Salesforce beat the fiscal fourth quarter earnings estimates, but fell shy of expectations on guidance for the next quarter.
At 70 cents per share for the three months ending January, the cloud computing/software company’s adjusted earnings overshot analysts’ expectation of 55 cents per share (based on Refinitiv data). The earnings -per-share was more than double the year-ago quarter’s figure.
Revenue for the quarter increased +26% from the year-ago quarter to touch $3.60 billion, exceeding analysts’ estimate of $3.56 billion (based on Refinitiv data). Subscription and support revenues also climbed +26% year-over-year to $3.38 billion in the quarter.
Despite the better-than-expected results for the latest quarter, what probably led to Salesforce shares slumping during Monday’s extended trading was its forecast of 60 cents to 61 cents earnings-per-share on a revenue range of $3.67 billion to $3.68 for the fiscal first quarter – figures that are lower than the 63 cents earnings per share on $3.70 billion revenue that analysts had anticipated ((based on Refinitiv data).
Nevertheless, the company’s guidance for the full fiscal year 2020 is in line with analysts’ expectations. It projects adjusted earnings of $2.74 to $2.76 per share, while analysts’ expect $2.75 per share for the year. Revenue forecast of $15.95 billion to $16.05 billion is a range covering analysts’ prediction of $15.99 billion.
Salesforce stock was down -3.3% in after-hours trading Monday, following the earnings release. It had already dropped -3.66% during the main trading session that day.
CRM saw its Momentum Indicator move below the 0 level on September 10, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned negative. In of the 81 cases, the stock moved further down in the following days. The odds of a decline are at .
The Moving Average Convergence Divergence Histogram (MACD) for CRM turned negative on September 12, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CRM's RSI Oscillator exited the oversold zone, of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where CRM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRM advanced for three days, in of 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 252 cases where CRM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.760) is normal, around the industry mean (13.378). P/E Ratio (35.205) is within average values for comparable stocks, (120.706). Projected Growth (PEG Ratio) (1.282) is also within normal values, averaging (2.056). Dividend Yield (0.007) settles around the average of (0.027) among similar stocks. P/S Ratio (5.932) is also within normal values, averaging (59.163).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CRM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CRM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of on-demand customer relationship management software technology
Industry PackagedSoftware