Salesforce Earnings Preview: Can It Finally Move Past Its Ai-Driven Challenges?

Salesforce Inc (NYSE:CRM) is expected to announce an 8.8% rise in revenue for the third quarter, largely fueled by robust growth in its subscription and support sector. Nonetheless, the company’s shares have seen a considerable drop this year amidst wider industry challenges.

Key Highlights

• Salesforce is striving to enhance its AI offerings with the launch of its new product, Agentforce. Investors have been cautious regarding the timeline and extent of AI’s impact on the company’s financial performance, contributing to a challenging year for its stock despite CRM consistently exceeding earnings forecasts. Attention is now focused on the growth of Agentforce and the revenue generated from AI initiatives.
• The company is exploring acquisitions to drive growth, especially in the AI sector. Earlier this year, the company announced plans to acquire data-management software provider Informatica in an $8 billion deal. In September, Chief Executive Marc Benioff indicated that he would contemplate using resources from a recently expanded share buyback program to finance additional acquisitions.
• CRM experienced an extraordinary period of high sales growth from its founding in 1999 until 2022, maintaining over 20% growth throughout. However, as its leading customer relationship management software approached saturation, annual growth began to decline, hitting 8.7% in fiscal year 2025 (ending January). So far in fiscal year 2026, sales have also increased by 8.7% compared to the previous year.
• The company’s 94% subscription-based revenue model ensures highly predictable cash flows, which facilitates steady growth in operating cash flow and enhances financial flexibility.
• Revenue growth has slowed to single digits, with 8.8% in Q3 FY26 and 9.8% in Q2 FY26, a notable decline from previous double-digit rates, which has sparked concerns about long-term sustainability. Additionally, the stock has significantly underperformed in 2025, dropping nearly 29% year-to-date and 28% year-over-year, reflecting investor skepticism regarding growth prospects and valuation issues.

Analysts Expectation

• Citizens analysts maintained a Market Outperform rating for CRM and set a price target of $430.00.
• Oppenheimer has lowered its price target on salesforce.com to $300.00 from $315.00, while still maintaining an Outperform rating on the stock.
• KeyBanc analysts reaffirmed an Overweight rating for salesforce.com and set a price target of $400.00.

CRM Q3 2025 earnings post-market (4:00 pm ET) Wednesday, Dec 03, 2025

Technical Analysis Perspective

• CRM is trading around a key support zone between 232 -227 which has been robust base since December 2024.
• A rise to 245 -253 is on the way provided 232 – 227 floor remains intact.
• A strong break below the highlighted support region would trigger a dip to 212 and 206.

Weekly Candlestick Chart

CRM Seasonality Chart:

Since 2006, CRM has seen December close with a -0.8% decline in 40% of years and January with a 4.3% rise in 65% of years.

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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.