Salesforce Inc. (NYSE:CRM) is a leading player in the cloud-based software industry, known for its customer relationship management (CRM) solutions. The company is set to release its quarterly earnings on December 3, 2025. Analysts expect earnings per share (EPS) of $2.85 and revenue of approximately $10.27 billion. Salesforce competes with other tech giants like Microsoft and Oracle in the CRM space.
Despite a recent price-target reduction from $315 to $300, Salesforce's stock price has risen by 1.5% to $234.08. This positive movement comes as the company gains attention in the retail sector, with analysts forecasting earnings of $2.86 per share on revenue of $10.27 billion. The retail sector is experiencing positive trends, with Adobe Analytics reporting a 9% increase in Black Friday sales compared to the previous year.
Salesforce has faced challenges in recent earnings reports, with its stock declining after the last three announcements, including a 4.9% drop in September. Options traders are anticipating a significant 11.6% price swing on Thursday, which is higher than the average 7% movement seen in previous quarters. This indicates heightened market expectations and potential volatility following the earnings release.
The company is expected to report growth in its third-quarter fiscal 2026 earnings, driven by the accelerated adoption of AI and cloud technologies. Despite macroeconomic headwinds and slower deal cycles, Salesforce is likely to show decent revenue and profit growth. The demand for its cloud-based software and AI-powered tools, such as Einstein Analytics and generative AI tools, remains strong across global markets.
Salesforce's financial metrics reflect its market position. The company has a price-to-earnings (P/E) ratio of approximately 33.41 and a price-to-sales ratio of about 5.64. Its enterprise value to sales ratio is around 5.45, and the enterprise value to operating cash flow ratio is approximately 16.35. With a debt-to-equity ratio of roughly 0.046, Salesforce maintains a low level of debt relative to equity, indicating financial stability.
