Upside case
Bull case
$420+131.8%
CRM would need investors to value it at roughly 36x earnings — about 20x more generous than today's 15x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 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
74 bullish · 2 bearish · 97 covering CRM
Strong Buy
2
Buy
72
Hold
21
Sell
2
Strong Sell
0
Consensus Target
$287
+58.4% vs today
Scenario Range
$44 – $420
Model bear to bull value window
Coverage
97
Published analyst ratings
Valuation Context
15.4x
Forward P/E · Market cap $174.3B
CRM price targets
Three scenarios for where CRM stock could go
Current
~$181
Confidence
82 / 100
Updated
May 1, 2026
Where we are now
Current · $181
Bear
$44
Base
$277
Bull
$420
Market caseClosest to today
Base case
$277+53.1%
At 24x 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
$44-75.9%
If investor confidence fades or macro conditions deteriorate, a 12x multiple contraction could push CRM down roughly 76% from where it trades now.
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
$174.3B
Revenue TTM
$41.5B
Net Income TTM
$7.5B
Net Margin
18.0%
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
+6.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$2.58/$2.55
Revenue
$9.8B/$9.8B
Q3 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
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $2.58/$2.55 | +1.2% | $9.8B/$9.8B | +0.7% |
| 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% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$43.1B
+3.7% YoY
FY2
$48.5B
+12.6% YoY
EPS Outlook
FY1
$10.86
+36.8% YoY
FY2
$11.94
+10.0% YoY
Trailing FCF (TTM)$14.4B
FCF Margin: 34.7%
Next Earnings
May 27, 2026
Expected EPS
$3.12
Expected Revenue
$11.1B
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 2025
Total disclosed revenue $37.9B
Product Mix
Latest annual revenue by segment or product family
Service Cloud
23.9%
+9.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
66.3%
+8.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Service Cloud is the largest disclosed segment at 23.9% of FY 2025 revenue, up 9.8% YoY.
Americas is the largest reported region at 66.3%, up 8.0% 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
Significantly Undervalued
Fair value est. $540 — implies +193.6% from today's price.
Upside to Fair Value
193.6%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
CRM
23.2x
vs
S&P 500
25.2x
8% discount
vs Technology Trailing P/E
CRM
23.2x
vs
Technology
27.5x
15% discount
vs CRM 5Y Avg P/E
Today
23.2x
vs
5Y Average
76.3x
70% discount
Forward PE
15.4x
S&P 500
19.1x
-19%
Technology
21.7x
-29%
5Y Avg
—
—
Trailing PE
23.2x
S&P 500
25.2x
-8%
Technology
27.5x
-15%
5Y Avg
76.3x
-70%
PEG Ratio
1.90x
S&P 500
1.75x
+9%
Technology
1.47x
+30%
5Y Avg
—
—
EV/EBITDA
19.5x
S&P 500
15.3x
+28%
Technology
17.4x
+12%
5Y Avg
37.1x
-48%
Price/FCF
12.1x
S&P 500
21.3x
-43%
Technology
19.8x
-39%
5Y Avg
27.9x
-57%
Price/Sales
4.2x
S&P 500
3.1x
+34%
Technology
2.4x
+74%
5Y Avg
7.1x
-41%
Dividend Yield
0.92%
S&P 500
1.88%
-51%
Technology
1.18%
-22%
5Y Avg
0.62%
+47%
| Metric | CRM | S&P 500 | Technology | 5Y Avg CRM |
|---|---|---|---|---|
| Forward PE | 15.4x | 19.1x-19% | 21.7x-29% | — |
| Trailing PE | 23.2x | 25.2x | 27.5x-15% | 76.3x-70% |
| PEG Ratio | 1.90x | 1.75x | 1.47x+30% | — |
| EV/EBITDA | 19.5x | 15.3x+28% | 17.4x+12% | 37.1x-48% |
| Price/FCF | 12.1x | 21.3x-43% | 19.8x-39% | 27.9x-57% |
| Price/Sales | 4.2x | 3.1x+34% | 2.4x+74% | 7.1x-41% |
| Dividend Yield | 0.92% | 1.88% | 1.18% | 0.62% |
CRM trades above S&P 500 benchmarks on 2 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
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 $14.4B in free cash flow at a 34.7% margin — 10.9% ROIC signals a durable competitive advantage · returns 8.1% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$41.5B
Revenue Growth
TTM vs prior year
+9.6%
Gross Margin
Gross profit as a share of revenue
77.7%
Operating Margin
Operating income divided by revenue
21.5%
Net Margin
Net income divided by revenue
18.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.93
Free Cash Flow (TTM)
Cash generation after capex
$14.4B
FCF Margin
FCF as share of revenue — the primary cash quality signal
34.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
10.9%
ROA
Return on assets, trailing twelve months
6.6%
Cash & Equivalents
Liquid assets on the balance sheet
$7.3B
Net Cash
Cash exceeds total debt — no net leverage
$590M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
12.6%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
8.1%
Dividend
0.9%
Buyback
7.2%
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
956M
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 April 11, 2026
High Risk
Slowing Revenue Growth
Salesforce’s revenue growth is projected to decelerate to 6‑8% for fiscal year 2026, a sharp decline from its historical double‑digit expansion. The slowdown reflects cautious enterprise spending amid economic uncertainty, leading customers to scrutinize budgets and extend purchase cycles.
High Risk
Execution Risk in AI & M&A
Significant AI investments are expected to yield financial returns only by fiscal year 2027, creating a long‑term earnings lag. The recent $8 billion acquisition of Informatica adds integration complexities that could generate near‑term financial headwinds and dilute short‑term profitability.
High Risk
Data Security & Compliance
Salesforce environments face vulnerabilities from coding errors, improper metadata management, and inadequate backups, exposing the company to hefty fines and reputational damage. Compliance with GDPR, CCPA, and HIPAA is critical, especially for financial institutions that handle sensitive data.
Medium
Intensifying Competition
Microsoft Dynamics 365, Oracle, and SAP are rapidly advancing AI‑driven CRM capabilities, leveraging broader ecosystems and deeper enterprise ties. This competitive pressure threatens Salesforce’s market share and could erode pricing power.
Medium
Valuation Concerns
The stock trades at a premium relative to broader market multiples, implying that investors expect strong future growth. If growth fails to materialize, a valuation reset could trigger a sharp decline in share price.
Lower
Shareholder Dilution
Persistent high stock‑based compensation leads to ongoing shareholder dilution, potentially compressing earnings per share and reducing return on equity for existing shareholders.
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 April 11, 2026
Deep Integration & Switching Costs
Salesforce’s platform is deeply embedded in customer workflows, creating high switching costs that reinforce its competitive moat. The vast partner ecosystem and AppExchange further lock in users, ensuring long‑term retention and recurring revenue.
AI & Data Unification
Strategic investments in AI and data unification through products like Data Cloud and Agentforce are expected to spark new upgrade cycles. These tools deepen customer penetration by delivering unified data insights and automated agent support.
Agentic Work Units Pivot
Salesforce is shifting from selling human licenses to selling the execution of digital labor via Agentic Work Units (AWUs). This model could re‑accelerate growth by monetizing automated processes across the customer base.
Dynamics 365 ROI Upside
Implementing Dynamics 365 can deliver significant returns, with reports indicating gains of up to $8.71 for every $1 spent. Bundling with Microsoft’s broader cloud ecosystem amplifies these benefits and drives adoption.
Cloud‑First Transformation & Backlog Growth
SAP’s transition to a cloud‑first model has spurred strong growth in cloud revenue and a rapidly increasing cloud backlog, providing visibility for future growth. Oracle’s OCI is also experiencing rapid AI‑driven growth, with a large RPO backlog tied to AI infrastructure and cloud commitments.
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
$181.19
52W Range Position
13%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$163.52
+10.8% from the low
52-Week High
$296.05
-38.8% from the high
1 Month
-2.08%
3 Month
-5.31%
YTD
-28.6%
1 Year
-33.7%
3Y CAGR
-2.9%
5Y CAGR
-3.6%
10Y CAGR
+9.3%
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
15.4x
vs 23.6x median
-35% below peer median
Revenue Growth
+3.7%
vs +8.8% median
-58% below peer median
Net Margin
18.0%
vs 19.1% median
-6% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
CRM CRM Salesforce, Inc. | $174.3B | 15.4x | +3.7% | 18.0% | Buy | +58.4% |
SAP SAP SAP SE | $201.7B | 23.6x | +8.8% | 19.1% | Buy | +126.2% |
ORC ORCL Oracle Corporation | $557.7B | 25.9x | +6.4% | 25.3% | Buy | +32.6% |
MSF MSFT Microsoft Corporation | $3.07T | 24.9x | +7.0% | 39.3% | Buy | +33.3% |
NOW NOW ServiceNow, Inc. | $92.3B | 21.4x | +18.0% | 12.6% | Buy | +70.2% |
WDA WDAY Workday, Inc. | $32.3B | 11.7x | +12.7% | 7.3% | Buy | +61.4% |
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 (7.2% buyback yield), with a modest 0.92% dividend — combining for 8.1% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
8.1%
Dividend + buyback return per year
Buyback Yield
7.2%
Dividend Yield
0.92%
Payout Ratio
21.3%
How CRM Splits Its Return
Buyback 7.2%
Dividend 0.92%Buybacks 7.2%
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
70M
Approx. Share Reduction
7.3%
Shares Outstanding
Current diluted share count from the screening snapshot
956M
At 7.3%/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 | $0.44 | — | 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, 74 rate it Buy or Strong Buy, 21 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $287, implying +58.4% from the current price of $181. The bear case scenario is $44 and the bull case is $420.
02What is the CRM stock price target for 2026?
The Wall Street consensus price target for CRM is $287 based on 97 analyst estimates. The high-end target is $400 (+120.8% from today), and the low-end target is $235 (+29.7%). The base case model target is $277.
03Is Salesforce, Inc. (CRM) stock overvalued in 2026?
CRM trades at 15.4x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. 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) Slowing Revenue Growth — Salesforce’s revenue growth is projected to decelerate to 6‑8% for fiscal year 2026, a sharp decline from its historical double‑digit expansion. (2) Execution Risk in AI & M&A — Significant AI investments are expected to yield financial returns only by fiscal year 2027, creating a long‑term earnings lag. (3) Data Security & Compliance — Salesforce environments face vulnerabilities from coding errors, improper metadata management, and inadequate backups, exposing the company to hefty fines and reputational damage. 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 $43.1B (+3.7% year-over-year) and EPS of $10.86 (+36.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $48.5B in revenue.
06When does Salesforce, Inc. (CRM) report its next earnings?
Salesforce, Inc. is expected to report its next earnings on approximately 2026-05-27. Consensus expects EPS of $3.12 and revenue of $11.1B. Over recent quarters, CRM has beaten EPS estimates 92% of the time.
07How much free cash flow does Salesforce, Inc. generate?
Salesforce, Inc. (CRM) generated $14.4B in free cash flow over the trailing twelve months — a free cash flow margin of 34.7%. CRM returns capital to shareholders through dividends (0.9% yield) and share repurchases ($12.6B TTM).