CRM Stock Today, February 24: Price Targets Cut Ahead of Q4 Earnings
CRM stock is under pressure ahead of Salesforce’s Q4 FY2026 earnings on Feb 25. Salesforce (CRM) closed at $185.29, down 29.7% year to date, with a day range of $183.23 to $186.95. Barclays, Evercore ISI, and Jefferies cut price targets but kept bullish ratings, citing slower 9% revenue growth and AI competition. Investors will watch if Agentforce ARR growth, up 114% year over year to about $1.4 billion, and further margin gains can stabilize sentiment into results.
Price target cuts and the setup into Q4 FY2026
Major brokers trimmed price targets on Salesforce but kept Buy or Overweight ratings, flagging demand caution and tighter software budgets. Cuts from Barclays, Evercore ISI, and Jefferies reset expectations into earnings, which may lower the bar for upside if results clear. See coverage: source.
With revenue growth slowing to about 9%, focus shifts to billings, remaining performance obligations, and operating margin. Clean expense control and stable cRPO would help confidence. Management commentary on AI adoption, pipeline quality, and Q1 pacing will steer near-term direction as the company reports on Feb 25.
CRM stock is down 29.7% in 2026 amid a broader software selloff. Analyst mix shows 31 Buy, 10 Hold, and 2 Sell ratings, with a Buy-leaning consensus. The debate centers on durable AI-driven demand versus near-term competition and budget scrutiny. A credible path to growth plus margins could ease pressure.
Growth vs. profitability: the core trade-off
Agentforce ARR rose 114% year over year to roughly $1.4 billion, a key proof point for Salesforce’s AI strategy. Investors want clarity on attach rates to Sales and Service Cloud and use cases driving expansions. Recent analysis highlights the agentic AI opportunity and cross-cloud potential source.
Salesforce runs a 20.5% operating margin and 17.9% net margin on a trailing basis. Free cash flow yield is about 7.6%, with operating cash flow per share at $14.14. Stock-based compensation is 8.0% of revenue, and the company has low leverage with debt to equity near 0.19 and strong interest coverage of about 30.7 times.
At $185.29, CRM trades at 23.8 times trailing EPS and 4.18 times sales. The dividend yield is roughly 0.94%. The profile is quality with improving profitability, but investors will judge valuation on growth durability and AI monetization. Clear FY outlook and stronger billings could support multiple stability.
Technical picture for traders
RSI sits at 24.8, which is oversold, while ADX at 45.5 indicates a strong trend. MACD is negative but narrowing. Together, these point to heavy pressure with potential for sharp swings around earnings. On-balance volume is weak, confirming distribution ahead of the report.
The stock traded between $183.23 and $186.95 today. The 50-day average is $232.80 and the 200-day is $249.40. The lower Bollinger Band near $166.82 flags possible downside if guidance disappoints. The 52-week low is $174.57, which many view as a first key support zone.
Average true range is 8.49, showing elevated daily swings. With Bollinger mid-band near $198.43, any post-earnings bounce may meet resistance in the high $190s. Traders often size positions smaller into events like this. CRM stock may move quickly if results diverge from tempered expectations.
What to watch on Feb 25
Investors will watch if revenue growth around 9% holds and whether billings and cRPO trends point to stable demand. Seasonal Q4 strength in large enterprise deals is in focus. Any commentary on win rates or deal cycles will shape how durable 2026 demand looks.
Agentforce ARR growth and attach rates to core clouds are key. Updates on customer payback, productivity gains, and new use cases can support the AI story. Clear examples of cost savings or revenue lift across industries would ease competition concerns.
Initial FY2027 outlook on revenue growth, operating margin expansion, and cash flow conversion will be pivotal. Investors will track buyback pacing and any M&A appetite. Stronger free cash flow guidance could offset slower growth, while a cautious tone may pressure CRM stock further.
Final Thoughts
CRM stock heads into earnings with expectations reset by price target cuts and a sharp year-to-date decline. The bull case needs proof that AI demand is real, visible in Agentforce ARR, billings quality, and margin discipline. The bear case points to 9% growth, tighter budgets, and fierce AI competition. Technically, shares look oversold, which can amplify post-report moves in either direction. For investors, the setup is simple. Watch revenue durability, operating margin progress, and guidance. If Salesforce delivers steady AI adoption and clean execution, sentiment can stabilize. If not, a retest of recent lows is possible. Stay data-driven and patient into the print.
FAQs
Why is CRM stock down ahead of earnings?
Recent price target cuts from Barclays, Evercore ISI, and Jefferies reset expectations, citing slower growth and AI competition. Broader software weakness also weighed on shares. Investors want clearer proof of durable demand and margin progress, so risk appetite stayed low before Salesforce earnings.
When does Salesforce report earnings and what matters most?
Salesforce reports Q4 FY2026 results on Feb 25. Key items include revenue growth near 9%, billings and cRPO, operating margin, and AI traction in Agentforce. Guidance for the new fiscal year and commentary on deal cycles will likely drive the next move in CRM stock.
Is CRM stock attractive on valuation after the selloff?
At $185.29, CRM trades around 23.8 times trailing EPS and 4.18 times sales, with a 0.94% dividend yield and about 7.6% free cash flow yield. The setup can be compelling if growth and margins hold, but results and guidance will determine if the multiple is sustainable.
What is Agentforce ARR and why does it matter?
Agentforce ARR tracks recurring revenue tied to Salesforce’s AI agents. Management highlighted 114% year-over-year growth to roughly $1.4 billion. Strong attach rates and real customer outcomes can support revenue durability and margins, which is central to the investment case for CRM stock in 2026.
What technical levels should traders watch on CRM stock?
Near-term support is around the 52-week low at $174.57, with the lower Bollinger Band near $166.82 below that. Potential resistance sits near the mid-band around $198 and the 50-day average at $232.80. RSI at 24.8 signals oversold conditions into earnings.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.