Salesforce.com stock price target lowered to $250 at RBC on mixed outlook

Investing.com - RBC Capital lowered its price target on salesforce.com (NYSE:CRM) to $250 from $275 on Thursday, while maintaining a Sector Perform rating following the company’s second-quarter results. According to InvestingPro data, analyst targets for the stock range from $221 to $430, with the company maintaining a strong "Buy" consensus recommendation.

The cloud-based software provider reported strong quarterly performance with beats across all key metrics, highlighted by continued momentum in its Data Cloud and AI offerings, which reached over $1.2 billion in annual recurring revenue, growing 120% year-over-year. The company’s impressive gross profit margin of 77.3% underscores its operational efficiency, one of several key metrics available on InvestingPro.

Platform and Integration segments showed solid growth at 16% and 12% constant currency respectively, helping to offset softer performance in Marketing and Commerce, which grew just 3% in constant currency terms. Both small and medium-sized business customers and large deal activity contributed positively to bookings.

Management modestly raised its fiscal year 2026 guidance for revenue, margin, and operating cash flow, while also expanding its share repurchase program by $20 billion to a total of $50 billion.

Despite these positive developments, RBC maintained its neutral stance as third-quarter guidance merely aligned with consensus expectations, limiting near-term upside potential. Salesforce shares fell 6% in after-hours trading following the announcement.

In other recent news, Salesforce reported its second-quarter earnings, showcasing a 9% revenue growth and 10% growth in its current remaining performance obligation (cRPO). The company achieved non-GAAP operating margins of 34.3%, reflecting approximately 60 basis points of operating leverage. Salesforce maintained its fiscal year 2026 revenue outlook while raising guidance for operating cash flow and free cash flow. Despite these results, several analyst firms adjusted their price targets for the company. Piper Sandler lowered its price target to $315, citing foreign exchange concerns, while Wells Fargo reduced its target to $265 due to slower-than-anticipated AI adoption. JPMorgan also lowered its price target to $365, noting that Salesforce’s results exceeded expectations. Canaccord Genuity adjusted its target to $300, highlighting steady growth. UBS maintained a Neutral rating with a $260 price target after Salesforce’s earnings met expectations. These developments reflect diverse analyst perspectives on Salesforce’s future performance.

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