IT stock under ₹50 jumps 7% after securing 5-year deal for fraud management software and other services in Europe
Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $325.00 price target on salesforce.com (NYSE:CRM) following the company’s fiscal third-quarter results. This target represents significant upside from the current price of $238.72, aligning with InvestingPro data showing Salesforce is currently trading 35% below its 52-week high of $369.
The cloud software giant delivered results largely in line with expectations, showing upside in contracted revenue pipeline (cRPO), billings, and operating margin, while cash flow from operations came in slightly below Street estimates. Management subsequently raised its full-year cash flow guidance by 100 basis points. Notably, Salesforce maintains impressive gross profit margins of 77.65% and boasts a perfect Piotroski Score of 9, according to InvestingPro data, indicating strong financial health.
Revenue growth was driven by better-than-expected performance in Service and Sales Clouds, with significant upside in the Platform & Other segment due to strong contributions from Agentforce and Data 360. These gains helped offset slower performance in the Integration & Analytics segment.
Looking forward, Salesforce raised both its fourth-quarter and fiscal year 2026 guidance, with the full-year revenue midpoint increasing by approximately $250 million. This increase largely reflects the contribution from the Informatica acquisition, which accounts for about 80 basis points of growth. With a market capitalization of $227.26 billion, Salesforce continues to trade at a premium P/E ratio of 34.58, reflecting high growth expectations.
Management expressed optimism about Agentforce, which grew 330% and now represents $540 million in annual recurring revenue (ARR), with expectations for continued elevated growth levels over the next several quarters or potentially years. InvestingPro analysis suggests Salesforce is undervalued relative to its Fair Value, offering potential upside for investors interested in this prominent player in the software industry. For deeper insights, check out the comprehensive Pro Research Report available for CRM and 1,400+ other US equities.
In other recent news, Salesforce has reported its fiscal third-quarter results, showcasing solid performance and growth in its artificial intelligence segment. The company achieved a revenue increase of 8% in constant currency, aligning with expectations, while earnings per share of $3.25 surpassed guidance. Notably, Salesforce’s current remaining performance obligation (cRPO) grew by 11% in constant currency, exceeding estimates by 200 basis points. Analysts have responded positively, with Oppenheimer maintaining an Outperform rating and a $300 price target, emphasizing AI growth. Needham also reiterated a Buy rating with a $400 price target, citing the strong performance of Salesforce’s Agentforce product. However, Evercore ISI adjusted its price target to $340 from $360, maintaining an Outperform rating, while Wolfe Research lowered its target to $300 but upheld an Outperform rating. Raymond James continues to support Salesforce with a Strong Buy rating and a $375 price target, highlighting the traction of Agentforce despite timing dynamics affecting revenue. These developments reflect a broadly positive outlook from analysts, underscoring Salesforce’s robust performance in the recent quarter.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.