(Part 2 of 5) Earnings Calendar - Salesforce on offer?
Earnings Calendar (25May2026)
This section highlights several of the most closely watched earnings releases for the coming week, including Salesforce, Dell, UiPath, Costco, Baidu, and Best Buy.
Salesforce Snapshot
The stock price has fallen 34% from a year ago. The Technical Analysis sentiment remains “Neutral”. Analysts’ sentiment remains positive with a “Buy” rating. With a price target of $282.27, there is a potential upside of over 45%.
Salesforce continues to show solid top-line growth, stronger profitability, and robust cash generation over the past several years. The key financial trends are summarised below.
Profitability
Total revenue increased from $26.4B in 2022 to $41.5B in 2026, while gross profit rose from $19.4B to $32.2B over the same period.
Net income also improved significantly, increasing from $1.4B in 2022 to $7.4B in 2026.
Balance Sheet
Total current assets increased from $22.8B in 2022 to $28.2B in 2026.
Total assets grew from $95.2B in 2022 to $112.3B in 2026.
Total liabilities rose from $37.0B in 2022 to $53.1B in 2026.
Total debt increased from $14.3B in 2022 to $17.7B in 2026.
Cash Flow and Capital Allocation
Cash flow from operations increased from $6.0B in 2022 to $14.9B in 2026, underscoring the company’s strong cash-generating ability.
It is also encouraging to see balance sheet discipline, alongside common stock repurchases amounting to $12.9B in 2026.
Levered free cash flow also expanded strongly over the past five years, rising from $8.7B in 2022 to $16.3B in 2026.
Q1/2026 news around Salesforce (by Gemini)
Salesforce delivered a strong performance for the first quarter of fiscal year 2026, driven by intense momentum in its enterprise AI offerings. Total revenue rose 8% year-over-year to $9.8 billion, beating Wall Street expectations alongside a non-GAAP operating margin of 32.3%.
The primary catalyst for this growth was the widespread enterprise adoption of Data Cloud and its Agentforce AI platform, which together drove annual recurring revenue to over $1 billion (a 120% year-over-year jump). Nearly 60% of the company’s top 100 deals during the quarter included these integrated AI capabilities.
Capitalising on this momentum, Salesforce also announced a definitive $8 billion agreement to acquire Informatica to significantly bolster its data integration and management capabilities. Spurred by these robust results and solid pipeline execution, leadership raised its full-year fiscal 2026 revenue guidance to a range of $41.0 billion to $41.3 billion.
Earnings
The forecasted EPS and revenue for the coming earnings are $3.13 and $11.06B, respectively.
The qualitative value of CRM stems from its position as the undisputed global leader in cloud-based customer relationship management.
Others
Its deep enterprise moat is anchored by high switching costs and an extensive AppExchange ecosystem that secures customer stickiness. Furthermore, the seamless integration of Data Cloud with Agentforce AI serves as a powerful multi-cloud differentiator, driving massive platform consolidation.
Given the above, Salesforce looks to be of good value. With a P/E ratio of approximately 23, it seems to be an attractive offering. The market is expecting increasing profitability, but a falling revenue (forecast) is concerning. Will the business be under threat by other players and AI itself? This remains appealing, but I prefer to monitor for now.
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