Salesforce is poised to release its latest quarterly earnings report later today, with market analysts predicting an increase in both revenue and profits for the software giant. Options pricing indicates that traders foresee potential volatility in Salesforce’s stock, anticipating it could move up to 7% in either direction by the end of the week.
Currently, Salesforce’s stock is trading around $235, and a shift of this magnitude could result in shares climbing to approximately $251 at the high end, or dropping to around $218 at the lower end, which would represent the lowest point for the stock in over a year.
Expectations for the third quarter earnings highlight projected adjusted earnings per share at $2.86, reflecting a 9% year-over-year increase in revenue to approximately $10.28 billion. These estimates, based on data from Visible Alpha, suggest a solid performance following the previous quarter, where despite beating earnings expectations, the stock price faced pressure due to cautious guidance.
For investors, Salesforce stands as a pivotal player in the customer relationship management software sector and an integral part of the broader artificial intelligence landscape. Positive earnings could help to restore confidence in AI investments, which have recently been overshadowed by concerns of an overinflated market.
Deutsche Bank analysts have expressed optimism, anticipating that Salesforce will not only exceed expectations but also potentially enhance its future outlook. They argue that the stock is currently undervalued amidst “excessive negative sentiment” seen in recent months. Although shares have dipped nearly 30% in value in 2025 so far, the analyst community remains largely positive, with 14 out of 18 analysts labeling it a “buy.” The average target price of around $310 suggests a substantial potential upside of approximately 32% from Tuesday’s close.
As Salesforce prepares to make its announcement, there is a palpable sense of hope in the market that strong results could invigorate both the company and investor sentiment in the technology sector.