X, which is below the industry average of 31.77X, indicating a reasonable valuation [11]. Sales Growth Concerns - Salesforce is facing challenges with slowing revenue growth, which has decreased from double-digit rates to single-digit increases in recent quarters, reflecting cautious enterprise spending amid economic uncertainty [13]. - Analysts expect mid-to-high single-digit growth for fiscal years 2026 and 2027, indicating a shift in enterprise behavior towards smaller projects rather than large-scale transformations [13][15]. Conclusion - Salesforce is positioned as a dominant player in enterprise software with strong AI capabilities and a reasonable valuation, supported by long-term trends in AI adoption and digital transformation [16]. - Although there are concerns regarding slowing sales growth, the company is anticipated to recover strongly once macroeconomic conditions improve, making it advisable for long-term investors to hold the stock [16][17].

Core Viewpoint - Salesforce is positioned as the better investment choice compared to Oracle, driven by its accelerated growth in AI, unified platform strategy, and superior profitability growth prospects [19]. Group 1: Company Overview - Salesforce and Oracle are major players in the cloud enterprise software market, offering platforms for customer relationship management, enterprise resource planning, database management, and AI-powered solutions [1][2]. - Both companies have significantly transformed business operations, customer relationships, and data management [2]. Group 2: Salesforce Analysis - Salesforce is the leader in the customer relationship management software market, consistently outperforming competitors like Microsoft and Oracle [3]. - The company has expanded its ecosystem through acquisitions, including Slack and Zoomin, to enhance its offerings beyond CRM into collaboration, data security, and AI automation [4]. - AI is central to Salesforce's growth strategy, with the launch of Einstein GPT in 2023 embedding generative AI capabilities across its platform [5]. - Salesforce's AI and Data Cloud revenues grew 120% year-over-year in fiscal 2025, with over 3,000 paid Agentforce deals closed within 90 days of launch [6]. - Despite a slowdown in overall revenue growth to 7.5% year-over-year in Q4 fiscal 2025 due to macroeconomic factors, adjusted earnings per share increased by 21.4%, indicating effective cost management [7]. Group 3: Oracle Analysis - Oracle's cloud infrastructure business saw a 49% year-over-year revenue growth in Q3 fiscal 2025, with demand for AI training GPUs increasing by 244% [8]. - The company launched AI Agent Studio to help businesses create and manage AI agents, building on existing AI capabilities in its Fusion Applications [9]. - Oracle's multi-cloud strategy is expanding, with its Database@Azure service growing 92% in Q3, indicating successful partnerships with major tech companies [10]. - However, Oracle faces challenges with rising capital expenditures, projected at $16 billion for the fiscal year, and supply chain delays affecting cloud capacity expansion [11][12]. - Overall revenue growth for Oracle was modest at 6.4% year-over-year in Q3, with non-GAAP EPS increasing by only 4.3%, missing consensus estimates [13]. Group 4: Earnings Estimates Comparison - Salesforce has a better earnings surprise history, surpassing consensus estimates three times in the last four quarters with an average surprise of 4.4% [14]. - In contrast, Oracle missed consensus estimates three times in the same period, with an average surprise of only 0.8% [16]. - Analysts are more optimistic about Salesforce's profitability, with its long-term expected earnings growth at 12.7%, compared to Oracle's 9.7% [18].

Core Viewpoint - Salesforce, Inc. (CRM) has experienced a significant stock decline of 20.7% year to date, underperforming the broader Zacks Computer – Software industry which fell 8.8% during the same period, raising questions about whether investors should exit or hold onto their investments [1] Group 1: Recent Performance and Market Conditions - The recent slump in Salesforce's stock is attributed to a broader tech pullback driven by fears of an escalating tariff war and slowing economic growth, compounded by disappointing fourth-quarter fiscal 2025 results [2] - Salesforce's revenue grew 7.5% year over year to $9.99 billion, slightly missing the Zacks Consensus Estimate, with guidance indicating a potential slowdown in first-quarter and full-fiscal 2026 revenue growth to 6-8% [3] - Enterprise customers are tightening IT budgets due to economic uncertainty, which is expected to persist, with the Zacks Consensus Estimate predicting year-over-year revenue growth of 7.6% in fiscal 2026 and 9.3% in fiscal 2027 [4] Group 2: Market Position and Growth Potential - Despite slower growth, Salesforce remains the leader in enterprise customer relationship management (CRM) software, holding the largest market share and outpacing competitors like Microsoft, Oracle, and SAP [6] - The company has developed an extensive ecosystem that integrates across enterprise applications, with acquisitions like Slack and Own Company reflecting a strategy to expand into collaboration, data security, and AI-driven automation [7] - AI is a crucial component of Salesforce's growth strategy, with the launch of Einstein GPT in 2023 embedding generative AI capabilities across its platform, positioning the company to benefit from the accelerating adoption of generative AI [9] Group 3: Valuation and Investment Outlook - Salesforce's stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 23.31x, below the industry average of 27.82x, indicating that much of the near-term pessimism is already priced in [11] - Compared to industry peers, Salesforce's P/E multiple is lower than Microsoft (27.25x), ANSYS (25.93x), and SAP (37.42x), suggesting a more attractive valuation [14] - Given its dominant market position, ongoing AI initiatives, and strong long-term growth potential, the recent stock pullback does not warrant an exit from Salesforce [15][16]

Salesforce, Inc. (CRM) has taken a sharp hit, sliding more than 15% over the past month. This drop significantly underperforms the broader Zacks Computer – Software industry, which fell 9% during the same period. Compared to key competitors like Microsoft Corporation (MSFT) , SAP SE (SAP) and Adobe Inc. (ADBE) , Salesforce’s slump appears even more pronounced.One-Month Price Return PerformanceImage Source: Zacks Investment ResearchThis steep decline raises the question: Should investors cut their losses and ...