Salesforce (CRM) AI Stock Analysis

• Market Cap: $179.98B
• Dividend Yield: 0.63%
• Average Volume (3M): 14.42M
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.27
• Revenue Growth: 8.41%
• EPS Growth: 22.92%
• Country: US
• Employees: 76,453
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.81
• Shares Outstanding: 923,000,000
• 10 Day Avg. Volume: 13,752,835
• 30 Day Avg. Volume: 14,422,932
• PEG Ratio: 1.24
• Price to Book (P/B): 3.41
• Price to Sales (P/S): 4.86
• P/FCF Ratio: 14.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 15.13
• 1Y Price Target: $264.94
• Price Target Upside: 35.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 37
• EPS Forecast (FY): 13.18
• Revenue Forecast (FY): $46.11B

• Rating: 71 Outperform
• Price Target: $219.00 ▲(12.13% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong cash-flow generation and improved profitability, reinforced by upbeat guidance and accelerating AI/data-platform momentum. These positives are tempered by weak technicals (price below key moving averages with negative MACD) and a valuation that is not cheap, plus incremental balance-sheet risk from debt-funded buybacks.

Positive Factors

Strong free cash flow and cash conversion

Salesforce’s free cash flow scaled materially (≈$4.1B in 2021 to ≈$14.4B in 2026) and FCF tracks ~96% of net income. Durable high cash generation underpins reinvestment, buybacks, and dividend capacity, providing long-term financial flexibility and earnings quality.

Large, growing backlog and contract visibility (RPO/CRPO)

Expanded CRPO and RPO give multi-period revenue visibility: CRPO $35.1B and RPO $72B signal durable recurring demand and a sizable contracted backlog that supports near-term revenue realization and reduces top-line volatility versus purely transactional models.

Strong product momentum in Agentforce/Data 360 and large deals

Rapid ARR growth for Agentforce/Data 360, strong large-deal traction and high cross-sell rates show durable competitive advantage in AI/data-driven offerings. This supports scalable upsell into existing customers and a structural shift toward higher-value, consumption-based revenue streams.

Negative Factors

Debt-funded accelerated buybacks increase leverage

Financing aggressive share repurchases with a large senior notes issuance materially increases long-dated indebtedness. Even with strong cash flow, higher leverage reduces financial flexibility, raises interest expense sensitivity, and elevates refinancing and covenant risk over the medium term.

Revenue growth deceleration and business unevenness

Although scale is large, recent year-on-year revenue growth has slowed materially to ~3% in 2026, and management flagged pockets of weakness (Marketing/Commerce/Tableau). Sustaining past growth rates will require broader reacceleration beyond a few high-growth product lines.

AI monetization uncertainty and partner competitive risk

New consumption metrics (AWUs/tokens) and evolving pricing (AELAs/credits) introduce long-term monetization uncertainty. Additionally, reliance on foundational model partners risks strategic displacement if those providers enter the enterprise stack, pressuring pricing and margin sustainability.

Salesforce Business Overview & Revenue Model

Company Description

Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers. The company's service offerings include Sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and Service that enables companies to deliver trusted and highly personalized customer service and support at scale. Its service offerings also comprise flexible platform that enables companies of various sizes, locations, and industries to build business apps to bring them closer to their customers with drag-and-drop tools; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, a system of engagement. In addition, the company's service offerings include Marketing offering that enables companies to plan, personalize, and optimize one-to-one customer marketing journeys; and Commerce offering, which empowers brands to unify the customer experience across mobile, web, social, and store commerce points. Further, its service offerings comprise Tableau, an end-to-end analytics solution serving various enterprise use cases; and MuleSoft, an integration offering that allows its customers to unlock data across their enterprise. The company provides its service offering for customers in financial services, healthcare and life sciences, manufacturing, and other industries. It also offers professional services; and in-person and online courses to certify its customers and partners on architecting, administering, deploying, and developing its service offerings. The company provides its services through direct sales; and consulting firms, systems integrators, and other partners. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.

How the Company Makes Money

Salesforce makes money primarily by selling subscriptions to its cloud software products and related support services. The core of its revenue model is recurring subscription revenue: customers pay per-user and/or usage-based fees (depending on the product) for access to Salesforce’s CRM applications (e.g., Sales Cloud and Service Cloud), industry-specific solutions, and platform capabilities used to build and run custom business applications. A meaningful portion of revenue also comes from professional services and other services, including implementation, consulting, training, and advisory work, which often supports adoption of its subscription products (though these services are generally intended to drive long-term subscription relationships rather than be the primary profit center). Additional revenue is generated through support and success plans, add-on products and platform services (such as analytics, integration, automation, and data products), and ecosystem-related activity via partners and independent software vendors that implement and extend Salesforce solutions (partnerships can drive subscription growth through system integrators, consulting partners, and app marketplace offerings). Overall, Salesforce’s earnings are driven mainly by renewals, expansions (customers buying more seats/products), and new customer acquisition across its cloud portfolio.

Salesforce Financial Statement Overview

Summary

Strong and growing free cash flow (to ~$14.4B in 2026) with good cash conversion supports earnings quality, and profitability has improved materially (net margin ~18% in 2026). Offsetting factors are decelerating recent revenue growth and some margin volatility (including a notable EBITDA margin step-down in 2026 vs 2025).

Income Statement

Salesforce shows solid top-line expansion over the period (revenue rising from ~$21.3B in 2021 to ~$41.5B in 2026), but growth has clearly decelerated in the most recent year (2026 revenue growth ~3.0%). Profitability has strengthened meaningfully versus 2022–2023, with net margin improving to ~18.0% in 2026 (vs ~0.7% in 2023) and gross margin holding strong in the mid-to-high 70% range. A notable watch item is margin volatility year-to-year (including a sharp dip in 2023) and a large step-down in EBITDA margin in 2026 versus 2025, suggesting earnings quality/mix is still moving around.

Balance Sheet

The balance sheet looks conservatively levered overall: debt has come down meaningfully from 2023–2024 levels to ~$6.7B in 2026, supported by a large equity base (~$59.1B). Total assets have expanded steadily to ~$112.3B, indicating scale and capacity to invest. The main concern is that returns on equity have been uneven historically (very low in 2022–2023 before improving in 2024–2025), pointing to some inconsistency in how efficiently equity capital has been translated into profits.

Cash Flow

Cash generation is a standout strength. Operating cash flow and free cash flow have climbed strongly over time (free cash flow from ~$4.1B in 2021 to ~$14.4B in 2026), and free cash flow growth remains robust in 2026 (~11.7%). Free cash flow tracks closely to net income (free cash flow is ~96% of net income in 2026), supporting earnings quality. The main weakness is that the provided cash-flow coverage metric is not consistently strong across earlier years, but overall cash conversion and absolute cash flow are very healthy.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	41.52B	37.90B	34.86B	31.35B	26.49B
Gross Profit	32.26B	29.25B	26.32B	22.99B	19.47B
EBITDA	13.15B	11.14B	9.22B	5.64B	3.85B
Net Income	7.46B	6.20B	4.14B	208.00M	1.44B
Balance Sheet
Total Assets	112.31B	102.93B	99.82B	98.85B	95.21B
Cash, Cash Equivalents and Short-Term Investments	9.56B	14.03B	14.19B	12.51B	10.54B
Total Debt	17.18B	11.39B	12.59B	14.09B	13.98B
Total Liabilities	53.16B	41.76B	40.18B	40.49B	37.08B
Stockholders Equity	59.14B	61.17B	59.65B	58.36B	58.13B
Cash Flow
Free Cash Flow	14.40B	12.43B	9.50B	6.31B	5.28B
Operating Cash Flow	15.00B	13.09B	10.23B	7.11B	6.00B
Investing Cash Flow	-8.59B	-3.16B	-1.33B	-1.99B	-14.54B
Financing Cash Flow	-8.08B	-9.43B	-7.48B	-3.56B	7.84B

Salesforce Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 195.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRM, the sentiment is Negative. The current price of 195.31 is above the 20-day moving average (MA) of 194.16, below the 50-day MA of 207.47, and below the 200-day MA of 240.83, indicating a neutral trend. The MACD of -2.30 indicates Negative momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 30.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRM.

Salesforce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOW	77 Outperform	$118.48B	90.88	15.42%	―	21.05%	28.67%
CRM	71 Outperform	$179.98B	27.05	12.37%	0.63%	8.41%	22.92%
HUBS	70 Outperform	$13.83B	458.50	2.30%	―	19.21%	75.32%
SAP	69 Neutral	$210.68B	34.25	16.82%	1.07%	11.85%	167.23%
WDAY	69 Neutral	$34.28B	66.22	7.97%	―	13.35%	-60.76%
MNDY	67 Neutral	$3.79B	63.93	9.88%	―	28.62%	186.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Salesforce Corporate Events

Salesforce Launches Massive Accelerated Share Repurchase Program

On March 16, 2026, Salesforce announced it had begun prepayment and initial delivery of about 103 million shares under its previously disclosed $25 billion accelerated share repurchase agreements, entered into on March 11, 2026. The transaction, described as the largest ASR in history, immediately executes half of the $50 billion buyback program approved by the board in February 2026, signaling strong confidence from leadership in the company’s growth and cash flow profile.

Salesforce has arranged the ASR with a syndicate of major global banks and expects final settlement in the third or fourth quarter of its fiscal 2027, with the ultimate share count tied to the stock’s volume-weighted average price over the program’s term. The move is poised to materially shrink the share count and underscores management’s commitment to shareholder returns, reinforcing Salesforce’s positioning and signaling conviction in its performance in what it calls the “Agentic Era.”

The most recent analyst rating on (CRM) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Salesforce stock, see the CRM Stock Forecast page.

Salesforce Completes Large Senior Notes Offering for Buybacks

On March 13, 2026, Salesforce completed a massive $25 billion multi-tranche offering of unsecured, unsubordinated senior notes, with maturities ranging from 2028 to 2066 and coupons between 4.500% and 6.700%. Interest on the notes will accrue from March 13, 2026 and be paid semi-annually, and the instruments rank pari passu with the company’s other unsecured, unsubordinated debt.

The company used the net proceeds of the offering to repurchase its common stock through accelerated share repurchase agreements, signaling a focus on shareholder returns financed via long-dated debt. The transaction further extends Salesforce’s maturity profile while embedding standard default and acceleration provisions, underscoring its continued reliance on public debt markets to manage capital structure and balance sheet optimization.

The most recent analyst rating on (CRM) stock is a Buy with a $221.00 price target. To see the full list of analyst forecasts on Salesforce stock, see the CRM Stock Forecast page.

Salesforce Launches Massive Debt-Funded Accelerated Share Repurchase

On March 11, 2026, Salesforce entered into accelerated share repurchase agreements with several major banks to buy back $25 billion of its common stock under its existing share repurchase program, with initial share delivery and cash payments scheduled for March 16, 2026 and final settlement expected in the fourth quarter of 2026. The move significantly scales up capital returns to shareholders and is structured so that the ultimate share count depends on the stock’s volume-weighted average price over the contract period.

Also on March 11, 2026, Salesforce agreed to issue multiple tranches of senior notes maturing between 2028 and 2066 in a registered public offering totaling tens of billions of dollars, with pricing slightly below par and closing expected on March 13, 2026, and it plans to use the roughly $24.9 billion in net proceeds entirely to fund the share repurchases. In a parallel balance sheet move, the company secured a new $6 billion five-year senior unsecured term loan facility to refinance two existing term loans maturing under 2025 credit agreements, extending its debt maturities while maintaining financial flexibility through customary covenants and prepayment options.

The most recent analyst rating on (CRM) stock is a Hold with a $229.00 price target. To see the full list of analyst forecasts on Salesforce stock, see the CRM Stock Forecast page.

Salesforce Streamlines Finance Leadership With New Accounting Role

On March 6, 2026, Salesforce announced an internal finance reorganization under which Robin Washington, the company’s Chief Operating and Financial Officer, will become its principal accounting officer effective March 9, 2026. The move consolidates key financial and accounting responsibilities under a single senior executive, potentially streamlining oversight without changing Washington’s existing compensation.

Sundeep Reddy, who previously served as principal accounting officer, will remain in his role as Chief Accounting Officer, signaling continuity in the company’s core accounting function. Salesforce disclosed that Washington’s appointment involves no special arrangements, family relationships, or material related-party transactions, underscoring an emphasis on governance transparency and regulatory compliance in its leadership changes.

The most recent analyst rating on (CRM) stock is a Hold with a $200.00 price target. To see the full list of analyst forecasts on Salesforce stock, see the CRM Stock Forecast page.