Salesforce (CRM) AI Stock Analysis

• Market Cap: $244.15B
• Dividend Yield: 0.67%
• Average Volume (3M): 7.67M
• Price to Earnings (P/E): 34.8
• Beta (1Y): 1.35
• Revenue Growth: 8.41%
• EPS Growth: 22.92%
• Country: US
• Employees: 76,453
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.25
• Shares Outstanding: 937,000,000
• 10 Day Avg. Volume: 9,480,180
• 30 Day Avg. Volume: 7,669,380
• PEG Ratio: 1.03
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 8.67
• P/FCF Ratio: 26.44
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 6.16
• Enterprise Value/Gross Profit: 7.92
• Enterprise Value/Ebitda: 20.73
• 1Y Price Target: $326.08
• Price Target Upside: 25.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 39
• EPS Forecast (FY): 11.39
• Revenue Forecast (FY): $41.26B

• Rating: 80 Outperform
• Price Target: $298.00 ▲(14.82% Upside)

Salesforce's strong financial performance and positive earnings call sentiment are the most significant factors driving the overall score. The technical analysis suggests potential short-term volatility, while the high valuation indicates some risk of overvaluation. The company's strategic initiatives, including the Informatica acquisition and AI advancements, support its long-term growth prospects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

AI Integration

Integration of AI enhances product offerings, driving innovation and maintaining competitive edge in the evolving tech landscape.

Cash Flow Generation

Strong cash flow growth enhances liquidity and financial flexibility, enabling strategic investments and debt management.

Negative Factors

Challenges in Asia Pacific

Slower growth in Asia Pacific could limit global expansion efforts and affect overall revenue diversification.

Revenue Predictability Issues

Unpredictable revenue streams from key products may complicate financial forecasting and strategic planning.

Marketing and Commerce Weaknesses

Underperformance in marketing and commerce could hinder growth in these segments, impacting overall revenue potential.

Salesforce Business Overview & Revenue Model

Company Description

Salesforce is a leading customer relationship management (CRM) platform that provides a suite of cloud-based applications designed to help businesses manage their customer relationships, sales, marketing, and service operations. Founded in 1999, Salesforce operates primarily in the software sector, offering solutions such as Sales Cloud, Service Cloud, Marketing Cloud, and various industry-specific applications. The company also emphasizes innovation through its artificial intelligence platform, Einstein, and offers a robust ecosystem for developers via the Salesforce AppExchange.

How the Company Makes Money

Salesforce generates revenue primarily through subscription fees for its cloud-based software solutions. Its revenue model is predominantly based on a tiered pricing structure, where customers pay based on the number of users and the level of functionality they require. Key revenue streams include Sales Cloud, Service Cloud, Marketing Cloud, and additional products such as Tableau and MuleSoft, which are acquired technologies that integrate seamlessly with its core offerings. The company also benefits from professional services and training fees related to the deployment and optimization of its software. Significant partnerships with major tech companies, including Google and Amazon, enhance its offerings and expand its market reach, further contributing to its financial success.

Salesforce Financial Statement Overview

Summary

Salesforce exhibits strong financial health with consistent revenue growth, high profitability margins, and a solid balance sheet. The company's low leverage and strong cash flow generation further enhance its financial stability, positioning it well for future growth and resilience against potential market fluctuations.

Income Statement

Salesforce has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue of $40.32 billion, reflecting a growth rate of 2.06%. The company maintains robust profitability with a gross profit margin of 77.73% and a net profit margin of 24.75%. The EBIT and EBITDA margins are also healthy at 15.95% and 24.35%, respectively, indicating efficient operational management.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.045, suggesting minimal leverage risk. The return on equity (ROE) is 11.03%, indicating effective use of equity to generate profits. The equity ratio stands at 63.07%, reflecting a strong equity base relative to total assets.

Cash Flow

Salesforce's cash flow performance is robust, with a free cash flow growth rate of 3.19% in the TTM. The operating cash flow to net income ratio is 1.87, and the free cash flow to net income ratio is 1.79, indicating strong cash generation relative to net income. This suggests efficient cash management and the ability to fund operations and growth initiatives.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.90B	34.86B	31.35B	26.49B	21.25B
Gross Profit	29.25B	26.32B	22.99B	19.47B	15.81B
EBITDA	11.14B	9.22B	5.64B	3.85B	3.30B
Net Income	6.20B	4.14B	208.00M	1.44B	4.07B
Balance Sheet
Total Assets	102.93B	99.82B	98.85B	95.21B	66.30B
Cash, Cash Equivalents and Short-Term Investments	14.03B	14.19B	12.51B	10.54B	11.97B
Total Debt	11.39B	12.59B	14.09B	13.98B	6.28B
Total Liabilities	41.76B	40.18B	40.49B	37.08B	24.81B
Stockholders Equity	61.17B	59.65B	58.36B	58.13B	41.49B
Cash Flow
Free Cash Flow	12.43B	9.50B	6.31B	5.28B	4.09B
Operating Cash Flow	13.09B	10.23B	7.11B	6.00B	4.80B
Investing Cash Flow	-3.16B	-1.33B	-1.99B	-14.54B	-3.97B
Financing Cash Flow	-9.43B	-7.48B	-3.56B	7.84B	1.19B

Salesforce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 259.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRM, the sentiment is Positive. The current price of 259.53 is above the 20-day moving average (MA) of 238.03, above the 50-day MA of 243.90, and above the 200-day MA of 258.63, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 65.26 is Neutral, neither overbought nor oversold. The STOCH value of 92.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRM.

Salesforce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRM	80 Outperform	$244.15B	34.77	12.18%	0.67%	8.41%	22.92%
NOW	75 Outperform	$177.26B	103.21	16.81%	―	21.05%	28.68%
WDAY	73 Outperform	$57.85B	92.35	7.34%	―	13.35%	-60.76%
SAP	69 Neutral	$290.57B	36.73	16.30%	1.08%	11.85%	167.23%
MNDY	66 Neutral	$7.97B	128.00	5.81%	―	28.62%	186.67%
HUBS	65 Neutral	$19.90B	―	-0.20%	―	19.21%	75.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Salesforce Corporate Events

Salesforce Completes Acquisition of Informatica

On November 18, 2025, Salesforce announced the completion of its acquisition of Informatica, a leader in AI-powered cloud data management. This acquisition enhances Salesforce’s platform by integrating Informatica’s data management capabilities, providing a unified data foundation for AI operations. The deal is expected to strengthen Salesforce’s Data 360 and Agentforce 360 platforms, offering improved data clarity, integration, and context-rich insights. Informatica will continue its mission within Salesforce, supporting AI-ready data management and integration with its ecosystem of partners. Salesforce anticipates achieving financial accretion within 12 months, aligning with its responsible M&A framework.

Salesforce Sets $60B Revenue Target by 2030

On October 15, 2025, Salesforce announced during its Investor Day event at Dreamforce a new long-term revenue target of over $60 billion by fiscal year 2030, aiming for a 10%+ organic CAGR from FY26 to FY30. The company introduced a Profitable Growth Framework to achieve sustained double-digit revenue growth, leveraging product innovation and a robust go-to-market model. Salesforce’s Data and AI offerings have shown significant momentum, with a 120% year-over-year growth in Q2, and the company sees potential for significant ARR uplift through its Agentforce product.