Salesforce (CRM)
NYSE:CRM
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Salesforce
(NYSE:CRM)
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Rating:71Outperform
Price Target:
$219.00
▲(12.20% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Salesforce (CRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$180.15B
Dividend Yield0.63%
Average Volume (3M)13.80M
Price to Earnings (P/E)27.0
Beta (1Y)1.25
Revenue Growth8.41%
EPS Growth22.92%
CountryUS
Employees76,453
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)3.81
Shares Outstanding923,000,000
10 Day Avg. Volume14,037,039
30 Day Avg. Volume13,801,131
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 Cap1.01
Enterprise Value/Revenue4.37
Enterprise Value/Gross Profit5.62
Enterprise Value/Ebitda14.25
Forecast
1Y Price Target
$264.94Price Target Upside35.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering37
EPS Forecast (FY)13.18
Revenue Forecast (FY)$46.11B
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. T...
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 th...
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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call presented multiple material positive developments: healthy top-line growth, sizable backlog and RPO expansion, rapid traction for Agentforce and Data 360 (large ARR growth and deal wins), strong usage metrics (19T tokens, 2.4B AWUs), upgraded FY30 target to $63B, and aggressive shareholder returns (dividend increase and $50B buyback). Challenges were acknowledged around Marketing/Commerce and Tableau performance, more modest organic CRPO beats in places, evolving monetization models (AWU/AELAs) with short-term margin neutrality but longer-term uncertainty, and partner-competitive risk. Overall, the positives — particularly the clear product and commercial momentum in Agentforce/Data 360, recurring revenue strength and capital allocation — substantially outweigh the isolated weaknesses, though execution on cross-sell and margin management will be important to sustain the momentum.Positive Updates
Strong Full-Year and Q4 Revenue Growth
FY26 revenue of $41.5B, up 10% year-over-year (9% constant currency). Q4 revenue of $11.2B, up 12% year-over-year (10% constant currency). Subscription and support grew slightly above 10% Y/Y.
Negative Updates
Weakness in Marketing, Commerce and Tableau
Management cited continued weakness in Marketing and Commerce businesses and weaker-than-expected Tableau performance, including on‑prem timing impacts affecting Q4 results.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Full-Year and Q4 Revenue Growth
FY26 revenue of $41.5B, up 10% year-over-year (9% constant currency). Q4 revenue of $11.2B, up 12% year-over-year (10% constant currency). Subscription and support grew slightly above 10% Y/Y.
Read all positive updates
Company Guidance
Salesforce guided fiscal 2027 revenue of $45.8 billion to $46.2 billion (≈10–11% growth nominal and constant currency), subscription & support growth of ~11% YoY (cc), non‑GAAP operating margin of 34.3% (up 20 bps) and GAAP operating margin of 20.9% (up 80 bps); Q1 revenue is guided to $11.03–$11.08 billion (≈12–13% nominal, 10–11% cc) with Q1 CRPO growth ~14% nominal (~13% cc). The company raised its FY2030 revenue target to $63 billion (an 11% CAGR from FY26–FY30), increased its share‑repurchase authorization to $50 billion, raised the quarterly dividend 5.8% to $0.44, and expects continued investment to drive adoption while remaining margin‑disciplined; for context FY26 results included $41.5B revenue (+10% YoY, 9% cc), Q4 revenue $11.2B (+12% YoY, 10% cc), CRPO $35.1B (+16% YoY, 13% cc), total RPO $72B (+14% YoY), Agentforce & Data 360 ARR >$2.9B (+200% YoY), >19 trillion tokens consumed and 2.4 billion Agentic Work Units to date.Salesforce Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
76
Positive
Cash Flow
91
Very Positive
| 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
Negative
195.18
Price Trends
204.75
Negative
227.45
Negative
240.16
Negative
Market Momentum
-2.01
Negative
46.97
Neutral
33.96
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 195.18 is below the 20-day moving average (MA) of 195.52, below the 50-day MA of 204.75, and below the 200-day MA of 240.16, indicating a bearish trend. The MACD of -2.01 indicates Negative momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.96 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $116.05B | 90.88 | 15.42% | ― | 21.05% | 28.67% | |
71 Outperform | $180.15B | 27.05 | 12.37% | 0.63% | 8.41% | 22.92% | |
70 Outperform | $13.82B | 458.50 | 2.30% | ― | 19.21% | 75.32% | |
69 Neutral | $202.95B | 34.25 | 16.82% | 1.07% | 11.85% | 167.23% | |
69 Neutral | $35.22B | 66.22 | 7.97% | ― | 13.35% | -60.76% | |
67 Neutral | $3.83B | 63.93 | 9.88% | ― | 28.62% | 186.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CRM
Salesforce
195.18
-91.56
-31.93%
SAP
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178.16
-100.31
-36.02%
WDAY
Workday
137.06
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NOW
ServiceNow
110.95
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-35.60%
HUBS
HubSpot
262.06
-365.05
-58.21%
MNDY
Monday.com
75.47
-201.88
-72.79%
Salesforce Corporate Events
Business Operations and StrategyStock Buyback
Salesforce Launches Massive Accelerated Share Repurchase Program
Positive
Mar 16, 2026
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, d...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Salesforce Completes Large Senior Notes Offering for Buybacks
Positive
Mar 13, 2026
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...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Salesforce Launches Massive Debt-Funded Accelerated Share Repurchase
Positive
Mar 12, 2026
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 sche...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Salesforce Streamlines Finance Leadership With New Accounting Role
Neutral
Mar 6, 2026
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 conso...
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.