Salesforce (CRM) AI Stock Analysis

• Market Cap: $246.25B
• Dividend Yield: 0.65%
• Average Volume (3M): 7.57M
• Price to Earnings (P/E): 40.3
• Beta (1Y): 1.38
• Revenue Growth: 7.97%
• EPS Growth: 14.85%
• Country: US
• Employees: 76,453
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Application
• EPS (TTM): 2.58
• Shares Outstanding: 956,000,000
• 10 Day Avg. Volume: 5,646,432
• 30 Day Avg. Volume: 7,572,585
• PEG Ratio: 86.49
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.50
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 8.28
• Enterprise Value/Ebitda: 5.72
• 1Y Price Target: $348.03
• Price Target Upside: 33.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 45

• Rating: 77 Outperform
• Price Target: $308.00 ▲(18.52%Upside)

Salesforce's strong financial performance and positive earnings call contribute significantly to its overall score. Despite a high valuation, the company's robust growth prospects and strategic acquisitions position it well for future success. Technical analysis suggests some near-term uncertainty, but the long-term outlook remains positive.

Positive Factors

Cost Efficiency

Using Sales Cloud as a proxy, Unlimited Edition is estimated to be ~70% more cost effective when bundled, while the Agentforce 1 tier is a more material ~100%+ more cost effective relative to Unlimited on a like-for-like functionality basis.

Financial Performance

Analyst maintains a Buy rating on CRM given the view that top line growth has bottomed and is likely to reaccelerate from here.

Product Innovation

Service Cloud is expected to capture the most incremental growth in the industry, driven by advantages such as intuitive interface, powerful customization and analytics capabilities, integration across sales and service functions, and agentic innovation with the new Agentforce offering.

Negative Factors

Adoption Challenges

There is a lack of customers with Agentforce in production, indicating slow transition from interest to operational use.

Cost Barriers

Cost was a significant barrier to Agentforce adoption, with initial pricing leading to high usage bills during POCs.

Market Competition

Growth is uninspiring, competition dynamic, software in transition, and the macro environment is treacherous.

Salesforce Business Overview & Revenue Model

Company Description

Salesforce, Inc. (CRM) is a leading global provider of customer relationship management (CRM) software and applications. Operating primarily in the cloud computing sector, Salesforce offers a suite of enterprise applications focused on customer service, marketing automation, analytics, and application development. Its flagship product, Sales Cloud, enables sales professionals to manage customer relationships and sales pipelines efficiently. Salesforce's other core products include Service Cloud, Marketing Cloud, Commerce Cloud, and Tableau, which provide comprehensive solutions for customer service, marketing, commerce, and data visualization, respectively.

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 demonstrate 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 strong 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 259.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 259.88 is below the 20-day moving average (MA) of 266.20, below the 50-day MA of 271.15, and below the 200-day MA of 296.13, indicating a bearish trend. The MACD of -2.58 indicates Positive momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 13.75 is Positive, 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	$208.08B	60.70	17.84%	0.55%	14.99%	12.89%
SAP	78 Outperform	$352.83B	58.59	12.81%	0.86%	9.39%	201.10%
CRM	77 Outperform	$246.25B	40.29	10.31%	0.65%	7.97%	14.85%
NOW	74 Outperform	$200.31B	130.20	16.86%	―	21.01%	-20.93%
WDAY	72 Outperform	$60.05B	125.20	5.70%	―	15.38%	-67.58%
HUBS	64 Neutral	$27.89B	7,452.21	-1.34%	―	19.17%	83.20%
Sector *	50 Neutral	C$3.01B	2.40	-63.12%	2.48%	4.49%	-6.07%

Salesforce Corporate Events

Salesforce Appoints Amy Chang and David Kirk to Board

On July 9, 2025, Salesforce announced the appointment of Amy Chang and David Kirk to its Board of Directors. These appointments aim to enhance the board’s innovation leadership and technical expertise, particularly in the agentic AI era. Both Chang and Kirk bring significant experience in technology and AI, which is expected to support Salesforce’s strategy and governance, driving shareholder value and societal impact through innovation and sustainable growth.

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.

Salesforce Secures Credit Agreements for Informatica Acquisition

On June 20, 2025, Salesforce entered into two significant credit agreements to support its pending acquisition of Informatica Inc. The 364-Day Credit Agreement allows Salesforce to borrow up to $4 billion, while the Three-Year Credit Agreement permits borrowing up to $2 billion, both on an unsecured basis. These agreements aim to finance part of the acquisition costs and related expenses. The loans are contingent upon certain conditions and are expected to impact Salesforce’s financial operations and strategic positioning in the industry.

The most recent analyst rating on (CRM) stock is a Hold with a $309.00 price target. To see the full list of analyst forecasts on Salesforce stock, see the CRM Stock Forecast page.

Salesforce Stockholders Approve Equity Incentive Plan Amendment

At its 2025 Annual Meeting of Stockholders held on June 5, 2025, Salesforce, Inc. announced that its stockholders approved an amendment and restatement of the company’s 2013 Equity Incentive Plan. This amendment increases the number of shares reserved for issuance by an additional 34 million shares and extends the plan’s termination date to March 27, 2035. The meeting also included the election of directors, ratification of Ernst & Young LLP as the independent auditor for the fiscal year ending January 31, 2026, and an advisory vote on executive compensation. These decisions are expected to impact Salesforce’s operational strategies and shareholder value positively.

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.

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.