Salesforce to report Q3 earnings, facing challenges with slowing sales growth

From Nasdaq: 2024-11-29 07:31:00

Salesforce is set to release its third-quarter fiscal 2025 results on Dec. 3, with projected revenues between $9.31 billion and $9.36 billion. Non-GAAP earnings per share are expected to be $2.42-$2.44. Key factors for growth include the company’s focus on digital transformation, AI-enabled cloud solutions, and strategic acquisitions like Spiff and Airkit.ai.

The company’s revenue estimates for various cloud services are positive, but challenges include declining software spending by small businesses and competition from Oracle and Microsoft. Cost restructuring efforts may boost profitability. Salesforce stock has outperformed the Computer – Software industry YTD, trading at a discount compared to industry peers.

Salesforce’s slowing sales growth is a key concern, with projections indicating mid-to-high single-digit growth for fiscal 2025 and 2026. The company’s shift towards margin improvement has impacted long-term growth potential. Investors may want to reconsider holding Salesforce stock given these challenges and underperformance relative to the market.

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Read more at Nasdaq: Salesforce Set to Report Q3 Earnings: Buy, Sell or Hold the Stock?