CRM Stock Jumps After Salesforce Earnings Beat—Analysts Lift Price Targets

Salesforce’s CRM Stock: What the Informatica Deal and Upcoming Earnings Mean for Investors Introduction Salesforce’s ticker symbol “CRM” surged to the top of watch-lists today after the cloud-software leader revealed its largest purchase since Slack and prepared to report first-quarter FY 2026 earnings. Below is a concise breakdown of the catalysts every CRM stock watcher needs to know. Key Takeaways • $8 billion all-stock acquisition of Informatica announced 27 May 2025 • Q1 FY 2026 results due after Wednesday’s closing bell (28 May 2025) • Fresh analyst moves: BMO trims price target to $350, Citi reiterates Hold • Technical levels to monitor: $280 support, $310 resistance • Strategic upside: Data management + AI cross-sell opportunities 1. The Informatica Acquisition Adds a New Data Layer Salesforce said it will buy data-integration specialist Informatica for roughly $8 billion in stock, valuing INFA at $25 per share, a 12 % premium to the prior close. Management argues the deal plugs a long-standing gap in its Customer 360 platform: end-to-end data governance. The company expects the purchase to close in the second half of FY 2026 and to be cash-flow accretive in year one. Why it matters for CRM stock: • Revenue synergy—Sales reps can bundle Informatica’s data pipeline tools with Salesforce Data Cloud, potentially lifting average contract value. • Margin headwinds—An all-stock deal limits cash drain, but integration costs could pressure near-term GAAP margins. • Competitive moat—Owning core ETL and metadata management helps Salesforce keep pace with Microsoft’s Fabric and Oracle’s Autonomous Data Platform. 2. Earnings Preview: What Wall Street Expects Consensus calls for revenue of $9.3 billion, up 10 % year-over-year, and adjusted EPS of $2.38 when Salesforce reports after market close on 28 May. Guidance will be critical—investors want proof that AI-driven product launches like Einstein Copilot translate into billings growth rather than free trials. Watch list for the conference call: • Remaining Performance Obligation (RPO) growth vs. 12 % last quarter • Update on $10 billion share-buyback authorization • Early demand signals for the engineering edition of Slack GPT 3. Analyst Sentiment Is Cooling—but Still Leaning Bullish BMO Capital Markets lowered its CRM price target to $350 from $367 while maintaining Outperform, citing near-term dilution from the Informatica deal. Citi kept a Hold rating and cut its target to $310, warning that large enterprise renewals may push deals into Q2. Overall, 34 of 44 analysts still rate the stock Buy or Overweight. 4. Technical Picture: Bulls Need a Close Above $310 CRM stock is up roughly 36 % over the past 12 months but has stalled between $280 and $310 since January. A breakout on above-average volume could pave the way to the all-time high near $318, while a break below $280 opens downside to the 200-day moving average at $265. 5. Investment Thesis: Is CRM Stock a Buy Now? For growth investors, Salesforce pairs double-digit top-line expansion with a disciplined margin trajectory—management targets 32 % operating margin by FY 2027. The Informatica purchase amplifies its competitive edge in data management, a core enabler of generative AI applications. Short-term headline risk around integration and stock dilution may offer a favorable entry point, provided Wednesday’s earnings guide doesn’t underwhelm. Bottom Line CRM stock sits at a strategic crossroads: integrate Informatica, prove AI monetization, and sustain margin expansion—all while defending market share against Microsoft and Oracle. Traders eyeing a catalyst-rich week will focus on two numbers: Salesforce’s RPO growth and its first post-deal free-cash-flow outlook. Long-term investors, meanwhile, may view any pullback toward $280 as an opportunity to accumulate shares ahead of the anticipated AI-driven CRM super-cycle.