Salesforce.com (CRM) Earnings Expected to Grow: Should You Buy?

Ahead of its earnings release on May 28, Salesforce.com (CRM) is expected to report a 4.1% year-over-year increase in earnings to $2.54 per share on revenues of $9.74 billion, a 6.6% increase. The Zacks Earnings ESP model indicates a likely earnings beat, driven by a positive Earnings ESP of +0.76% and a Zacks Rank #3, suggesting analysts have become more bullish recently; however, investors should consider broader market factors beyond just the earnings result.

Analysis

Salesforce.com (CRM) is anticipated to report its financial results for the quarter ended April 2025 on May 28, with consensus estimates pointing to year-over-year growth. Wall Street expects earnings of $2.54 per share, an increase of 4.1%, on revenues of $9.74 billion, up 6.6% from the prior-year quarter. The consensus EPS estimate has edged 0.03% higher over the last 30 days, reflecting a slight positive shift in analyst sentiment. Further bolstering the outlook, Salesforce.com has a Zacks Earnings ESP (Expected Surprise Prediction) of +0.76% and a Zacks Rank #3 (Hold). This combination, according to Zacks' research, indicates a high likelihood—nearly 70%—of an earnings beat. The positive ESP suggests that the Most Accurate Estimate, reflecting more recent analyst revisions, is higher than the broader consensus, hinting at recently increased bullishness. Historically, Salesforce.com has demonstrated a capacity to outperform expectations, having beaten consensus EPS estimates in three of the last four quarters, including a +6.92% surprise in the last reported quarter. While these quantitative indicators are favorable for an earnings beat, the market's reaction will also critically depend on management's commentary on business conditions and forward guidance provided during the earnings call.

Key Decisions for Investors

• Investors should acknowledge the strong probability of Salesforce.com surpassing its consensus EPS estimate, underpinned by its positive Earnings ESP, Zacks Rank #3, and consistent history of earnings beats.
• It is crucial to meticulously analyze management's discussion of business conditions and future outlook during the earnings call, as these qualitative factors will heavily influence the stock's sustained price movement beyond the initial earnings figures.
• While an earnings beat appears probable, maintain awareness that other market dynamics and the specifics of the forward guidance can significantly impact the stock, irrespective of the headline earnings result.