Salesforce Earnings Preview: Revenue Growth and Price Target on Tap

Salesforce (CRM) is set to announce its Q2 earnings on Wednesday after market hours. The company beat revenue expectations last quarter, reporting $11.13 billion in revenues, up 13.3% year-on-year. However, it was a mixed quarter for Salesforce, with full-year EPS guidance exceeding analysts' expectations but missing billings estimates.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay on track. Looking at Salesforce's peers in the sales software segment, some have already reported their Q2 results, with ZoomInfo delivering year-on-year revenue growth of 1.2%, beating analysts' expectations by 2.7%, and Freshworks reporting revenues up 16%, topping estimates by 1.6%.

Salesforce is heading into earnings with an average analyst price target of $243.98, compared to its current share price of $208.63. The company's stock has been performing well in the sales software segment, which has seen a 15.7% increase on average over the last month.