US · NYSE · CRM
Salesforce (CRM) stock analysis: valuation and financials
Technology · Computer Software: Prepackaged Software
$242.45 +0.7% Price as of Oct 19, 2026
Sticky 77.7%-gross-margin subscription franchise growing 9.6% with $14.4B FCF; $27.9B net debt manageable; 15x EV/FCF implies only 1.8% FCF growth — risk-reward skewed upside.
- Market cap
- $199.5B
- P/E
- 20.7x
- EV/Sales
- 5.2x
- FCF yield
- 7.6%
- 52-week range
- $150.12 – $266.23
- Next earnings
- Dec 2, 2026
Research as of Oct 20, 2026
Business quality scorecard
- Growth54
- Profitability64
- Cash flow83
- Balance sheet34
- Capital allocation72
- Innovation54
- Valuation89
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Businesses worldwide pay subscription and support fees (about 95% of revenue) for Agentforce Sales, Service, Platform/Slack and related products; Service is the largest at 23.6%, and the single reported segment earns a 20.1% FY2026 operating margin.
Financials by year
| FY2022Feb 2021–Jan 2022 | FY2023Feb 2022–Jan 2023 | FY2024Feb 2023–Jan 2024 | FY2025Feb 2024–Jan 2025 | FY2026Feb 2025–Jan 2026 | |
|---|---|---|---|---|---|
| Revenue | $26.5B | $31.4B | $34.9B | $37.9B | $41.5B |
| Revenue growth | +24.7% | +18.3% | +11.2% | +8.7% | +9.6% |
| Gross margin | 73.5% | 73.3% | 75.5% | 77.2% | 77.7% |
| Operating margin | 2.1% | 3.3% | 14.4% | 19.0% | 20.1% |
| Net income | $1.4B | $208.0M | $4.1B | $6.2B | $7.5B |
| Free cash flow | $5.3B | $6.3B | $9.5B | $12.4B | $14.4B |
| FCF margin | 19.9% | 20.1% | 27.2% | 32.8% | 34.7% |
Amounts in USD · What is free cash flow?
Margins Gross margin 77.7% in FY2026 vs 77.2% FY2025, TTM 77.3% (+0.5pp), but easing to 76.7% by Q2 FY2027. Operating margin 20.1% vs 19.0%, TTM 19.9% (+1.1pp). Revenue growth outran cost of revenue; restructuring trimmed opex.
- Cash flow HealthyOperating cash flow $15.0B in FY2026 versus net income $7.46B, a 2.15x cash conversion; TTM operating cash flow $15.75B on $43.9B revenue.
- Debt ManageableNet debt $27.9B; total debt $39.3B TTM versus $14.4B at FY2026 year-end, after the $25B accelerated share repurchase was financed with borrowings; net debt/EBITDA 2.20x.
Balance sheet Leverage · Moderate
- Cash & short-term investments
- $11.4B
- Total debt
- $39.3B
- Net debt
- $27.9B
- Net debt / EBITDA
- 2.2x
- Interest coverage
- 8.9x
- Current ratio
- 0.8x
As of Jul 31, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management AdequateExecution: operating margin rose from 2.1% in FY2021 to 20.1% in FY2026; FCF margin reached 34.7% and FCF $14.4B.
- Credibility HighRevenue landed in or above the guided range in each of the last four quarters: Q3 FY2026 $10.26B vs $10.24B-$10.29B, Q4 FY2026 $11.20B vs $11.13B-$11.23B, Q1 FY2027 $11.13B vs $11.03B-$11.08B, Q2 FY2027 $11.35B at the top of $11.27B-$11.35B.
Of 10 guided figures checked: 4 beat, 5 in range, 1 missed.
Valuation range
Implied value per share · Price when researched: $242.45
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.