Cloud software company Salesforce.com reported its third quarter earnings that surpassed analysts’ expectations. However, the company’s guidance was below expectations.
Salesforce.com’s GAAP earnings of $1.15 per share was a major improvement from the year-ago quarter’s loss of -12 cents per share a year ago. Adjusted earnings came in at $1.74 a share, compared to the 75 cents per share forecasted by analysts surveyed by Factset.
Revenue surged +20% year-over-year to $5.42 billion, beating the $5.25 billion expected by analysts polled by FactSet.
The quarter’s subscription and support revenues rose +20% year-over-year.
For the fourth quarter, Salesforce.com expects earnings in the range of 73 cents to 74 cents, and revenue range of $5.67 billion to $5.68 billion. Analysts polled by FactSet estimated earnings of 86 cents a share and revenue of $5.51 billion.
Looking further ahead, Salesforce projects full-year earnings to range between $4.63 and $4.63. It expects revenue in the range of $21.10 billion to $21.11 billion. Those are lower expectations compared to the Street forecasts of earnings of $3.75 per share on revenue of $20.78 billion.
CRM moved below its 50-day moving average on July 09, 2025 date and that indicates a change from an upward trend to a downward trend. In of 34 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where CRM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 09, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on CRM as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for CRM crossed bearishly below the 50-day moving average on June 11, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 Moving Average Convergence Divergence (MACD) for CRM just turned positive on June 24, 2025. Looking at past instances where CRM's MACD turned positive, the stock continued to rise in of 46 cases over the following month. 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 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 (4.916) is normal, around the industry mean (31.479). P/E Ratio (71.967) is within average values for comparable stocks, (164.144). Projected Growth (PEG Ratio) (1.620) is also within normal values, averaging (2.732). Dividend Yield (0.001) settles around the average of (0.030) among similar stocks. P/S Ratio (8.532) is also within normal values, averaging (62.041).
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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 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