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Salesforce to Report Q4 Results: Revenue and EPS Projections

Salesforce, Inc. (CRM) is set to announce its fourth-quarter results. With projected revenues of $9.9-$10.1 billion and non-GAAP EPS estimates of $2.57-$2.62, the outlook suggests robust growth, influenced by digital transformation and AI integration.

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AI Rating:   7
Earnings Per Share (EPS)
Salesforce anticipates non-GAAP earnings per share in the range of $2.57 to $2.62 for the fourth quarter, indicating a 13.5% increase from the prior year’s results. The consensus estimate is revised downward slightly to $2.60 per share.

Revenue Growth
For the fiscal fourth quarter, total revenues are projected between $9.9 billion and $10.1 billion, with a consensus estimate of $10.04 billion, representing an increase of 8.1% year over year.

Profit Margins
The company’s ongoing cost restructuring is expected to positively impact profitability. Salesforce’s operating margin expanded by 190 basis points to 33.1% in the previous quarter, attributed to improved gross margins and cost-cutting measures.

Growth Factors
Salesforce's strategic focus on digital transformation, generative AI-enabled solutions, and recent acquisitions have strengthened its market position and diversified its revenue base. The company’s services are positioned to benefit from growing demand and the digital transformation trends across industries.

Stock Performance
Salesforce shares have appreciated by 8.5% over the last year, outperforming the software industry's average growth. However, the stock has underperformed compared to some peers but it remains attractive considering its valuation metrics, trading at a discount relative to its industry peers.

Overall, there is an optimistic outlook for Salesforce with solid fundamentals, good growth potential driven by digital transformation and AI initiatives, and improved profit margins.
Stocks:  CRM MSFT SAP ORCL