Salesforce, Inc. (NYSE: CRM) Analysis: Navigating Market Challenges and Analyst Expectations

Font: Financial Modeling Prep  • Feb 24, 2026

• The consensus price target for Salesforce, Inc. (NYSE: CRM) has decreased over the past year, indicating changing analyst expectations.
• Despite market underperformance and concerns over AI startups, Salesforce's strategic acquisitions and AI-embedded workflows provide a competitive edge.
• Upcoming earnings report anticipated to show significant stock movement with expectations of revenue boosts from AI-driven cloud tools and EPS growth from cost-cutting measures.

Salesforce, Inc. (NYSE: CRM) is a prominent player in the customer relationship management (CRM) industry, offering a wide range of services aimed at improving customer engagement and optimizing business operations. The company's flagship Customer 360 platform is a key component of its offerings, allowing businesses to provide seamless experiences to their customers across multiple channels.

The consensus price target for Salesforce's stock has seen a downward trend over the past year. Last month, the average target was $235, a decrease from $297.5 three months ago, and even further down from $317.64 a year ago. This decline suggests a shift in analysts' expectations, possibly due to changing market conditions or company-specific challenges.

Despite the recent decline in price targets, some analysts remain optimistic about Salesforce's potential. Phil Winslow from Credit Suisse has set a price target of $315, indicating confidence in the company's growth prospects. This optimism is partly driven by the belief that the recent sell-off in the software sector has been excessive, and that Salesforce is currently oversold, especially with a price-to-earnings ratio of 25.

Salesforce's recent underperformance in the market is attributed to concerns over artificial intelligence (AI) startups. However, the company's strong data integration, AI-embedded workflows, and strategic acquisition of Informatica provide a competitive edge over standalone AI agents. These factors, along with margin expansion and consistent earnings per share (EPS) outperformance, support a valuation adjustment to a $200 price target.

As Salesforce prepares to release its earnings report, there is anticipation of significant stock movement. The company's AI-driven cloud tools are expected to boost revenues to $11.2 billion, while cost-cutting measures may enhance EPS growth. Despite a slowdown in revenue growth, the market remains keenly interested in Salesforce's financial performance and future prospects, as highlighted by Phil Winslow's $315 price target.