Salesforce is poised to announce robust fiscal third-quarter results this week, driven by soaring use cases across its comprehensive product offerings and heightened demand for artificial intelligence solutions, as per Wedbush Securities. The brokerage anticipates a 'modest' upside to the software giant's headline results compared to Wall Street estimates, as indicated in a client note released on Sunday.
Wedbush highlighted that the risk-reward dynamic for the company's stock is 'very compelling' at present, particularly as its innovative agent-focused platform, Agentforce, is expected to evolve in the coming years. Moreover, Salesforce's potential within its existing customer base remains largely underestimated by market analysts. Current projections from FactSet suggest that Salesforce will report non-GAAP earnings of $2.44 per share and revenue of $9.35 billion for the third quarter, with the results set to be published after market closure on Tuesday. Field checks indicate that a growing number of customers are recognizing elevated use cases for Salesforce's extensive product portfolio, experiencing a new wave of growth while leveraging the transformative demand for AI solutions to enhance automation and efficiency within their organizations, according to Wedbush analysts led by Daniel Ives. Monetizing artificial intelligence within Salesforce’s installed base presents a 'major land grab opportunity' that could significantly enhance the company's financial performance, potentially increasing overall revenue by more than $4 billion annually in the upcoming years.
Analysts expect Salesforce's CEO Marc Benioff to elaborate on the company's long-term AI strategy this week. Maintaining an outperform rating on Salesforce's stock, Wedbush set a price target of $375. They believe that Salesforce stands to benefit markedly from the AI revolution, potentially adding around $40 per share to its story as the monetization narrative progresses over the next 12 to 18 months, with Benioff and the team spearheading this new era of AI growth..