Salesforce (CRM) is set to announce its fiscal first-quarter earnings after trading closes on Wednesday. Wall Street is keenly watching the cloud software giant, with many analysts expressing a bullish outlook.

A consensus of analysts, as tracked by Visible Alpha, shows that 18 out of 23 analysts rate Salesforce shares as a “buy” or equivalent. Four analysts have a “hold” rating, while one recommends a “sell.” The average price target is approximately $364, suggesting a potential upside of 33% from the stock’s closing price on Friday. Year-to-date, Salesforce shares are down about 18%.

The company is projected to report first-quarter revenue of $9.75 billion,representing an approximate 7% increase compared to the previous year. Adjusted earnings per share are expected to be $2.55,up from $2.44 a year ago.

Analyst Perspectives on Salesforce’s Growth

Oppenheimer analysts highlighted Salesforce as “one of the healthiest long-term profitable growth stories” among software companies. They noted the “strong momentum” of Salesforce’s AI platform, Agentforce, while acknowledging potential risks from macroeconomic uncertainty. Oppenheimer maintained a price target of $380.

“one of the healthiest long-term profitable growth stories”

Citi analysts,however,are taking a more cautious approach to Agentforce. They lowered their price target to $320 from $335, stating that they “await more meaningful data points” regarding the AI offering’s commercialization. Deutsche Bank recently reaffirmed a more optimistic target of $400,while Jefferies has a target of $375.

Key Factors to Watch in Salesforce’s Earnings report

Investors and analysts will be paying close attention to several key areas in Salesforce’s earnings report:

• Agentforce Adoption: The level of adoption and customer feedback on Salesforce’s AI platform will be a critical indicator of future growth potential.
• Subscription and Support Revenue: This remains a core revenue driver for Salesforce, and its performance will reflect the company’s ability to retain and expand its customer base.
• Operating Margin: Investors will be looking for signs of improved efficiency and profitability as Salesforce continues to integrate recent acquisitions.