CRM: Salesforce Stock Steady Ahead of Big Earnings Update. Here’s What Traders Want to See.

Data Cloud growth will be a factor for bullish investors. Broadly, revenue is expected to land at $10.1 billion, up 9.8% from last year.

💰 Big Update Looms Wednesday

• Salesforce stock CRM heads into Wednesday’s second-quarter earnings report with money spinners watching closely for signs of strength in Data Cloud, AI integration, and maybe even some forward bookings ahead of next month’s Dreamforce event.
• Shares are up 2.8% in the past week as traders bet on a solid showing for the quarter. But even with that popping baked in, the stock is down 23% year-to-date and up just 3% over the last 12 months.

🎯 Q2 Numbers to Watch

• Salesforce expects second-quarter revenue of $10.1 billion, an 9.8% year-over-year increase, matching Wall Street’s growth projections
• Adjusted earnings per share are eyeballed at $2.78, up 8.6% from last year, boosted by broad cost-cutting measures and operational efficiencies.
• Analysts see generative AI demand, strategic acquisitions, and disciplined spending as the main drivers behind the expected gains.

🔥 Data Cloud, AI, and Dreamforce in Focus

• Salesforce’s Data Cloud, which helps businesses unify and activate customer data at scale, remains the company’s primary growth engine and a key focus for investors.
• Its Agentforce AI platform, aimed at automating customer service and embedding AI into workflows (because, what else), will be closely watched for adoption momentum and revenue contribution.
• With Dreamforce 2025 just weeks away (October 14-16), investors are looking for strong forward commentary on enterprise demand, pipeline strength, and upcoming AI product launches.

🤔 Weak Spots and Investor Concerns

• It’s not all rosy. Marketing and Commerce Cloud performance is expected to remain soft due to tighter client budgets and growing competition from rivals like Adobe ADBE and HubSpot HUBS.
• Sales Cloud is projected to deliver steady, in-line growth, while Service Cloud may perform slightly better thanks to rising enterprise demand.
• Despite new AI offerings like Agentforce, Salesforce has missed much of the broader AI rally so far, leaving its shares trailing peers like Microsoft MSFT, ServiceNow NOW, and Snowflake SNOW, which last week blasted higher by double digits on strong earnings data.