Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Stifel analysts revised the price target for Salesforce.com (NYSE:CRM) shares, bringing it down to $375 from the previous $425, while maintaining a Buy rating. The company, currently valued at $294 billion, maintains strong financial fundamentals with a perfect Piotroski Score of 9, according to InvestingPro data. The adjustment comes after Salesforce reported its fourth fiscal quarter earnings, which included quarter-over-quarter CRPO acceleration (excluding foreign exchange factors), a range of AI announcements highlighting the initial success of Agentforce, and forecasts for first-quarter CRPO and fiscal year 2026 subscription revenue that met expectations.
Despite some challenges related to foreign exchange and Professional Services affecting the overall revenue outlook, Stifel analysts believe the after-hours decline in Salesforce stock, which fell approximately 6%, was an exaggerated response to the company’s performance and guidance. This view aligns with InvestingPro’s Fair Value analysis, which suggests Salesforce is currently undervalued, while maintaining impressive gross profit margins of 77%. The analysts emphasize Salesforce’s strong position in Agentic AI and its potential to sustain growth while expanding margins and free cash flow.
Management at Salesforce has set conservative expectations for Agentforce’s revenue contribution in fiscal year 2026 but anticipates that momentum will build over the course of the year, leading to a more significant impact in fiscal year 2027. Furthermore, the presence of Agentforce appears to be positively influencing other areas of the business that are not directly related to AI. Stifel analysts expect this positive trend to persist into fiscal year 2026, supporting the company’s growth trajectory, which is evidenced by its current revenue growth of 9.5%. For deeper insights into Salesforce’s AI initiatives and growth potential, access the comprehensive Pro Research Report available on InvestingPro, along with 12 additional ProTips and extensive financial metrics.
In other recent news, Salesforce Inc. reported its fourth-quarter earnings for 2025, exceeding analysts’ expectations with an earnings per share (EPS) of $2.78, compared to the forecast of $2.61. However, the company’s revenue came in slightly below expectations at $10 billion, against the anticipated $10.4 billion. Despite the earnings beat, the company’s stock experienced a decline in after-hours trading. Salesforce’s full-year revenue grew by 9% year-over-year, reaching $37.9 billion, with a notable operating cash flow increase of 28%. Analyst firms have adjusted their price targets for Salesforce, with Loop Capital Markets lowering it to $300 and maintaining a Hold rating, and Canaccord Genuity reducing it to $400 while keeping a Buy rating. Raymond (NSE:RYMD) James also revised its price target to $375, maintaining a Strong Buy rating. These adjustments reflect mixed reactions to Salesforce’s fiscal year 2026 guidance, which some analysts found less optimistic. The company’s recent developments include the launch of AgentForce, contributing to innovative growth, and a significant increase in its Data Cloud and AI annual recurring revenue, which grew 120% year-over-year.
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