Salesforce Stock Forecast 2025: Will CRM Survive the Blow of Unrealistic Expectations?

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Salesforce’s (CRM) stock price took a hammering after disappointing the market with lower-than-expected first-quarter results.

The cloud-based software company’s revenue guidance for the second quarter also came in below analysts’ expectations.

Investors’ judgment was immediate and brutal, with the Salesforce stock price tumbling 20% from $271.62 to $218.01.

Salesforce (CRM) YTD Performance

In our Salesforce stock forecast for 2024 and 2025, we examine the company’s latest earnings results and reveal what analysts believe will happen to the CRM stock price over the coming year and beyond.

Key Takeaways

  • First quarter results came in below analysts’ expectations.
  • CRM stock price hit an all-time high in March but is now trading 25% lower.
  • Salesforce management remains excited about the AI opportunity.
  • The company declared its first-ever dividend earlier this year.
  • Wall Street analysts believe CRM stock price could rise up to 25%.

Summary of the Latest Salesforce Stock Predictions

Salesforce Stock Forecast

(as of June 4, 2024)

1-Year Forecast 2027 (January) 5-Year Forecast

(June 2029)

MarketBeat $292.79
WalletInvestor $231.97 $244.55 $257.24
TipRanks $296.89
CoinCodex $284.06

(Jan 2025)

$409.40 $590.03

(Jan 2029)

Salesforce Stock Analysis

Salesforce’s stock price stood at $236.62 as the stock market closed on June 3, 2024, a 10% increase from its $215.31 level a year ago.

However, while the headline improvement sounds impressive, it doesn’t accurately portray the journey it’s been on over the past 12 months.

The CRM stock price hit an all-time high of $316.46 in early March 2024 after the company announced positive fourth-quarter fiscal 2024 results and declared its first-ever dividend.

But the subsequent disappointing first quarter 2025 results took the shine off the performance.

The stock price sank to $218.01 by the end of May 2024 before mounting a modest recovery.

Salesforce (CRM) 1-Year Performance

The Latest Salesforce News and Key Drivers to Consider

First Quarter Results

The latest Salesforce news concerns its financial results. The company recently announced revenue of $9.13 billion for the first quarter of 2025 (ending April 30, 2024), which was up 11% year-over-year.

It also said the GAAP operating margin was 18.7%, while the first quarter operating cash flow was up 39% year-over-year to $6.25 billion.

Salesforce Q1 FY25 Financial Summary.
Salesforce Q1 FY25 Financial Summary. Source: Salesforce

Payments to Shareholders & First Dividends

The first quarter results announcement also noted that $2.2 billion in the form of share repurchases and $0.4 billion in dividend payments had been returned to stockholders.

Amy Weaver, Salesforce’s president and chief financial officer, wrote:

“We’ve also made significant progress on our capital return program, returning more than $14 billion to shareholders since inception, including the payout of our first ever quarterly dividend in Q1.”

The company announced its first dividend of $0.40 per share of outstanding common stock in February 2024, as it published its fourth quarter results.

At the time, it declared: “We intend to pay a cash dividend on a quarterly basis going forward, subject to market conditions and approval by our Board of Directors.”

Future Guidance

Salesforce gave revenue guidance of $9.2 billion to $9.25 billion for the upcoming second quarter of the year.

It also said the total revenue figure for the full year 2025 should be between $37.7 billion and $38 billion.

In a statement, Marc Benioff, Salesforce chairman and chief executive, insisted the company’s “profitable growth trajectory” continues to drive strong cash flow generation.

“We are at the beginning of a massive opportunity for our customers to connect with their customers in a whole new way with AI,” he wrote. “As the world’s #1 AI CRM, we’re incredibly well positioned to help companies realize the promise of AI over the next decade.”

Salesforce Revenue Guidance for 2025.
Salesforce Revenue Guidance for 2025. Source: Salesforce

Salesforce Stock Forecast: Analyst Views

Crucial to any Salesforce stock forecast are the views of analysts covering the stock, as their projections are influential to private investors.

Dan Romanoff, senior equity analyst at Morningstar, has lowered his Salesforce price target from $300 to $285 on the back of its first-quarter results.

In his Salesforce share price forecast, he wrote:

“While the second quarter outlook was light, management maintained its full-year outlook, raising the possibility of further disappointment throughout the rest of the year.”

However, he also pointed out that he sees the shares as attractive and noted how the Salesforce management remains excited about the AI opportunity.

“Sluggishness in the quarter was driven by weakness in Europe and several verticals, such as technology, retail and consumer goods,” he added. “Weakness in Europe and technology is a common thread in our software coverage.”

Romanoff also saw other reasons for optimism.

“Diving further into Salesforce’s revenue trends, we are encouraged by some pockets of strength, even as macroeconomic conditions delivered a gut punch this quarter,” he wrote. “Management repeatedly noted strong client interest around AI and Data Cloud.”

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said it wasn’t surprising investors reacted negatively to the disappointing results and downbeat guidance.

She told Techopedia:

“The difficult macroeconomic environment is partly behind the slowdown in sales growth, which is now trending around 10%, sharply down compared to just a few years ago. There were hopes that a turning point was in sight but it seems that firms are still being highly selective with their software budgets.”

More broadly, Streeter pointed out that Salesforce’s costs are in a much better position, thanks to some restructuring of the business, and the benefits are being felt in terms of cash flow.

“Salesforce will need a razor-sharp focus on pulling growth levers, firstly by better bundling of its cloud products and better use of its deep wells of data,” she added.

Looking ahead, AI is seen as another major lever, given that Salesforce enables customers to get all their data into one place, and AI tools can then add value.

“However, more detail will be needed before investors are more confident about the direction of travel,” she said.

According to Danni Hewson, head of financial analysis at AJ Bell, Salesforce’s share price performance proves AI magic “can’t always turn tech stocks to gold.”

She told Techopedia:

“It’s not that the company isn’t doing well, it’s that it’s not doing as well as investors had expected, and its soft outlook for the rest of 2024 hasn’t done it any favors.”

Hewson branded AI “one of the company’s biggest issues,” with concerns that many would-be customers might prioritize generative AI spending over other cloud-based services. She added:

“Competition in this space is fierce and Salesforce could find itself caught between a rock and a hard place, needing to rein in spending to maintain margins but also needing to increase spend to try and regain some of its old growth trajectory.”

Salesforce Stock Predictions for 2024, 2025 & 2030

So, is Salesforce a buy, hold, or sell? The CRM stock is rated a “moderate buy,” according to the views of Salesforce stock predictions of 35 Wall Street analysts compiled by MarketBeat as of June 4, 2024.

However, opinions vary.

While 24 have ‘buy’ recommendations in place, and one sees it as a ‘strong buy,’ nine analysts view it as a ‘hold’ and one as a ‘sell.’

Their consensus is that the price could rise 23.74% to $292.79 over the coming year, although predictions ranged from $220 to $365.

It was a similarly mixed outlook from the 39 analysts’ opinions put together by TipRanks. While 28 believe the stock is a ‘buy,’ 10 class it as a ‘hold’ and one as a ‘sell.’

The consensus Salesforce stock forecast is that the price could reach $296.89 over the next 12 months. This would be a 25.47% increase over the $236.62 closing price on June 3, 2024.

Meanwhile, Wallet Investor’s algorithmic forecast is less optimistic. In its Salesforce stock forecast 2025 it suggests that the price could slip 2% to $231.97 over the coming year.

As far as a Salesforce stock forecast 2030 is concerned, Coincodex has the CRM price reaching $708.33 by the beginning of 2030, based on its previous average yearly growth.

Note that analysts’ and algorithm-based projections might prove to be wrong.

Lower Price Targets for CRM Stock

The following table shows the latest analysts’ Salesforce stock predictions, as of June 4, 2024.

As you can see, many analysts have lowered their target prices in the wake of the company’s disappointing first-quarter results and second-quarter predictions.

Date Analyst Firm Action Rating Change Price Target Percentage Change
5/31/2024 Macquarie Lower Target Outperform ➝ Outperform $330.00➝

$275.00

+20.09%
5/30/2024 Barclays Lower Target Overweight ➝ Overweight $355.00➝

$305.00

+40.88%
5/30/2024 Citigroup Lower Target Neutral ➝ Neutral $323.00➝

$260.00

+20.01%
5/30/2024 JPMorgan Chase & Co Lower Target Overweight ➝ Overweight $310.00 ➝ $300.00 +39.96%
5/30/2024 DA Davidson Lower Target Neutral ➝ Neutral $300.00 ➝ $230.00 +7.30%
5/30/2024 TD Cowen Lower Target Hold➝ Hold $330.00 ➝ $285.00 +32.96%
5/30/2024 Jefferies Financial Group Lower Target Buy ➝ Buy $360.00 ➝ $350.00 +63.28%
5/30/2024 Wells Fargo & Company Lower Target Equal Weight ➝ Equal Weight $300.00 ➝ $250.00 +16.52%
5/30/2024 Deutsche Bank Aktiengesellschaft Lower Target Buy ➝ Buy $350.00 ➝ $300.00 +39.82%

Source: MarketBeat

The Bottom Line: Should I Invest in Salesforce?

A decision as to whether or not you should invest in Salesforce will depend on your views of the company’s prospects.

The consensus view of 35 Wall Street analysts is that the CRM price could rise 23.74% to $292.79 over the coming year, according to MarketBeat.

However, predictions ranged enormously. While the most pessimistic warned that the price could slip to $220, the most optimistic believe it could go as high as $365.

Of course, analysts can be wrong. Our Salesforce stock forecast also illustrates what can happen to the stock price of even profitable businesses when expectations are too high.

Do your own research and always remember your investment decision depends on your attitude to risk, your expertise in the stock market, the spread of your portfolio, and how comfortable you feel about losing money.

The information in this article does not constitute investment advice and is meant for informational purposes only.

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Rob Griffin
Financial Journalist
Rob Griffin
Financial Journalist

Rob is a seasoned journalist with over three decades of experience spanning across business and finance journalism. Before embarking on a freelance career in 2002, he contributed his expertise to the business desks of notable publications such as The Guardian, Yorkshire Post, Sunday Business (now Business Post), and Sunday Express. Throughout his freelance journey, Rob has been a regular contributor to a wide range of national newspapers, consumer magazines, trade publications, and websites. His work has appeared in titles such as The Independent, Citywire, Daily Express, FT Adviser, and Sunday Telegraph, covering an array of subjects from market trends to…