Upside case
Bull case
$351+131.1%
CRM would need investors to value it at roughly 30x earnings — about 17x more generous than today's 13x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
Salesforce, Inc. (CRM) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
97
analysts
75 bullish · 2 bearish · 97 covering CRM
Strong Buy
2
Buy
73
Hold
20
Sell
2
Strong Sell
0
Consensus Target
$266
+75.1% vs today
Scenario Range
$168 – $351
Model bear to bull value window
Coverage
97
Published analyst ratings
Valuation Context
12.9x
Forward P/E · Market cap $124.3B
CRM price targets
Three scenarios for where CRM stock could go
Current
~$152
Confidence
69 / 100
Updated
Jun 18, 2026
Where we are now
Current · $152
Bear
$168
Base
$266
Bull
$351
Market caseClosest to today
Base case
$266+75.4%
At 23x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$168+10.5%
The bear case assumes sentiment or fundamentals disappoint enough to push CRM down roughly 10% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Salesforce, Inc.
CRM · NYSETechnologySoftware - ApplicationJanuary year-end
Salesforce is a cloud-based customer relationship management (CRM) software company that helps businesses manage sales, service, marketing, and commerce operations. It generates revenue primarily through subscription fees for its SaaS platform—with sales cloud (~30%), service cloud (~25%), and platform/other (~45%) being its main segments. Its competitive moat lies in its massive ecosystem of integrated applications, enterprise data architecture, and high switching costs for customers deeply embedded in its platform.
Market Cap
$124.3B
Revenue TTM
$42.8B
Net Income TTM
$8.0B
Net Margin
18.7%
CRM Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+8.4%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.91/$2.78
Revenue
$10.2B/$10.1B
Q4 2025
EPS
$3.25/$2.86
Revenue
$10.3B/$10.3B
Q1 2026
EPS
$3.81/$3.05
Revenue
$11.2B/$11.2B
Q2 2026
EPS
$3.88/$3.13
Revenue
$11.1B/$11.1B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.91/$2.78 | +4.7% | $10.2B/$10.1B | +0.9% |
| Q4 2025 | $3.25/$2.86 | +13.6% | $10.3B/$10.3B | -0.1% |
| Q1 2026 | $3.81/$3.05 | +24.9% | $11.2B/$11.2B | +0.1% |
| Q2 2026 | $3.88/$3.13 | +24.0% | $11.1B/$11.1B | +0.7% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$46.8B
+9.2% YoY
FY2
$49.6B
+6.1% YoY
EPS Outlook
FY1
$11.31
+22.8% YoY
FY2
$12.52
+10.7% YoY
Trailing FCF (TTM)$14.7B
FCF Margin: 34.2%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
CRM beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
CRM Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2026
Total disclosed revenue $41.5B
Product Mix
Latest annual revenue by segment or product family
Service Cloud
23.6%
+8.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
65.5%
+8.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Service Cloud is the largest disclosed segment at 23.6% of FY 2026 revenue, up 8.4% YoY.
Americas is the largest reported region at 65.5%, up 8.2% YoY.
CRM Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $271 — implies +78.7% from today's price.
Upside to Fair Value
78.7%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
CRM
19.5x
vs
S&P 500
24.4x
20% discount
vs Technology Trailing P/E
CRM
19.5x
vs
Technology
29.0x
33% discount
vs CRM 5Y Avg P/E
Today
19.5x
vs
5Y Average
76.3x
74% discount
Forward PE
12.9x
S&P 500
18.8x
-31%
Technology
22.3x
-42%
5Y Avg
—
—
Trailing PE
19.5x
S&P 500
24.4x
-20%
Technology
29.0x
-33%
5Y Avg
76.3x
-74%
PEG Ratio
1.59x
S&P 500
1.66x
-4%
Technology
1.51x
+6%
5Y Avg
—
—
EV/EBITDA
10.7x
S&P 500
15.2x
-30%
Technology
16.6x
-36%
5Y Avg
36.0x
-70%
Price/FCF
8.6x
S&P 500
20.7x
-58%
Technology
19.2x
-55%
5Y Avg
27.9x
-69%
Price/Sales
3.0x
S&P 500
3.1x
-3%
Technology
2.4x
+23%
5Y Avg
7.1x
-58%
Dividend Yield
1.09%
S&P 500
1.91%
-43%
Technology
1.11%
-1%
5Y Avg
0.62%
+76%
| Metric | CRM | S&P 500 | Technology | 5Y Avg CRM |
|---|---|---|---|---|
| Forward PE | 12.9x | 18.8x-31% | 22.3x-42% | — |
| Trailing PE | 19.5x | 24.4x-20% | 29.0x-33% | 76.3x-74% |
| PEG Ratio | 1.59x | 1.66x | 1.51x | — |
| EV/EBITDA | 10.7x | 15.2x-30% | 16.6x-36% | 36.0x-70% |
| Price/FCF | 8.6x | 20.7x-58% | 19.2x-55% | 27.9x-69% |
| Price/Sales | 3.0x | 3.1x | 2.4x+23% | 7.1x-58% |
| Dividend Yield | 1.09% | 1.91% | 1.11% | 0.62% |
CRM trades above S&P 500 benchmarks on 0 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolCRM Financial Health
Verdict
Strong
CRM generates $14.7B in free cash flow at a 34.2% margin — 10.1% ROIC signals a durable competitive advantage · returns 11.2% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$42.8B
Revenue Growth
TTM vs prior year
+11.0%
Gross Margin
Gross profit as a share of revenue
77.6%
Operating Margin
Operating income divided by revenue
21.9%
Net Margin
Net income divided by revenue
18.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$9.21
Free Cash Flow (TTM)
Cash generation after capex
$14.7B
FCF Margin
FCF as share of revenue — the primary cash quality signal
34.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
10.1%
ROA
Return on assets, trailing twelve months
7.8%
Cash & Equivalents
Liquid assets on the balance sheet
$7.3B
Net Debt
Total debt minus cash
$9.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
0.7× FCF
~0.7 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
14.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
11.2%
Dividend
1.1%
Buyback
10.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$12.6B
Dividend / Share
Annualized trailing dividend per share
$1.66
Payout Ratio
Share of earnings distributed as dividends
21.3%
Shares Outstanding
Declining as buybacks retire shares
819M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageCRM Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 17, 2026
High Risk
Competitive Threat
Microsoft Copilot for Dynamics 365 poses a significant competitive risk due to deep integration with Microsoft's productivity stack, offering lower incremental costs for enterprises already using Microsoft products.
High Risk
Financial Leverage
High debt-to-equity ratio (1.24) and elevated short interest (4.5-day cover ratio) amplify downside risk if revenue softens or interest rates rise.
Medium
AI Structural Concerns
Bank of America highlights three structural AI concerns, contributing to an Underperform rating and near 52-week lows, though consensus disagrees.
Medium
M&A Integration Risk
Recent acquisitions, including the $3.6B Fin deal, pose integration risks that could impact investor confidence post-selloff.
Lower
Market Saturation
As the #1 AI CRM platform, Salesforce faces challenges in further penetrating a mature market, despite its unified applications and trusted AI.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why CRM Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 17, 2026
AI-powered CRM leadership
Salesforce is the #1 AI CRM platform, leveraging agentic AI and unified data to connect companies and customers across applications.
Subscription model resilience
The company demonstrates resilience to macro volatility through its stable subscription-based revenue model and improving margins.
Undervalued cash flow growth
Salesforce's free cash flow growth assumptions are undervalued, presenting upside potential despite recent stock depreciation.
Product innovation bundling
The launch of Salesforce Foundations in 2024 bundles connected functionality across Sales Cloud and Service Cloud, enhancing cross-departmental integration.
Agentforce ARR scaling
Continued scaling of Agentforce annual recurring revenue (ARR) and potential H2 guidance raise could drive stock rerating toward $240-$260.
Wide economic moat
Institutional analysis confirms Salesforce's wide moat, with top holder Vanguard Group maintaining a 9.2% stake as of 2026-Q2.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
CRM Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$151.78
52W Range Position
2%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$149.80
+1.3% from the low
52-Week High
$276.80
-45.2% from the high
1 Month
-15.43%
3 Month
-21.90%
YTD
-40.2%
1 Year
-41.5%
3Y CAGR
-11.2%
5Y CAGR
-9.0%
10Y CAGR
+6.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
CRM vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
12.9x
vs 22.6x median
-43% below peer median
Revenue Growth
+9.2%
vs +12.6% median
-27% below peer median
Net Margin
18.7%
vs 19.1% median
-2% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
CRM CRM Salesforce, Inc. | $124.3B | 12.9x | +9.2% | 18.7% | Buy | +75.1% |
SAP SAP SAP SE | $180.9B | 21.2x | +9.1% | 19.1% | Buy | +55.1% |
ORC ORCL Oracle Corporation | $530.1B | 22.9x | +15.9% | 25.4% | Buy | +37.5% |
MSF MSFT Microsoft Corporation | $2.82T | 22.6x | +8.8% | 39.3% | Buy | +45.5% |
NOW NOW ServiceNow, Inc. | $98.5B | 22.9x | +16.9% | 12.6% | Buy | +58.1% |
WDA WDAY Workday, Inc. | $30.6B | 10.9x | +12.6% | 8.6% | Buy | +56.1% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
CRM Dividend and Capital Return
CRM returns capital mainly through $12.6B/year in buybacks (10.1% buyback yield), with a modest 1.09% dividend — combining for 11.2% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
11.2%
Dividend + buyback return per year
Buyback Yield
10.1%
Dividend Yield
1.09%
Payout Ratio
21.3%
How CRM Splits Its Return
Buyback 10.1%
Dividend 1.09%Buybacks 10.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.66
Growth Streak
Consecutive years of dividend increases
2Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$12.6B
Estimated Shares Retired
83M
Approx. Share Reduction
10.1%
Shares Outstanding
Current diluted share count from the screening snapshot
819M
At 10.1%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.88 | — | 6.2% | 7.0% |
| 2025 | $1.66 | +4.0% | 2.4% | 2.8% |
| 2024 | $1.60 | — | 2.8% | 2.8% |
FAQ
7 questionsCRM Investor Questions
Common questions answered from live analyst data and company financials.
01Is Salesforce, Inc. (CRM) stock a buy or sell in 2026?
Salesforce, Inc. (CRM) is rated Buy by Wall Street analysts as of 2026. Of 97 analysts covering the stock, 75 rate it Buy or Strong Buy, 20 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $266, implying +75.1% from the current price of $152. The bear case scenario is $168 and the bull case is $351.
02What is the CRM stock price target for 2026?
The Wall Street consensus price target for CRM is $266 based on 97 analyst estimates. The high-end target is $325 (+114.1% from today), and the low-end target is $215 (+41.7%). The base case model target is $266.
03Is Salesforce, Inc. (CRM) stock overvalued in 2026?
CRM trades at 12.9x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Salesforce, Inc. (CRM) stock in 2026?
The primary risks for CRM in 2026 are: (1) Competitive Threat — Microsoft Copilot for Dynamics 365 poses a significant competitive risk due to deep integration with Microsoft's productivity stack, offering lower incremental costs for enterprises already using Microsoft products. (2) Financial Leverage — High debt-to-equity ratio (1. (3) AI Structural Concerns — Bank of America highlights three structural AI concerns, contributing to an Underperform rating and near 52-week lows, though consensus disagrees. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Salesforce, Inc.'s revenue and earnings forecast?
Analyst consensus estimates CRM will report consensus revenue of $46.8B (+9.2% year-over-year) and EPS of $11.31 (+22.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $49.6B in revenue.
06When does Salesforce, Inc. (CRM) report its next earnings?
A confirmed upcoming earnings date for CRM is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Salesforce, Inc. generate?
Salesforce, Inc. (CRM) generated $14.7B in free cash flow over the trailing twelve months — a free cash flow margin of 34.2%. CRM returns capital to shareholders through dividends (1.1% yield) and share repurchases ($12.6B TTM).