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Salesforce
(NYSE:CRM)
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Rating:84Outperform
Price Target:
$295.00
▲(43.42% Upside)
Action:Reiterated
Date:08/28/26
The score is driven primarily by strong financial performance (high margins and durable, high-conversion free cash flow) and a constructive earnings update (raised revenue guidance with accelerating AI/Agentforce and cRPO indicators). Technicals add support via an established uptrend, while valuation is supportive but not especially cheap and the dividend is modest.
Positive Factors
Exceptional Cash Generation
High free-cash-flow conversion indicates strong earnings quality and gives Salesforce substantial funding for product investment, acquisitions, shareholder returns, and strategic expansion without relying heavily on external capital.
Negative Factors
Material Revenue Growth Deceleration
The sharp slowdown from earlier growth rates weakens Salesforce’s overall growth profile and raises the importance of successful AI monetization, cross-selling, and new customer acquisition to sustain meaningful expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Cash Generation
High free-cash-flow conversion indicates strong earnings quality and gives Salesforce substantial funding for product investment, acquisitions, shareholder returns, and strategic expansion without relying heavily on external capital.
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
$211.45B
Dividend Yield0.8%
Average Volume (3M)15.18M
Price to Earnings (P/E)24.0
Beta (1Y)1.12
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. Volume19,800,413
30 Day Avg. Volume15,179,394
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
$269.14Price Target Upside30.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering39
EPS Forecast (FY)16.5
Revenue Forecast (FY)$46.27B
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 makes money primarily by selling subscriptions to its cloud software (software-as-a-service). The core revenue stream is recurring subscription revenue from customers who license Salesforce products on a per-user and/or usage-based basi...
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
189.47
Positive
183.07
Positive
199.95
Positive
Market Momentum
20.39
Negative
81.89
Negative
91.48
Negative
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 217.59, above the 50-day MA of 189.47, and above the 200-day MA of 199.95, indicating a bullish trend. The MACD of 20.39 indicates Negative momentum. The RSI at 81.89 is Negative, neither overbought nor oversold. The STOCH value of 91.48 is Negative, 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $211.45B | 24.04 | 20.15% | 1.30% | 11.23% | 58.19% | |
83 Outperform | $246.38B | 27.09 | 17.98% | 1.84% | 14.13% | 31.10% | |
82 Outperform | $3.44B | 20.35 | 19.50% | ― | 15.57% | ― | |
79 Outperform | $111.22B | 16.33 | 62.39% | ― | 11.49% | 11.45% | |
79 Outperform | $141.37B | 90.43 | 13.77% | ― | 22.19% | 0.19% | |
75 Outperform | $12.24B | 90.22 | 7.75% | ― | 21.08% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CRM
Salesforce
264.43
15.78
6.34%
ADBE
Adobe
285.75
-63.22
-18.12%
SAP
SAP SE
217.03
-48.63
-18.31%
NOW
ServiceNow
145.59
-37.17
-20.34%
HUBS
HubSpot
255.12
-232.41
-47.67%
FRSH
Freshworks
13.36
0.52
4.05%
Salesforce Corporate Events
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 ...
Executive/Board Changes
Salesforce Appoints Veteran Auditor as Chief Accounting Officer
Positive
Jun 2, 2026
Salesforce has appointed veteran auditor Guy Wanger, 64, as its Chief Accounting Officer and principal accounting officer, effective June 15, 2026, following a May 27, 2026 decision by the board. Wanger brings nearly four decades of experience at ...
Business Operations and StrategyShareholder Meetings
Salesforce shareholders back board, governance and equity plans
Positive
Jun 1, 2026
At its 2026 Annual Meeting of Stockholders held on May 28, 2026, Salesforce investors re-elected the full slate of directors, ratified Ernst Young LLP as independent auditor for the fiscal year ending January 31, 2027, and approved on an advisory...
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.