Salesforce Trading at 13x Earnings with Analysts Forecasting 11% Growth and 41% Upside
CRM•Salesforce shares have recovered 8.6% from their April 10 three-year low but remain down 32% year-to-date ahead of earnings. Analysts forecast 11% growth in fiscal 2027 versus 9.6% last year, valuation at 13x earnings versus its 10-year 45x average, with 47 of 62 rating buys and targets implying 41% upside.
1. Earnings Outlook
Salesforce will report fiscal Q1 results Wednesday, with consensus forecasting 11% revenue growth in full-year fiscal 2027 versus 9.6% in fiscal 2026. The shares have rebounded 8.6% from an April 10 three-year low but are still down 32% year-to-date.
2. Analyst Sentiment
Of 62 analysts, 47 rate Salesforce shares a buy, with the average price target implying 41% upside over the next 12 months. Bank of America initiated coverage with an underperform rating, warning of structurally lower growth, weaker new customer additions, limited upsell potential and an unproven AI monetization strategy.
3. Valuation Context and Risks
Salesforce trades at about 13 times estimated fiscal 2027 earnings, well below its 10-year average of 45 times. Competition from AI rivals such as Anthropic and OpenAI poses pressure on its core CRM platform, making earnings results a key test of the company’s AI-era durability.
