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Salesforce
(NYSE:CRM)
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Rating:82Outperform
Price Target:
$291.00
▲(41.48% Upside)
Action:Reiterated
Date:09/17/26
The score is driven primarily by strong financial quality (high and improving profitability plus very strong free-cash-flow generation) and a constructive earnings-call backdrop (raised guidance and accelerating AI/Agentforce and cRPO indicators). Technicals also support the rating with a strong uptrend. Valuation is a moderate offset given a mid-20s P/E and low dividend yield.
Positive Factors
Durable Cash Generation
Strong free-cash-flow conversion indicates that reported earnings are translating into substantial cash, supporting reinvestment, acquisitions, shareholder returns, and resilience. Continued cash-flow growth also gives Salesforce flexibility to fund its platform and AI strategy without relying heavily on external financing.
Negative Factors
Revenue Growth Deceleration
The sharp slowdown in top-line growth weakens Salesforce’s growth-quality profile and raises the burden on AI products, cross-selling, and acquisitions to restore stronger expansion. Slower underlying growth can also limit operating leverage and make future performance more dependent on successful product transitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable Cash Generation
Strong free-cash-flow conversion indicates that reported earnings are translating into substantial cash, supporting reinvestment, acquisitions, shareholder returns, and resilience. Continued cash-flow growth also gives Salesforce flexibility to fund its platform and AI strategy without relying heavily on external financing.
Read all positive factors
Salesforce Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks 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.
Breaks 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.
Data provided by:
The Fly
The FlySalesforce (CRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$185.43B
Dividend Yield0.77%
Average Volume (3M)14.86M
Price to Earnings (P/E)20.8
Beta (1Y)1.13
Revenue Growth11.23%
EPS Growth58.19%
CountryUS
Employees83,334
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)11.00
Shares Outstanding823,000,000
10 Day Avg. Volume12,623,227
30 Day Avg. Volume14,864,178
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$272.62Price Target Upside32.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering39
EPS Forecast (FY)16.75
Revenue Forecast (FY)$46.29B
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,...
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
Earnings Call Date:Aug 26, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Strong Quarterly Revenue and Subscription Performance
Q2 revenue of $11.35B, up 11% year-over-year; subscription and support revenue $10.82B, up 12% nominal (11% in constant currency), above the high end of guidance.
Negative Updates
License Revenue Headwinds and Volatility
Management noted ongoing license revenue headwinds and volatility in integration and analytics license lines, partially offsetting strength in Slack, Agentforce and Data 360.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Quarterly Revenue and Subscription Performance
Q2 revenue of $11.35B, up 11% year-over-year; subscription and support revenue $10.82B, up 12% nominal (11% in constant currency), above the high end of guidance.
Read all positive 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
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
90
Very 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 | 15.80B | 13.15B | 11.14B | 9.22B | 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
Positive
205.69
Price Trends
215.54
Positive
193.23
Positive
200.01
Positive
Market Momentum
2.94
Positive
44.16
Neutral
15.41
Positive
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 205.69 is below the 20-day moving average (MA) of 244.81, below the 50-day MA of 215.54, and above the 200-day MA of 200.01, indicating a neutral trend. The MACD of 2.94 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 15.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $245.26B | 27.18 | 17.60% | 1.39% | 14.13% | 31.10% | |
82 Outperform | $185.43B | 20.80 | 20.15% | 0.77% | 11.23% | 58.19% | |
82 Outperform | $3.28B | 19.01 | 19.50% | ― | 15.57% | ― | |
79 Outperform | $90.75B | 12.99 | 62.88% | ― | 12.03% | 11.41% | |
79 Outperform | $134.36B | 82.17 | 13.77% | ― | 22.19% | 0.19% | |
75 Outperform | $9.86B | 71.51 | 7.75% | ― | 21.08% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CRM
Salesforce
225.31
-8.40
-3.59%
ADBE
Adobe
233.17
-110.55
-32.16%
SAP
SAP SE
210.85
-55.79
-20.92%
NOW
ServiceNow
129.94
-52.55
-28.79%
HUBS
HubSpot
197.67
-242.58
-55.10%
FRSH
Freshworks
12.58
1.11
9.68%
Salesforce Corporate Events
Business Operations and StrategyFinancial Disclosures
Salesforce Investor Day Highlights AI-Driven Growth Vision
Positive
Sep 17, 2026
On 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....
Business Operations and StrategyExecutive/Board Changes
Salesforce Adopts New Executive Deferred Compensation Plan
Neutral
Sep 4, 2026
On 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 perform...
Business Operations and StrategyExecutive/Board Changes
Salesforce Announces Leadership Transition in Engineering and Success
Neutral
Aug 5, 2026
On 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 ...
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.