Salesforce, Inc. (CRM) AI Stock Analysis
CRM AI stock analysis summary
AI ResearchSalesforce, Inc. (CRM) is a global provider of customer relationship management software and enterprise cloud applications. In FY2026, the company generated $41.52B in revenue with an operating margin of 21.5% and free cash flow of $14.40B. The stock closed at $240.70, trading at a trailing P/E of 22.0x and a forward P/E of 14.0x.
- Market cap
- $198.10B
- Revenue (TTM)
- $43.94B
- P/E
- 22.0x fwd 14.0x
- 1Y return
- -1.3% S&P 500 16.8%
- Avg. target
- $285.68 18.7% vs last close
Bull case
- Free cash flow expanded from $5.28B in FY2022 to $14.40B in FY2026, supporting $12.60B in share buybacks during FY2026.
- Operating margin rose from 7.0% in FY2022 to 21.5% in FY2026, alongside trailing twelve months quarterly earnings growth of 118.9%.
- The stock's forward P/E of 14.0x and EV/EBITDA of 13.6x trade at a discount to the median of its S&P 500 Technology peers at 20.9x and 19.9x, respectively.
Bear case
- Salesforce carries $41.74B in total debt and net debt of $30.34B, with a current ratio of 0.84 as of July 31, 2026.
- Consensus estimates project next fiscal year EPS to fall 4.4% to $16.02, down from $16.76 estimated for the current fiscal year.
- Over the past five years, the stock returned -15.9%, substantially trailing the 83.0% five-year return of the S&P 500 (SPY).
What Salesforce does
Salesforce, Inc. provides customer relationship management technology worldwide through its Customer 360 platform. The platform connects companies and their customers, supporting data storage, lead management, sales forecasting, analytics, and customer interactions including quotes, contracts, and invoices. Salesforce also offers custom business application development tools, an online learning platform, Slack for communication and collaboration, marketing automation, and commerce solutions across mobile, web, social, and physical environments. Additionally, its portfolio features the Tableau enterprise analytics platform, MuleSoft integration solutions, and professional services tailored to various industries such as healthcare, financial services, and manufacturing.
Growth and profitability
Salesforce's revenue grew from $26.49B in FY2022 to $41.52B in FY2026, reflecting a 5-year revenue CAGR of 14.3%. Annual revenue growth was 9.6% in FY2026, following 8.7% in FY2025 and 11.2% in FY2024. Over this period, gross margin expanded from 73.5% in FY2022 to 77.7% in FY2026, while operating margin rose from 7.0% to 21.5%. Net income reached $7.46B in FY2026, up from $1.44B in FY2022 and $208.0M in FY2023. For the trailing twelve months ended July 31, 2026, revenue totaled $43.94B with quarterly revenue growth of 10.8% and quarterly earnings growth of 118.9% year-over-year.
Balance sheet and cash flow
As of July 31, 2026, Salesforce held $11.40B in cash and short-term investments against $41.74B in total debt, resulting in net debt of $30.34B. Total assets stood at $109.62B with shareholders' equity of $38.38B, leading to a debt-to-equity ratio of 1.09 and a current ratio of 0.84. In FY2026, operating cash flow reached $15.00B, funding capital expenditures of $594.0M, share buybacks of $12.60B, and dividends paid of $1.59B. Over five years, the share count declined 18.0%.
Valuation and performance
At a closing price of $240.70, Salesforce trades at a trailing P/E of 22.0x and a forward P/E of 14.0x, below the median of its S&P 500 Technology peers of 31.5x trailing and 20.9x forward. Its enterprise value to EBITDA ratio is 13.6x compared to the peer median of 19.9x, and its price-to-sales multiple is 4.5x versus 6.3x for peers. Over the past year, CRM stock fell 1.3% compared to a 16.8% return for the S&P 500 (SPY). Over five years, the stock dropped 15.9% while the benchmark gained 83.0%.
CRM dividend
Salesforce pays a quarterly dividend with an annual forward payout of $1.76 per share, yielding 0.73% based on its recent close. The payout ratio stands at 10.9%. The company has paid dividends for 3 consecutive years, with the last ex-dividend date on September 17, 2026.
What analysts expect
Among covering analysts, 34 rate Salesforce a Strong Buy, 6 rate it a Buy, 15 rate it a Hold, and 1 rates it a Sell. The mean price target is $285.68, representing an 18.7% premium over the last close of $240.70. For the current fiscal year ending January 31, 2027, consensus estimates project revenue of $46.30B and EPS of $16.76, an increase of 33.8%. Salesforce beat EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for December 2, 2026.
Key risks and what to watch
- Annual revenue growth moderated to 9.6% in FY2026 and 8.7% in FY2025, down from 24.7% in FY2022.
- Total debt of $41.74B exceeds cash and short-term investments of $11.40B, resulting in a debt-to-equity ratio of 1.09.
- Quarterly revenue growth of 10.8% for the latest quarter trails the S&P 500 Technology peer median of 20.5%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CRM AI stock analysis
This page is an AI-written research summary of Salesforce, Inc. (CRM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CRM income statement, CRM balance sheet, CRM key metrics, CRM analyst forecast, CRM chart. See the CRM stock overview for the latest quote and news.
CRM AI stock analysis FAQ
What is Salesforce's dividend yield and payout?
Salesforce offers an annual forward dividend of $1.76 per share, which equates to a 0.73% dividend yield. The payout ratio is 10.9%, and the company has paid dividends for 3 consecutive years.
How does Salesforce's valuation compare to its peers?
Salesforce trades at a forward P/E of 14.0x and an EV/EBITDA of 13.6x. Both ratios are below the median of its S&P 500 Technology peers, which stand at 20.9x and 19.9x, respectively.
How much debt does Salesforce have?
As of July 31, 2026, Salesforce held $41.74B in total debt against $11.40B in cash and short-term investments, yielding net debt of $30.34B. Its current ratio is 0.84 and debt-to-equity is 1.09.
When does Salesforce report earnings next?
Salesforce's next earnings date is December 2, 2026. The company has beaten EPS expectations in all of its last 4 quarters.