Salesforce (NYSE:CRM) Raises Full Year 2026 Guidance and Partners with Cornerstone OnDemand

Salesforce (NYSE:CRM) recently raised its full-year 2026 revenue guidance by $400 million to a high of $41.3 billion, coinciding with a 4% price rise over the last month. The company's increased projection aligns with a market where tech stocks have experienced mixed movements amid fluctuating tariffs and robust Nvidia earnings. Salesforce's partnership with Cornerstone OnDemand and elevated Q1 earnings results may have supported its marginally positive performance. This uptick occurred as the broader market reflected similar gains, suggesting Salesforce's strategic decisions bolstered its resilience amidst week-to-week market variations.

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The recent news about Salesforce's increased revenue guidance could positively influence the company's long-term narrative, potentially signaling robust future growth. As Salesforce invests in AI and data solutions through Agentforce and Data Cloud, the anticipated revenue increase could align well with the company's broader strategic goals. Over the past five years, Salesforce's total shareholder return was 58.87%, illustrating a solid long-term performance. However, in the past year, it underperformed relative to both the US market, which returned 11.5%, and the US Software industry, which saw a 17.2% return.

The projected revenue and earnings growth driven by new AI initiatives may continue to encourage investor confidence, but risks remain. Potential headwinds such as increased competition and uncertainties associated with pricing models could impact Salesforce's growth projections. The revenue guidance increase links directly to the company's earnings forecasts, indicating possible upward adjustments, while the strategic pivots to consumption-based pricing hint at margin improvements.

Regarding valuation, Salesforce's recent 4% price increase still places it below the analyst consensus price target of US$364.65, suggesting room for further growth if company projections are realized. The stock is currently trading at a discount to its price target, enhancing its appeal from a value perspective. With the revenue anticipated to rise to US$49.1 billion by 2028, the increase in guidance bolsters the case for reaching the analyst's estimates and potentially aligning the current price with future expectations.

Gain insights into Salesforce's future direction by reviewing our growth report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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