Salesforce (CRM) AI Stock Analysis

• Market Cap: $250.11B
• Dividend Yield: 0.61%
• Average Volume (3M): 6.82M
• Price to Earnings (P/E): 40.9
• Beta (1Y): 1.32
• Revenue Growth: 7.97%
• EPS Growth: 14.85%
• Country: US
• Employees: 76,453
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 2.58
• Shares Outstanding: 956,000,000
• 10 Day Avg. Volume: 9,864,623
• 30 Day Avg. Volume: 6,817,213
• PEG Ratio: 88.24
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.89
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.68
• Enterprise Value/Gross Profit: 8.44
• Enterprise Value/Ebitda: 5.83
• 1Y Price Target: $350.30
• Price Target Upside: 33.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 46

• Rating: 72 Outperform
• Price Target: $294.00 ▲(11.71%Upside)

Salesforce's overall stock score reflects strong financial performance and positive earnings guidance, which are offset by technical analysis indicating bearish momentum and high valuation concerns. The strategic acquisition of Informatica is expected to enhance future growth, but current technical indicators and valuation metrics warrant caution.

Positive Factors

Acquisition

Salesforce announced it has reached an agreement to acquire INFA for $25 per share in cash.

Earnings

Salesforce’s solid results and raised topline guidance indicate strong company performance.

Negative Factors

Economic Conditions

Global economic uncertainty may lead to a reduction in enterprise spending on CRM applications.

Market Reaction

Market reacted more negatively than anticipated, with questions centered on Core performance, margins, and Agentforce.

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 subscriptions and support services related to its cloud-based software. The company operates on a subscription model, where customers pay a recurring fee to access its software offerings. This model ensures a steady and predictable revenue stream. Salesforce also earns revenue from professional services, which include consulting, implementation, and training services aimed at helping customers maximize the value of their Salesforce solutions. Significant partnerships with companies like Amazon Web Services (AWS) and strategic acquisitions, such as Tableau and Slack, have bolstered its offerings and expanded its market reach, contributing further to its revenue.

Salesforce Financial Statement Overview

Summary

Salesforce's financial statements highlight strong growth, profitability, and cash flow generation. The income statement reflects robust revenue and margin performance, while the balance sheet shows a stable capital structure with manageable leverage. The cash flow statement underscores the company's ability to generate and manage cash effectively.

Income Statement

Salesforce demonstrated robust revenue growth with a TTM increase of approximately 10% year-over-year. The company maintains strong profitability metrics, with a gross profit margin of 77.3% and a net profit margin of 16.1% for the TTM. The EBIT and EBITDA margins have also shown healthy levels at 19.3% and 29.5% respectively. Overall, Salesforce's income statement reflects strong revenue growth and profitability, positioning it well in the competitive software industry.

Balance Sheet

Salesforce's balance sheet shows a solid equity position with a debt-to-equity ratio of 0.19 and an equity ratio of 61.5% as of TTM. The company's return on equity stands at 10.2%, indicating effective use of shareholders' capital. The balance sheet reflects a stable financial structure, though the slight increase in total debt warrants monitoring.

Cash Flow

The company's cash flow performance is strong, with significant free cash flow growth of approximately 33% over the past year. The operating cash flow to net income ratio stands at 2.15, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is 2.04, showcasing efficient conversion of earnings into cash. Overall, Salesforce exhibits healthy cash flow management with substantial free cash flow improvements.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
38.59B	37.90B	34.86B	31.35B	26.49B	21.25B
	Gross Profit
29.84B	29.25B	26.32B	22.99B	19.47B	15.81B
	EBIT
7.44B	7.21B	5.01B	1.03B	548.00M	455.00M
	EBITDA
11.37B	11.14B	9.22B	5.64B	3.85B	3.30B
	Net Income Common Stockholders
6.21B	6.20B	4.14B	208.00M	1.44B	4.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.03B	14.03B	14.19B	12.51B	10.54B	11.97B
	Total Assets
102.93B	102.93B	99.82B	98.85B	95.21B	66.30B
	Total Debt
11.39B	11.39B	12.59B	14.09B	13.98B	6.28B
	Net Debt
2.54B	2.54B	4.12B	7.07B	8.52B	86.00M
	Total Liabilities
41.76B	41.76B	40.18B	40.49B	37.08B	24.81B
	Stockholders Equity
61.17B	61.17B	59.65B	58.36B	58.13B	41.49B
Cash Flow		Free Cash Flow
12.65B	12.43B	9.50B	6.31B	5.28B	4.09B
	Operating Cash Flow
13.32B	13.09B	10.23B	7.11B	6.00B	4.80B
	Investing Cash Flow
-2.08B	-3.16B	-1.33B	-1.99B	-14.54B	-3.97B
	Financing Cash Flow
-10.24B	-9.43B	-7.48B	-3.56B	7.84B	1.19B

Salesforce Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 263.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 263.17 is below the 20-day moving average (MA) of 278.67, below the 50-day MA of 268.34, and below the 200-day MA of 295.24, indicating a bearish trend. The MACD of -2.05 indicates Positive momentum. The RSI at 39.65 is Neutral, neither overbought nor oversold. The STOCH value of 26.10 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
INTU	80 Outperform	$213.30B	62.22	17.84%	0.53%	14.99%	12.89%
SAP	78 Outperform	$359.15B	58.16	12.81%	0.62%	9.39%	201.10%
WDAY	75 Outperform	$66.15B	138.66	5.70%	―	15.38%	-67.58%
NOW	75 Outperform	$209.66B	137.22	16.86%	―	21.01%	-20.93%
CRM	72 Outperform	$250.11B	40.92	10.31%	0.61%	7.97%	14.85%
HUBS	70 Neutral	$31.65B	7,452.21	-1.34%	―	19.17%	83.20%
Sector *	62 Neutral	$11.70B	10.39	-7.10%	2.92%	7.45%	-8.42%

Salesforce Corporate Events

Salesforce Announces Acquisition of Informatica for $8 Billion

On May 27, 2025, Salesforce announced its definitive agreement to acquire Informatica for approximately $8 billion. This acquisition aims to enhance Salesforce’s data foundation for deploying AI by integrating Informatica’s data management capabilities with Salesforce’s platform. The merger is expected to create a comprehensive data platform, strengthening Salesforce’s position in the enterprise data market and enabling more effective AI-driven business operations. The transaction is anticipated to close early in Salesforce’s fiscal year 2027, pending regulatory approvals, and is expected to bring financial benefits starting in the second year post-closing.

The most recent analyst rating on (CRM) stock is a Hold with a $311.00 price target. To see the full list of analyst forecasts on Salesforce stock, see the CRM Stock Forecast page.