Salesforce (CRM)
Information Technology · $195B market cap · SEC CIK 0001108524
fundamentals score out of 100
Next reports on Dec 1, 2026, after the close, with analysts expecting $3.47 in earnings per share.
The case for CRM
- Generated $14.4B of free cash flow in FY2025, 35% of revenue.
- 22% of revenue drops through to net profit.
- Free cash flow of 7.4% of its market value a year: a lot of cash for the price.
- Revenue growing 11.2% year over year.
- Earnings per share up 59.3%.
- A PEG of 0.34: a P/E of 20.2× is low for EPS growing 59%.
The case against
- Current liabilities exceed current assets (ratio 0.84).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 71 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 72 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 67 |
| Momentumhow the price has behaved lately | 69 |
| Stabilityhow violently it moves, what it owes and what it pays you | 65 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 20.2× |
|---|---|
| Price / book | 3.93× |
| Price / sales | 4.4× |
| Revenue growth (YoY) | +11.2% |
| EPS growth (YoY) | +59.3% |
| Gross margin | 77% |
| Operating margin | 19% |
| Net margin | 22% |
| Return on equity | 20% |
| Debt / equity | 1.02× |
| Current ratio | 0.84 |
| Dividend yield | 0.78% |
| Beta | 1.24 |
| 52-week range | $146.32 – $269.11 |
| Position in that range | 71% of the way up |
| 3-month return | +55.8% |
| 1-year return | -4.3% |
Five years of financials, as filed
Pulled from Salesforce's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $41.5B | $37.9B | $34.9B | $31.4B | $26.5B |
| Gross profit | $32.3B | $29.3B | $26.3B | $23.0B | $19.5B |
| Operating income | $8.3B | $7.2B | $5.0B | $1.0B | $548M |
| Net income | $7.5B | $6.2B | $4.1B | $208M | $1.4B |
| Operating cash flow | $15.0B | $13.1B | $10.2B | $7.1B | $6.0B |
| Capital expenditure | $594M | $658M | $736M | $798M | $717M |
| Total assets | $112B | $103B | $99.8B | $98.8B | $95.2B |
| Total liabilities | $53.2B | $41.8B | $40.2B | $40.5B | $37.1B |
| Shareholder equity | $59.1B | $61.2B | $59.6B | $58.4B | $58.1B |
| Cash | $7.3B | $8.8B | $8.5B | $7.0B | $5.5B |
| Long-term debt | $10.4B | $8.4B | $8.4B | $9.4B | $10.6B |
| Free cash flow | $14.4B | $12.4B | $9.5B | $6.3B | $5.3B |
| Gross margin | 77.7% | 77.2% | 75.5% | 73.3% | 73.5% |
| Operating margin | 20.1% | 19.0% | 14.4% | 3.3% | 2.1% |
| Net margin | 18.0% | 16.4% | 11.9% | 0.7% | 5.5% |
| Diluted shares | 956M | 974M | 984M | 997M | 974M |
Share count is essentially flat over 4 years.
What Salesforce says it does
Overview Salesforce, Inc. ("Salesforce," the "Company," "we" or "our") is a global leader in customer relationship management ("CRM") technology, helping organizations of any size become agentic enterprises. Founded in 1999, we bring humans, agents, applications, and data together on a trusted, unified platform to unlock growth and innovation. Our artificial intelligence ("AI") powered Agentforce 360 Platform unites our offerings — spanning sales, service, marketing, commerce, collaboration, data management, integration, analytics, IT service, industry verticals and more — on a single, intelligent platform for trusted enterprise execution. We unify and harmonize across systems, applications and devices to create a complete view of customers. With this single source of customer truth powering agents, teams can be more responsive, productive and efficient and deliver AI-powered, personalized and automated experiences across every…
Risk factors CRM lists in its 10-K
- Risks Related to Owning Our Common Stock
- Defects or disruptions in our services could diminish demand for our services and subject us to substantial liability
- Periodic changes to our sales organization can be disruptive and may reduce our rate of growth
- Sales to customers outside the United States expose us to risks inherent in international operations
- We may lose key members of our management team or development and operations personnel, and may be unable to attract and retain employees we need to support our operations and growth
- Any failure in the delivery of high-quality professional and technical support services related to our online applications may adversely affect our relationships with our customers and our financial results
- The markets in which we participate are intensely competitive, and if we do not compete effectively, our operating results could be harmed
- Our efforts to expand our service offerings and to develop and integrate our existing services in order to keep pace with technological developments may not succeed and may reduce our revenue growth rate and harm our business
- Our continued success depends on our ability to maintain and enhance our brands
- We are subject to risks associated with our strategic investments, including partial or complete loss of invested capital. Significant changes in the fair value of this portfolio could negatively impact our financial results
- Social, ethical, and regulatory issues, including the development, deployment, use or capabilities of AI in our offerings, may result in reputational harm, legal liability and increased compliance costs
- The evolving landscape related to environmental, social and governance matters may expose us to risks that could adversely affect our reputation and performance
- Industry-specific regulations and other requirements and standards are evolving and industry-specific laws, regulations, interpretive positions or standards could harm our business
- We have been and may in the future be sued by third parties for various claims, including alleged infringement of proprietary rights