Want to see CRM full AI Analyst Report?
Salesforce (CRM) AI Stock Analysis
Salesforce
(NYSE:CRM)
The score is driven primarily by strong financial performance (high margins and very robust free-cash-flow generation) and a constructive earnings-call outlook with raised guidance and accelerating AI/Agentforce adoption signals. Technicals also support the view with the stock trading above major moving averages, while valuation is only moderately supportive due to a mid-20s P/E and a low dividend yield.
Salesforce Key Performance Indicators (KPIs)
Revenue by GeographyBreaks down where Salesforce earns its money across regions, revealing dependence on the U.S. versus international markets, exposure to currency and economic cycles, and where the biggest growth opportunities or concentration risks lie.
Americas remains the revenue backbone, but EMEA and APAC have been growing faster percentage-wise—late‑2025 jumps narrowed the gap, reflecting outsized large‑deal wins and rapid adoption of AI/agentic products internationally. The small QoQ softening in early‑2026 looks like timing volatility (Informatica on‑prem licenses) and seasonality rather than demand loss. Management’s CRPO and subscription guidance (mid‑teens backlog growth, ~11% S&S CC) supports continued international momentum, though license timing and the ASR‑funded debt create near‑term cash‑flow and earnings volatility to monitor.
The FlySalesforce (CRM) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $188.61B
- Dividend Yield
- 0.76%
- Average Volume (3M)
- 11.86M
- Price to Earnings (P/E)
- 20.8
- Beta (1Y)
- 1.09
- Revenue Growth
- 11.23%
- EPS Growth
- 58.19%
- Country
- US
- Employees
- 83,334
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
Salesforce Business Overview & Revenue Model
Company Description
Salesforce, Inc. is a leading provider of customer relationship management (CRM) solutions, dedicated to connecting businesses and their clientele on a global scale. At its core, the Customer 360 platform empowers organizations to create seamless, in...
How the Company Makes Money
Salesforce primarily makes money by selling cloud software subscriptions, typically priced per user (or by usage/feature tiers) and billed on multi-month or annual contracts. Subscription revenue comes from its CRM and related cloud offerings (e.g.,...
Salesforce Earnings Call Summary
The call presented broad, measurable commercial and operational progress across revenue, cash flow, AI/Agentforce adoption, Slack momentum and large customer wins. Management raised FY guidance and highlighted accelerating consumption metrics (cRPO, AWUs, Agentforce ARR) and improving contract economics. Challenges cited were concentrated in license revenue volatility, early-stage monetization of headless offerings, and pockets of uneven marketing recovery and adoption — but these are outweighed by the magnitude of adoption and monetization opportunities (flexible pricing, packaged agents, major contracts like the U.S. Army). Overall, highlights significantly outweigh lowlights, signaling constructive momentum as Salesforce transitions to agentic, headless and multi-surface delivery.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management raised FY‑27 revenue guidance by about $300 million in constant currency (roughly $100M organic plus ~$200M expected from the anticipated Contentful and Fin closings) to $46.1–$46.4 billion (now including a ~$100M FX headwind), held non‑GAAP operating margin at ~34.3% and updated GAAP operating margin to ~20.1%, and expects operating and free cash flow to grow ~4–5% year‑over‑year; they guided Q3 revenue to $11.42–$11.50 billion (≈11–12% CC growth) with Q3 cRPO growth of ~14% YoY CC. These targets follow Q2 results of $11.35B revenue (+11% YoY), subscription & support $10.82B (+12% YoY nominal, +11% CC), cRPO $33.5B (+14% CC), and $1.1B free cash flow (+81% YoY), and lean on strong AI/consumption momentum (Agentforce ARR $1.5B, AI/data ARR near $4B, 3.2B AWUs in Q2 up 97% Q/Q, Slackbot 1M active users up 150% Q/Q, agentic calls ~6x, and A1E/A4X bookings more than doubled Q/Q).
Salesforce Financial Statement Overview
Summary
Strong and improving profitability (TTM gross margin ~77%, net margin ~22%, EBIT margin ~18%) and excellent free cash flow generation (~$15.2B TTM with ~96% conversion vs net income). The main offset is slower recent revenue growth (TTM ~2.6%), which reduces the overall growth-quality profile; balance sheet is generally healthy but leverage trends appear somewhat mixed across periods.
Income Statement
86Very PositiveBalance Sheet
78PositiveCash Flow
90Very Positive| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.94B | 41.52B | 37.90B | 34.86B | 31.35B | 26.49B |
| Gross Profit | 33.96B | 32.26B | 29.25B | 26.32B | 22.99B | 19.47B |
| EBITDA | 16.77B | 13.15B | 11.14B | 9.96B | 5.64B | 5.05B |
| Net Income | 9.66B | 7.46B | 6.20B | 4.14B | 208.00M | 1.44B |
Balance Sheet | ||||||
| Total Assets | 109.62B | 112.31B | 102.93B | 99.82B | 98.85B | 95.21B |
| Cash, Cash Equivalents and Short-Term Investments | 11.40B | 9.56B | 14.03B | 14.19B | 12.51B | 10.54B |
| Total Debt | 41.74B | 17.18B | 11.39B | 12.59B | 14.09B | 13.98B |
| Total Liabilities | 71.24B | 53.16B | 41.76B | 40.18B | 40.49B | 37.08B |
| Stockholders Equity | 38.38B | 59.14B | 61.17B | 59.65B | 58.36B | 58.13B |
Cash Flow | ||||||
| Free Cash Flow | 15.15B | 14.40B | 12.43B | 9.50B | 6.31B | 5.28B |
| Operating Cash Flow | 15.75B | 15.00B | 13.09B | 10.23B | 7.11B | 6.00B |
| Investing Cash Flow | -11.57B | -8.59B | -3.16B | -1.33B | -1.99B | -14.54B |
| Financing Cash Flow | -6.20B | -8.08B | -9.43B | -7.48B | -3.56B | 7.84B |
Salesforce Technical Analysis
Price Trends
Market Momentum
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 231.29 is below the 20-day moving average (MA) of 237.39, below the 50-day MA of 238.75, and above the 200-day MA of 197.64, indicating a neutral trend. The MACD of 1.17 indicates Positive momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 25.06 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.
Latest Risks Added
0 New RisksSalesforce Peers Comparison
Overall Rating
- CRM82Outperform
ADBE79Outperform
FRSH79Outperform
SAP77Outperform
NOW73Outperform
HUBS58Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CRM | 82Outperform | $188.61B | 20.83 | 20.15% | 0.76% | 11.23% | 58.19% |
| ADBE | 79Outperform | $97.39B | 13.94 | 62.88% | ― | 12.03% | 11.41% |
| FRSH | 79Outperform | $3.84B | 22.42 | 19.50% | ― | 15.57% | ― |
| SAP | 77Outperform | $275.46B | 29.80 | 17.84% | 1.25% | 13.45% | 22.30% |
| NOW | 73Outperform | $109.11B | 75.08 | 11.49% | ― | 21.82% | -16.58% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| HUBS | 58Neutral | $11.71B | 82.99 | 7.75% | ― | 21.08% | ― |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CRM | Salesforce.com | 229.17 | -29.97 | -11.57% | |
| ADBE | Adobe Systems Incorporated | 250.23 | -87.24 | -25.85% | |
| SAP | SAP SE (US) | 235.02 | -25.66 | -9.85% | |
| NOW | ServiceNow Inc | 105.12 | -77.65 | -42.48% | |
| HUBS | HubSpot, Inc. | 234.87 | -259.71 | -52.51% | |
| FRSH | Freshworks, Inc. Class A | 14.72 | 3.54 | 31.66% |
Salesforce Corporate Events
Salesforce to Acquire Braze, Expanding AI Marketing Capabilities
PositiveOn October 20, 2026, Salesforce announced a definitive agreement to acquire customer engagement specialist Braze for approximately $5.66 billion in enterprise value, with Braze Class A shareholders to receive $47.50 in cash per share. The deal, expec...
Salesforce Investor Day Highlights AI-Driven Growth Vision
PositiveOn September 16, 2026, Salesforce hosted an Investor Day at Dreamforce and posted an accompanying presentation detailing its financial performance, FY27 guidance and long-term growth framework, underscoring accelerating profitable growth from $26.5 b...
Salesforce Adopts New Executive Deferred Compensation Plan
NeutralOn September 2, 2026, Salesforce’s board-level Compensation Committee approved a new Executive Deferred Compensation Plan allowing executive officers and certain employees to defer significant portions of their base salary and annual performanc...
Salesforce Announces Leadership Transition in Engineering and Success
NeutralOn August 5, 2026, Salesforce announced that Srini Tallapragada will step down as President and Chief Engineering and Customer Success Officer, effective August 6, 2026, and transition to the role of Special Advisor to the Chief Executive Officer thr...
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.
Date of analysis: Oct 20, 2026