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Salesforce
(NYSE:CRM)
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Rating:81Outperform
Price Target:
$196.00
▲(7.61% Upside)
Action:Reiterated
Date:06/03/26
High score driven primarily by strong financial quality (profitability, cash generation, and low leverage) and a constructive earnings call with raised FY27 revenue outlook and strong contract/AI traction. The main constraints are an overextended technical setup (RSI/Stoch elevated) and only moderately attractive valuation support (P/E ~22.7, low dividend yield).
Positive Factors
Cash generation
Salesforce's very large and high-quality cash generation (OCF $15.2B, FCF $14.7B) is a durable fundamental advantage. Recurring subscription revenue converts efficiently to cash, funding R&D, strategic M&A, and shareholder returns while providing flexibility through business cycles and supporting long-term investments in AI and platform scale.
Negative Factors
Revenue growth slowdown
A marked slowdown in top-line growth to roughly 3% TTM is a structural concern: it limits operating leverage and forces greater reliance on margin expansion, buybacks, and upsell to sustain EPS growth. If sustained, muted new-book growth constrains long-term scalability and investor optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Salesforce's very large and high-quality cash generation (OCF $15.2B, FCF $14.7B) is a durable fundamental advantage. Recurring subscription revenue converts efficiently to cash, funding R&D, strategic M&A, and shareholder returns while providing flexibility through business cycles and supporting long-term investments in AI and platform scale.
Read all positive factors
Salesforce Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Salesforce is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Salesforce is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySalesforce (CRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$136.43B
Dividend Yield0.63%
Average Volume (3M)17.01M
Price to Earnings (P/E)18.7
Beta (1Y)1.14
Revenue Growth10.98%
EPS Growth34.24%
CountryUS
Employees76,453
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)8.67
Shares Outstanding819,000,000
10 Day Avg. Volume11,863,328
30 Day Avg. Volume17,012,704
Financial Highlights & Ratios
PEG Ratio1.24
Price to Book (P/B)3.41
Price to Sales (P/S)4.86
P/FCF Ratio14.00
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue3.73
Enterprise Value/Gross Profit4.81
Enterprise Value/Ebitda11.42
Forecast
1Y Price Target
$244.21Price Target Upside34.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering36
EPS Forecast (FY)14.15
Revenue Forecast (FY)$46.13B
Salesforce Business Overview & Revenue Model
Company Description
Salesforce, Inc. is a leading provider of customer relationship management (CRM) solutions, dedicated to connecting businesses and their clientele on a global scale. At its core, the Customer 360 platform empowers organizations to create seamless,...
How the Company Makes Money
Salesforce makes money primarily by selling subscriptions to its cloud software (software-as-a-service). The core revenue stream is recurring subscription revenue from customers who license Salesforce products on a per-user and/or usage-based basi...
Salesforce Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
Overall the call emphasized strong growth and accelerating adoption of Salesforce's agentic products: record revenue, margin expansion, very large token and usage growth, strong large-deal activity, meaningful Slack and Headless 360 momentum, and aggressive capital return actions. Offsetting these positives were pockets of product softness (Commerce, Tableau, Marketing), greater near-term revenue volatility from Informatica on‑prem timing, a temporary cash-flow headwind from debt issued to fund the ASR, and higher restructuring charges affecting GAAP margin guidance. The positives — especially rapid adoption metrics, strong cash generation, record large deals, and improving operating margins — materially outweigh the listed headwinds.Positive Updates
Record Revenue and Margin Expansion
Revenue of $11.13 billion in Q1, up 13% year-over-year nominal (12% in constant currency). Q1 non-GAAP operating margin improved to 34.8% (up 250 basis points) and GAAP operating margin rose to 21.1% (up 130 basis points). Generated $6.7 billion in operating cash flow.
Negative Updates
Weakness in Commerce, Tableau and Marketing
Management called out continued softness in Commerce, Tableau bookings and renewals, and ongoing weakness in Marketing and Commerce, which partially offset other growth drivers.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Revenue and Margin Expansion
Revenue of $11.13 billion in Q1, up 13% year-over-year nominal (12% in constant currency). Q1 non-GAAP operating margin improved to 34.8% (up 250 basis points) and GAAP operating margin rose to 21.1% (up 130 basis points). Generated $6.7 billion in operating cash flow.
Read all positive updates
Company Guidance
Salesforce raised its FY27 revenue midpoint to $45.9–$46.2B and expects subscription & support growth of ~11% YoY in constant currency, reiterated non‑GAAP operating margin guidance of 34.3% while adjusting GAAP operating margin to 20.6% (higher restructuring), and updated operating cash flow and free cash flow growth to 4–5% YoY (citing an approximate 5‑point headwind from debt issued to fund a $25B accelerated share repurchase). For Q2 it guided revenue of $11.27–$11.35B (~10% CC) and CRPO growth of ~13% YoY CC, said first‑half net‑new ACV should outpace ACV to drive organic reacceleration in H2 FY27, and highlighted capital actions that reduced Q1 share count by ~103M shares (~11% of outstanding, ~10% YoY reduction) and boosted Q1 EPS by $0.23 (non‑GAAP) / $0.14 (GAAP); management pointed to usage and product traction (BrentForce ARR > $1B, combined AI & Data ARR $3.4B, 28.6T tokens processed up 152% QoQ, 3.8B Agentic work units up 111% QoQ) as support for the outlook.Salesforce Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.83B | 41.52B | 37.90B | 34.86B | 31.35B | 26.49B |
| Gross Profit | 33.25B | 32.26B | 29.25B | 26.32B | 22.99B | 19.47B |
| EBITDA | 14.00B | 13.15B | 11.14B | 9.22B | 5.64B | 5.05B |
| Net Income | 8.02B | 7.46B | 6.20B | 4.14B | 208.00M | 1.44B |
Balance Sheet | ||||||
| Total Assets | 106.68B | 112.31B | 102.93B | 99.82B | 98.85B | 95.21B |
| Cash, Cash Equivalents and Short-Term Investments | 11.84B | 9.56B | 14.03B | 14.19B | 12.51B | 10.54B |
| Total Debt | 41.88B | 17.18B | 11.39B | 12.59B | 14.09B | 13.98B |
| Total Liabilities | 72.44B | 53.16B | 41.76B | 40.18B | 40.49B | 37.08B |
| Stockholders Equity | 34.23B | 59.14B | 61.17B | 59.65B | 58.36B | 58.13B |
Cash Flow | ||||||
| Free Cash Flow | 14.66B | 14.40B | 12.43B | 9.50B | 6.31B | 5.28B |
| Operating Cash Flow | 15.22B | 15.00B | 13.09B | 10.23B | 7.11B | 6.00B |
| Investing Cash Flow | -9.21B | -8.59B | -3.16B | -1.33B | -1.99B | -14.54B |
| Financing Cash Flow | -8.08B | -8.08B | -9.43B | -7.48B | -3.56B | 7.84B |
Salesforce Technical Analysis
Negative
182.14
Price Trends
172.96
Negative
179.62
Negative
209.71
Negative
Market Momentum
-2.66
Negative
46.24
Neutral
72.00
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 182.14 is above the 20-day moving average (MA) of 160.45, above the 50-day MA of 172.96, and below the 200-day MA of 209.71, indicating a neutral trend. The MACD of -2.66 indicates Negative momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 72.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRM.
Salesforce Risk Analysis
Salesforce disclosed 36 risk factors in its most recent earnings report. Salesforce reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Salesforce Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $136.43B | 18.74 | 14.95% | 0.63% | 10.98% | 34.24% | |
73 Outperform | $111.15B | 64.40 | 14.98% | ― | 21.72% | 13.59% | |
72 Outperform | $184.39B | 21.49 | 17.25% | 1.07% | 14.77% | 41.36% | |
72 Outperform | $10.13B | 107.93 | 5.02% | ― | 21.05% | ― | |
71 Outperform | $4.15B | 35.74 | 10.69% | ― | 25.42% | 125.90% | |
63 Neutral | $34.06B | 42.96 | 10.41% | ― | 13.70% | 76.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CRM
Salesforce
162.50
-93.40
-36.50%
SAP
SAP SE
158.46
-138.66
-46.67%
WDAY
Workday
138.34
-85.03
-38.07%
NOW
ServiceNow
108.84
-78.92
-42.03%
HUBS
HubSpot
205.95
-318.32
-60.72%
MNDY
Monday.com
83.65
-200.96
-70.61%
Salesforce Corporate Events
Executive/Board Changes
Salesforce Appoints Veteran Auditor as Chief Accounting Officer
Positive
Jun 2, 2026
Salesforce has appointed veteran auditor Guy Wanger, 64, as its Chief Accounting Officer and principal accounting officer, effective June 15, 2026, following a May 27, 2026 decision by the board. Wanger brings nearly four decades of experience at ...
Business Operations and StrategyShareholder Meetings
Salesforce shareholders back board, governance and equity plans
Positive
Jun 1, 2026
At its 2026 Annual Meeting of Stockholders held on May 28, 2026, Salesforce investors re-elected the full slate of directors, ratified Ernst Young LLP as independent auditor for the fiscal year ending January 31, 2027, and approved on an advisory...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.