Is Salesforce (CRM) Stock a Buy Ahead of Earnings Wednesday?

TLDR

• Salesforce reports Q1 fiscal 2027 earnings after market close on May 27
• Wall Street expects EPS of $3.13 (up 21.3% YoY) on revenue of $11.06B
• CRM stock is down over 31% year-to-date
• Agentforce ARR hit $800M in Q4, up 169% YoY, with 29,000+ deals closed since launch
• Investors will watch Agentforce deal count and ARR trajectory closely for signs of acceleration

Salesforce (CRM) reports fiscal first-quarter 2027 results after the bell on Wednesday, May 27, with a conference call set for 5:00 PM ET.

Salesforce, Inc., CRM

The stock has had a rough run. CRM is down 31.86% year-to-date and nearly 36% over the past year, trading at around 23 times trailing earnings — a valuation that reflects investor doubt more than confidence.

Wall Street is expecting EPS of $3.13, up 21.3% year over year, on revenue of $11.06 billion, which would represent 12.5% annual growth. Salesforce has beaten EPS estimates in 88% of quarters over the past two years, so the bar for a headline beat is manageable.

But the headline numbers are not the story here.

The Agentforce Question

Every analyst, investor, and skeptic going into Wednesday is focused on one thing: Agentforce. The agentic AI platform has been at the center of every earnings call and investor day for the past two quarters.

In Q4 fiscal 2026, reported February 25, Salesforce posted Agentforce ARR of $800 million, up 169% year over year. More than 29,000 Agentforce deals have been closed since launch, a 50% increase quarter over quarter. Production accounts grew nearly 50% QoQ, and 2.4 billion Agentic Work Units were delivered.

Those are real numbers. But $800 million in ARR still represents a small slice of Salesforce’s $41.5 billion annual revenue base. The question is whether the growth rate is steep enough and fast enough to move the needle on the company’s overall trajectory.

That is the tension Wednesday needs to start resolving.

For the full fiscal year 2027, Salesforce has guided for revenue of $45.8 billion to $46.2 billion, representing 10% to 11% growth. The company also expects non-GAAP operating margins of 34.3% and operating cash flow growth of 9% to 10%.

Current remaining performance obligations ended Q4 at $35.1 billion, up 16% year over year — a forward revenue signal that analysts tend to watch closely.

What the Bulls and Bears Are Watching

Salesforce returned $14.3 billion to shareholders in fiscal 2026 — $12.7 billion in buybacks and $1.6 billion in dividends — all funded by $14.4 billion in free cash flow. The company also authorized a new $50 billion share repurchase program in February.

Seeking Alpha analyst Doug Collins called CRM “deeply undervalued, trading at a 45% discount to sector forward P/E,” pointing to a 10% free cash flow yield and the potential for revenue acceleration.

The long-term target is a $63 billion revenue run rate by fiscal year 2030, which includes the Informatica contribution.

Bears are watching for any sign that Agentforce deal momentum is flattening, that Microsoft Copilot and other AI-native CRM tools are taking ground, or that enterprise software budgets are tightening in the back half.

Management’s tone on second-half organic reacceleration will matter just as much as the numbers themselves.

Q1 fiscal 2027 cRPO growth will be one of the first data points analysts check when results hit Wednesday after the close.

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