CRM stock faced heavy selling pressure this week after Salesforce delivered a weaker-than-expected revenue forecast for its upcoming quarter, raising concerns about the company’s ability to fully monetize its artificial intelligence (AI) initiatives. Salesforce stock closed at $256.45 on Tuesday but fell sharply in after-hours trading, dropping to $242.15, down more than 5.5%.
The earnings announcement came on September 3, 2025, when Salesforce released its fiscal Q2 results. While the company reported revenue of $8.26 billion, slightly ahead of consensus estimates, its forward-looking guidance disappointed Wall Street. Salesforce earnings guidance pointed to revenue growth in the range of 7–8%, well below investor expectations of double-digit expansion driven by AI adoption.
Salesforce Earnings Miss AI Hopes
For months, investors had bet that Salesforce would lead the charge in AI monetization through its Einstein 1 platform and data cloud services. However, management admitted that customer adoption is progressing at a slower pace than projected. As a result, CRM earnings growth has not kept up with the market hype surrounding generative AI.
Analysts suggest that while Salesforce’s fundamentals remain strong, the weaker forecast signals caution. “Salesforce is still a leader in cloud-based CRM, but the latest earnings guidance shows that AI revenue streams are not scaling as quickly as investors hoped,” said one Wall Street strategist.
CRM Stock Performance and Market Reaction
CRM stock has been volatile throughout 2025. After hitting a 52-week high of $369 in December 2024, Salesforce stock has been on a downtrend, pressured by weaker enterprise spending and rising competition. The company’s 52-week low was recorded in August 2025 at $226.48.
Year-to-date, CRM stock is down over 23%, significantly underperforming the broader tech sector. Despite a modest recovery during the summer, the latest Salesforce earnings announcement has reignited bearish sentiment. Trading volumes surged on Wednesday, signaling that institutional investors are reducing exposure to Salesforce stock until clearer signs of AI-driven growth emerge.
Key Financial Metrics from CRM Earnings
- Earnings per share (EPS): $6.89 (TTM)
- Forward P/E ratio: 21.99
- Revenue (TTM): $38.59 billion
- Net margin: 16.08%
- Gross margin: 77.34%
These numbers highlight Salesforce’s profitability and strong recurring revenue model. However, investors remain focused on the future trajectory of CRM earnings rather than trailing results.
Analyst Outlook on Salesforce Stock
Market analysts remain divided. Some argue that CRM stock is oversold and offers an attractive long-term entry point given Salesforce’s leadership in enterprise software. Others warn that the lack of near-term AI revenue growth will weigh on sentiment.
Morgan Stanley recently revised its price target on Salesforce stock to $270, down from $310, citing “execution risks in AI monetization.” Meanwhile, Goldman Sachs maintained a “Buy” rating but emphasized the need for stronger visibility on CRM earnings acceleration in fiscal 2026.
What’s Next for Salesforce?
CEO Marc Benioff highlighted that Salesforce is committed to scaling its AI ecosystem, investing in both research and partnerships. The company expects meaningful monetization by late 2026 as enterprises increase adoption of AI-powered CRM tools.
Still, the near-term outlook remains cautious. Salesforce earnings in the next quarter will be closely watched to determine if the company can stabilize revenue growth and reassure investors about its long-term strategy.
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