Revenue growth has re-accelerated to 13.3% in 2027Q1, while disciplined cost management has successfully expanded operating margins from 17.5% in 2024Q4 to 21.8%.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 |
|---|
| Sales/Revenue | 42.83B | 41.52B | 37.9B | 34.86B | 31.35B | 26.49B | 21.25B | 17.1B | 13.28B | 10.48B | 8.39B | 6.67B | 5.37B | 4.07B | 3.05B | 2.27B | 1.66B | 1.31B | 1.08B | 748.7M | 497.1M | 309.86M | 176.38M | 96.02M | 50.99M |
| Revenue Growth % | 10.98% | 9.58% | 8.72% | 11.18% | 18.35% | 24.66% | 24.3% | 28.73% | 26.74% | 24.88% | 25.87% | 24.07% | 32% | 33.47% | 34.58% | 36.77% | 26.93% | 21.25% | 43.82% | 50.61% | 60.43% | 75.68% | 83.68% | 88.31% | - |
| Cost of Goods Sold | 9.57B | 9.27B | 8.64B | 8.54B | 8.36B | 7.03B | 5.44B | 4.24B | 3.45B | 2.77B | 2.23B | 1.65B | 1.29B | 968.43M | 683.58M | 488.89M | 323.81M | 257.93M | 220.47M | 171.59M | 118.89M | 69.13M | 33.45M | 17.27M | 10.36M |
| COGS % of Revenue | - | 22.32% | 22.81% | 24.5% | 26.66% | 26.52% | 25.59% | 24.77% | 25.98% | 26.46% | 26.62% | 24.82% | 23.99% | 23.79% | 22.41% | 21.57% | 19.54% | 19.76% | 20.48% | 22.92% | 23.92% | 22.31% | 18.97% | 17.99% | 20.32% |
| Gross Profit | 33.25B | 32.26B | 29.25B | 26.32B | 22.99B | 19.47B | 15.81B | 12.86B | 9.83B | 7.77B | 6.2B | 5.01B | 4.08B | 3.1B | 2.37B | 1.78B | 1.33B | 1.05B | 856.3M | 577.11M | 378.21M | 240.73M | 142.92M | 78.75M | 40.63M |
| Gross Margin % | 77.64% | 77.68% | 77.19% | 75.5% | 73.33% | 73.48% | 74.41% | 75.23% | 74.02% | 74.11% | 73.92% | 75.18% | 76.01% | 76.21% | 77.59% | 78.43% | 80.46% | 80.24% | 79.52% | 77.08% | 76.08% | 77.69% | 81.03% | 82.01% | 79.68% |
| Gross Profit Growth % | - | 10.27% | 11.16% | 14.46% | 18.11% | 23.09% | 22.94% | 30.84% | 26.57% | 25.21% | 23.75% | 22.73% | 31.64% | 31.1% | 33.13% | 33.32% | 27.27% | 22.35% | 48.38% | 52.59% | 57.11% | 68.44% | 81.49% | 93.83% | - |
| Operating Expenses | 23.85B | 23.34B | 22.05B | 21.3B | 21.96B | 18.92B | 15.36B | 12.57B | 9.3B | 7.31B | 5.99B | 4.9B | 4.23B | 3.39B | 2.48B | 1.81B | 1.24B | 932.39M | 792.56M | 556.8M | 381.81M | 220.63M | 136.4M | 75.03M | 51.13M |
| OpEx % of Revenue | - | 56.2% | 58.18% | 61.12% | 70.05% | 71.41% | 72.27% | 73.49% | 69.99% | 69.78% | 71.32% | 73.46% | 78.72% | 83.24% | 81.22% | 79.98% | 74.58% | 71.42% | 73.61% | 74.37% | 76.81% | 71.2% | 77.34% | 78.14% | 100.27% |
| Selling, General & Admin | 17.73B | 17.34B | 16.09B | 15.41B | 16.08B | 14.45B | 11.76B | 9.63B | 7.41B | 5.76B | 4.78B | 3.95B | 3.44B | 2.76B | 2.05B | 1.52B | 1.05B | 800.49M | 693.03M | 492.99M | 337.19M | 197.58M | 126.58M | 71.52M | 46.48M |
| SG&A % of Revenue | - | 41.77% | 42.47% | 44.21% | 51.29% | 54.56% | 55.34% | 56.35% | 55.79% | 54.96% | 56.92% | 59.27% | 63.96% | 67.92% | 67.14% | 66.95% | 63.24% | 61.31% | 64.36% | 65.85% | 67.83% | 63.77% | 71.77% | 74.48% | 91.15% |
| Research & Development | 6.16B | 5.99B | 5.49B | 4.91B | 5.05B | 4.46B | 3.6B | 2.77B | 1.89B | 1.55B | 1.21B | 946.3M | 792.92M | 623.8M | 429.48M | 295.35M | 187.89M | 131.9M | 99.53M | 63.81M | 44.61M | 23.33M | 9.82M | 6.96M | 4.65M |
| R&D % of Revenue | - | 14.43% | 14.5% | 14.07% | 16.12% | 16.85% | 16.93% | 16.18% | 14.2% | 14.82% | 14.39% | 14.19% | 14.76% | 15.32% | 14.08% | 13.03% | 11.34% | 10.1% | 9.24% | 8.52% | 8.97% | 7.53% | 5.57% | 7.25% | 9.12% |
| Other Operating Expenses | 0 | 0 | 461M | 988M | 828M | 0 | 0 | 166M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -285K | 0 | -3.44M | 0 |
| Operating Income | 9.4B | 8.92B | 7.21B | 5.01B | 1.03B | 548M | 455M | 297M | 535M | 454M | 218M | 114.92M | -145.63M | -286.07M | -110.71M | -35.09M | 97.5M | 115.27M | 63.74M | 20.31M | -3.6M | 20.1M | 6.52M | 3.72M | -10.5M |
| Operating Margin % | 21.94% | 21.47% | 19.01% | 14.38% | 3.29% | 2.07% | 2.14% | 1.74% | 4.03% | 4.33% | 2.6% | 1.72% | -2.71% | -7.03% | -3.63% | -1.55% | 5.88% | 8.83% | 5.92% | 2.71% | -0.72% | 6.49% | 3.7% | 3.87% | -20.59% |
| Operating Income Growth % | - | 23.76% | 43.78% | 386.5% | 87.96% | 20.44% | 53.2% | -44.49% | 17.84% | 108.26% | 89.69% | 178.91% | 49.09% | -158.4% | -215.55% | -135.99% | -15.42% | 80.84% | 213.86% | 664.45% | -117.9% | 208.31% | 75.36% | 135.41% | - |
| EBITDA | 12.19B | 12.55B | 10.68B | 8.23B | 4.82B | 3.85B | 3.3B | 2.43B | 1.52B | 1.24B | 850M | 640.67M | 302.66M | 83.35M | 106.08M | 122.2M | 173.24M | 168.45M | 99.71M | 86.72M | 32.29M | 40.73M | 25.27M | 14.91M | -4.95M |
| EBITDA Margin % | 28.45% | 30.22% | 28.19% | 23.62% | 15.36% | 14.52% | 15.53% | 14.22% | 11.42% | 11.81% | 10.13% | 9.61% | 5.63% | 2.05% | 3.48% | 5.39% | 10.45% | 12.9% | 9.26% | 11.58% | 6.5% | 13.15% | 14.32% | 15.53% | -9.71% |
| EBITDA Growth % | 12.01% | 17.47% | 29.75% | 70.95% | 25.22% | 16.51% | 35.73% | 60.32% | 22.54% | 45.65% | 32.67% | 111.68% | 263.13% | -21.43% | -13.19% | -29.46% | 2.85% | 68.93% | 14.98% | 168.6% | -20.74% | 61.23% | 69.47% | 401.11% | - |
| D&A (Non-Cash Add-back) | 2.79B | 3.63B | 3.48B | 3.22B | 3.79B | 3.3B | 2.85B | 2.13B | 982M | 784M | 632M | 525.75M | 448.3M | 369.42M | 216.79M | 157.29M | 75.75M | 53.18M | 35.97M | 66.41M | 35.88M | 20.63M | 18.75M | 11.19M | 5.55M |
| EBIT | 9.62B | 9.52B | 7.67B | 6B | 1.86B | 548M | 455M | 463M | 535M | 454M | 268M | 136.76M | -139.85M | -280.72M | -96.85M | -16.27M | 129.21M | 144.38M | 85.7M | 46.26M | -3.6M | 20.1M | 9.19M | 3.72M | -10.5M |
| Net Interest Income | -162M | 0 | -272M | 0 | -287M | -220M | -126M | -14M | -93M | -50M | -67.09M | -58.34M | -63.11M | -67.7M | -13.04M | 3.75M | 3.36M | 19.22M | 24.19M | 24.49M | 14.78M | 7.66M | 2.62M | 0 | 0 |
| Interest Income | 289M | 0 | 0 | 0 | 0 | 0 | 0 | 117M | 61M | 37M | 21.9M | 14.15M | 10.13M | 9.51M | 17.9M | 20.79M | 28.27M | 21.22M | 24.19M | 24.54M | 14.98M | 7.73M | 2.66M | 0 | 0 |
| Interest Expense | 451M | 0 | 272M | 0 | 287M | 220M | 126M | 131M | 154M | 87M | 88.99M | 72.48M | 73.24M | 77.21M | 30.95M | 17.05M | 24.91M | 2M | 0 | 46K | 193K | 69K | 37K | 0 | 0 |
| Other Income/Expense | 869M | 603M | 233M | -61M | -370M | 984M | 2.11B | 409M | 448M | -34M | -39M | -50.64M | -67.45M | -71.86M | -17.08M | 1.77M | 6.8M | 27.11M | 21.85M | 25.9M | 16.09M | 8.1M | 2.63M | 521K | 492K |
| Pretax Income | 10.27B | 9.52B | 7.44B | 4.95B | 660M | 1.53B | 2.56B | 706M | 983M | 420M | 179M | 64.28M | -213.09M | -357.94M | -127.79M | -33.32M | 104.3M | 142.38M | 85.59M | 46.21M | 12.5M | 28.2M | 9.15M | 4.24M | -10.01M |
| Pretax Margin % | 23.97% | 22.93% | 19.63% | 14.2% | 2.11% | 5.78% | 12.05% | 4.13% | 7.4% | 4.01% | 2.13% | 0.96% | -3.97% | -8.79% | -4.19% | -1.47% | 6.29% | 10.91% | 7.95% | 6.17% | 2.51% | 9.1% | 5.19% | 4.41% | -19.63% |
| Income Tax | 2.24B | 2.06B | 1.24B | 814M | 452M | 88M | -1.51B | 580M | -127M | 60M | -144M | 111.7M | 49.6M | -125.76M | 142.65M | -21.75M | 34.6M | 57.69M | 37.56M | 23.39M | 9.79M | -1.31M | 1.22M | 541K | 0 |
| Effective Tax Rate % | 21.86% | 21.67% | 16.68% | 16.44% | 68.48% | 5.74% | -59% | 82.15% | -12.92% | 14.29% | -80.45% | 173.78% | -23.28% | 35.13% | -111.63% | 65.27% | 33.18% | 40.52% | 43.88% | 50.6% | 78.39% | -4.65% | 13.3% | 12.76% | 0% |
| Net Income | 8.02B | 7.46B | 6.2B | 4.14B | 208M | 1.44B | 4.07B | 126M | 1.11B | 360M | 323M | -47.43M | -262.69M | -232.18M | -270.44M | -11.57M | 64.47M | 80.72M | 43.43M | 18.36M | 481K | 28.47M | 7.35M | 3.51M | -9.72M |
| Net Margin % | 18.73% | 17.96% | 16.35% | 11.87% | 0.66% | 5.45% | 19.16% | 0.74% | 8.36% | 3.44% | 3.85% | -0.71% | -4.89% | -5.7% | -8.87% | -0.51% | 3.89% | 6.18% | 4.03% | 2.45% | 0.1% | 9.19% | 4.17% | 3.66% | -19.05% |
| Net Income Growth % | 29.3% | 20.33% | 49.83% | 1888.46% | -85.6% | -64.54% | 3131.75% | -88.65% | 208.33% | 11.46% | 781.06% | 81.95% | -13.14% | 14.15% | -2237.06% | -117.95% | -20.13% | 85.87% | 136.59% | 3716.22% | -98.31% | 287.61% | 109.05% | 136.17% | - |
| Net Income (Continuing) | 8.02B | 7.46B | 6.2B | 4.14B | 208M | 1.44B | 4.07B | 126M | 1.11B | 360M | 323M | -47.43M | -262.69M | -232.18M | -270.44M | -11.57M | 69.7M | 84.69M | 48.03M | 18.36M | 481K | 29.51M | 7.35M | 3.51M | -9.72M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12.86M | 10.7M | 8.94M | 4.63M | 2.41M | 1.38M | 775K | 410K |
| EPS (Diluted) | 9.21 | 7.80 | 6.36 | 4.20 | 0.21 | 1.48 | 4.38 | 0.15 | 1.43 | 0.17 | 0.26 | -0.07 | -0.42 | -0.39 | -0.48 | -0.02 | 0.12 | 0.16 | 0.09 | 0.04 | 0.00 | 0.06 | 0.02 | 0.01 | -0.09 |
| EPS Growth % | 35.05% | 22.64% | 51.43% | 1900% | -85.81% | -66.21% | 2820% | -89.51% | 741.18% | -34.62% | 471.43% | 83.33% | -7.69% | 18.75% | -2033.33% | -118.75% | -25% | 82.86% | 133.33% | - | -98.33% | 242.86% | 75% | 110.81% | - |
| EPS (Basic) | - | 7.85 | 6.44 | 4.25 | 0.21 | 1.51 | 4.48 | 0.15 | 1.48 | 0.18 | 0.26 | -0.07 | -0.42 | -0.39 | -0.48 | -0.02 | 0.13 | 0.16 | 0.09 | 0.04 | 0.00 | 0.07 | 0.03 | 0.03 | -0.09 |
| Diluted Shares Outstanding | 871M | 956M | 974M | 984M | 997M | 974M | 930M | 850M | 775M | 734.6M | 700.22M | 661.65M | 624.15M | 597.61M | 564.9M | 541.21M | 548.71M | 512.46M | 500.91M | 489.69M | 480.62M | 474.95M | 443.5M | 381.64M | 105.5M |
| Basic Shares Outstanding | 868M | 950M | 962M | 974M | 992M | 955M | 908M | 829M | 751M | 714.92M | 687.8M | 661.65M | 624.15M | 595.32M | 563.43M | 541.21M | 520.89M | 497.85M | 484.73M | 467.36M | 449.54M | 429.1M | 302.01M | 118.42M | 105.5M |
| Dividend Payout Ratio | - | 21.28% | 24.8% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Seat-based revenue model erosion
According to the most recent quarterly filings, Salesforce achieved a 13.3% year-over-year revenue growth rate in 2027Q1, marking a notable acceleration from the mid-single-digit growth observed in previous fiscal periods and suggesting that the company's multi-cloud adoption strategy is successfully driving incremental enterprise demand.
The recent uptick in top-line expansion appears to validate the company's pivot toward integrated platform offerings, which likely increases the difficulty for customers to churn. Investors should monitor whether this growth trajectory is sustainable or if it reflects a temporary benefit from large-scale multi-year contract renewals.
As reported in financial statements, Salesforce has consistently maintained gross margins near 77-78% over the last ten quarters, demonstrating the inherent scalability of its cloud-based delivery model despite the ongoing infrastructure costs associated with hosting complex enterprise applications on public cloud environments.
This stability in gross margins suggests that the company retains significant pricing power within its core CRM and service segments. However, the persistence of these margins warrants further investigation into whether future AI-driven product integrations will require higher compute costs that could eventually pressure these levels.
Based on the provided income statement data, operating margins have expanded from 17.5% in 2024Q4 to 21.8% in 2027Q1, indicating that management's focus on headcount rationalization and operational efficiency is successfully allowing operating income to outpace the growth of top-line revenue.
The improvement in operating leverage appears to be a direct result of the company's transition from a growth-at-all-costs mindset to a disciplined profitability framework. This trend suggests that the business is becoming more efficient at converting incremental revenue into bottom-line earnings, though investors should watch for potential fatigue in these cost-cutting measures.
Analysis of the reported figures reveals that stock-based compensation remains a significant expense, reaching $1.1 billion in 2026Q4, which continues to create a meaningful wedge between GAAP net income and the underlying cash-generative capacity of the business for shareholders.
While GAAP earnings have shown impressive growth, the reliance on equity-based incentives suggests that true economic profitability may be lower than headline figures imply. Investors should carefully adjust for these non-cash charges to determine if the company's earnings quality is truly improving or merely being supported by aggressive share-based compensation practices.
Quick answers to the most common questions about buying CRM stock.
For fiscal year 2026, Salesforce, Inc. (CRM) reported total revenue of $41.52B. This represents a 81335.9% increase compared to $51.0M in 2003.
Salesforce, Inc. (CRM) is profitable, generating $7.46B in net income for the fiscal year ending 2026 with a net profit margin of 18.0%.
Salesforce, Inc. (CRM) reported an operating income of $8.92B, resulting in an operating profit margin of 21.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Salesforce, Inc. (CRM) generated $32.26B in gross profit for the year, representing a gross profit margin of 77.7%. This demonstrates the company's core pricing power and production efficiency.