Salesforce (CRM) AI Stock Analysis

• Market Cap: $239.39B
• Dividend Yield: 0.65%
• Average Volume (3M): 9.16M
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.32
• Revenue Growth: 8.33%
• EPS Growth: 19.69%
• Country: US
• Employees: 76,453
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.91
• Shares Outstanding: 952,000,000
• 10 Day Avg. Volume: 10,238,853
• 30 Day Avg. Volume: 9,160,526
• 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: 6.20
• Enterprise Value/Gross Profit: 7.99
• Enterprise Value/Ebitda: 20.88
• 1Y Price Target: $330.36
• Price Target Upside: 29.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 40

• Rating: 75 Outperform
• Price Target: $277.00 ▲(8.94% Upside)

Salesforce's strong earnings call performance and robust financial health are the primary drivers of its overall score. The company's strategic focus on AI and data cloud, along with raised guidance, highlights its growth potential. However, technical indicators suggest short-term caution, and the high valuation may limit upside potential.

Positive Factors

AI and Data Cloud Growth

Salesforce's significant growth in AI and Data Cloud indicates strong market demand and positions the company as a leader in AI-driven CRM solutions, enhancing its competitive advantage.

Strategic UK Investment

The $6B investment in the UK underscores Salesforce's commitment to expanding its European presence, fostering innovation, and leveraging the UK as an AI hub, which supports long-term growth.

Strong Financial Health

A low debt-to-equity ratio indicates minimal leverage risk, providing Salesforce with financial flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Slowing Revenue Growth

Decelerating revenue growth could signal market saturation or increased competition, potentially impacting Salesforce's ability to maintain its market position and growth trajectory.

Cash Flow Challenges

A decline in free cash flow growth may indicate challenges in cash management, which could affect Salesforce's ability to fund operations and strategic initiatives without external financing.

Market Weakness

Weak performance in key markets like the UK and Japan could hinder Salesforce's international expansion efforts and limit its revenue diversification strategy.

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 generates revenue primarily through subscription fees for its cloud-based services. The company's revenue model is based on a Software as a Service (SaaS) approach, where customers pay for access to its various CRM solutions on a subscription basis, typically billed annually. Key revenue streams include individual product subscriptions, bundled packages, and add-on services. Additionally, Salesforce earns revenue from professional services, such as consulting, implementation, and training. The company has entered into significant partnerships with other tech firms, such as Google and Amazon Web Services, which enhance its offerings and contribute to customer acquisition. Furthermore, Salesforce's AppExchange marketplace allows third-party developers to create and sell applications that integrate with its platform, generating additional revenue through partner commissions.

Salesforce Financial Statement Overview

Summary

Salesforce exhibits strong financial health with robust profitability and a solid balance sheet. The company has effectively managed its leverage and maintained strong cash flow metrics, although recent growth rates have moderated. Continued focus on revenue growth and cash flow management will be key to sustaining its financial performance.

Income Statement

Salesforce demonstrates strong profitability with a consistent increase in gross profit margin, reaching 77.6% in TTM. The net profit margin has improved significantly to 16.9% in TTM, indicating enhanced cost management and operational efficiency. Revenue growth has slowed to 2.36% in TTM, but the company maintains robust EBIT and EBITDA margins at 21.2% and 29.7%, respectively, showcasing solid operational performance.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.046 in TTM, indicating minimal leverage risk. Return on equity has improved to 11.0% in TTM, reflecting effective use of shareholder funds. The equity ratio remains strong, highlighting a stable capital structure. However, the slight decrease in total assets suggests a need for strategic asset management.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth, down by 1.19% in TTM, which could indicate potential cash management challenges. However, the operating cash flow to net income ratio of 0.58 and a free cash flow to net income ratio of 0.95 in TTM demonstrate strong cash generation relative to earnings, supporting liquidity and operational flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	39.50B	37.90B	34.86B	31.35B	26.49B	21.25B
Gross Profit	30.67B	29.25B	26.32B	22.99B	19.47B	15.81B
EBITDA	11.73B	11.14B	9.22B	5.64B	3.85B	3.30B
Net Income	6.66B	6.20B	4.14B	208.00M	1.44B	4.07B
Balance Sheet
Total Assets	97.57B	102.93B	99.82B	98.85B	95.21B	66.30B
Cash, Cash Equivalents and Short-Term Investments	15.37B	14.03B	14.19B	12.51B	10.54B	11.97B
Total Debt	2.80B	12.07B	12.59B	14.09B	13.98B	6.28B
Total Liabilities	36.24B	41.76B	40.18B	40.49B	37.08B	24.81B
Stockholders Equity	61.33B	61.17B	59.65B	58.36B	58.13B	41.49B
Cash Flow
Free Cash Flow	12.50B	12.43B	9.50B	6.31B	5.28B	4.09B
Operating Cash Flow	13.17B	13.09B	10.23B	7.11B	6.00B	4.80B
Investing Cash Flow	-3.56B	-3.16B	-1.33B	-1.99B	-14.54B	-3.97B
Financing Cash Flow	-6.94B	-9.43B	-7.48B	-3.56B	7.84B	1.19B

Salesforce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 254.26
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 254.26 is above the 20-day moving average (MA) of 246.80, above the 50-day MA of 246.57, and below the 200-day MA of 270.95, indicating a neutral trend. The MACD of 3.07 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 57.26 is Neutral, 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
NOW	―	$195.09B	118.05	16.95%	―	21.12%	43.91%
ADBE	―	$141.43B	21.05	52.87%	―	10.69%	35.19%
CRM	―	$239.39B	36.92	11.20%	0.65%	8.33%	19.69%
WDAY	―	$61.77B	107.00	6.66%	―	14.21%	-62.56%
SAP	―	$304.02B	40.11	16.30%	0.97%	11.85%	167.23%
ORCL	―	$800.59B	65.01	71.15%	0.69%	9.67%	11.23%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Salesforce Corporate Events

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.

The most recent analyst rating on (CRM) stock is a Buy with a $365.00 price target. To see the full list of analyst forecasts on Salesforce stock, see the CRM Stock Forecast page.

Salesforce Reports Strong Q2 2026 Financial Results

Salesforce.com is a leading company in the technology sector, specializing in customer relationship management (CRM) software and services, with a strong focus on integrating artificial intelligence (AI) to enhance business operations.

Salesforce Earnings Call Highlights Record Growth and Strategic Wins

Salesforce’s recent earnings call painted a picture of robust growth and strategic advancements, despite facing some market-specific challenges. The overall sentiment was positive, driven by record-breaking revenue, significant growth in AI and Data Cloud, and strategic wins in the public sector and IT service management. While there were hurdles in certain markets and product areas, the company’s strong financial performance and strategic initiatives were the highlights of the call.

Salesforce Reports Record Q2 Results and Share Buyback

Salesforce announced record results for the second quarter of fiscal 2026, ending July 31, 2025, with a 10% year-over-year revenue increase to $10.2 billion. The company also reported a significant $20 billion increase in its share repurchase program, highlighting its strong financial performance and commitment to maximizing shareholder value. The quarter saw notable achievements such as a 120% increase in Data Cloud and AI annual recurring revenue, and the closure of over 12,500 deals since the launch of Agentforce. Salesforce’s guidance for fiscal 2026 indicates continued growth, with raised revenue and operating cash flow expectations, underscoring its robust market positioning and strategic focus on AI-driven enterprise solutions.

The most recent analyst rating on (CRM) stock is a Buy with a $405.00 price target. To see the full list of analyst forecasts on Salesforce stock, see the CRM Stock Forecast page.