Download PDF

1. Company Snapshot

1.a. Company Description

Salesforce, Inc.provides customer relationship management technology that brings companies and customers together worldwide.Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers.


The company's service offerings include Sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and Service that enables companies to deliver trusted and highly personalized customer service and support at scale.Its service offerings also comprise flexible platform that enables companies of various sizes, locations, and industries to build business apps to bring them closer to their customers with drag-and-drop tools; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, a system of engagement.In addition, the company's service offerings include Marketing offering that enables companies to plan, personalize, and optimize one-to-one customer marketing journeys; and Commerce offering, which empowers brands to unify the customer experience across mobile, web, social, and store commerce points.


Further, its service offerings comprise Tableau, an end-to-end analytics solution serving various enterprise use cases; and MuleSoft, an integration offering that allows its customers to unlock data across their enterprise.The company provides its service offering for customers in financial services, healthcare and life sciences, manufacturing, and other industries.It also offers professional services; and in-person and online courses to certify its customers and partners on architecting, administering, deploying, and developing its service offerings.


The company provides its services through direct sales; and consulting firms, systems integrators, and other partners.Salesforce, Inc.was incorporated in 1999 and is headquartered in San Francisco, California.

Show Full description

1.b. Last Insights on CRM

Salesforce's recent struggles can be attributed to investor concerns regarding missed revenue projections and difficulties in AI adoption. The company's valuation has decreased, with a forward P/E of 22 and P/FCF of 17, among its lowest in five years. A significant drop in value has occurred over the last year. Worries about the business narrative have emerged due to recent declines. Despite this, retail investor sentiment has surged to a bullish 72 out of 100. Management remains positioned to deliver GAAP profitability improvements.

1.c. Company Highlights

2. Salesforce Delivers Strong Q4 Results with Revenue Growth and Margin Expansion

Salesforce reported a strong fiscal 2026 fourth quarter, with total revenue reaching $41.5 billion, up 10% year-over-year, and 9% in constant currency. The company's subscription and support revenue grew 10% year-over-year in nominal and constant currency. Earnings per share (EPS) came in at $3.81, beating analyst estimates of $3.05. The company's CRPO (Current Remaining Performance Obligations) rose to $35.1 billion, up 16% year-over-year and 13% in constant currency.

Publication Date: Feb -27

📋 Highlights
  • Revenue Growth:: FY26 revenue reached $41.5 billion (up 10% YoY, 9% constant currency), with CRPO of $35.1 billion (up 16% YoY, 13% constant currency).
  • RPO Milestone:: Total RPO hit $72 billion (up 14% YoY), with $63 billion FY30 revenue target (11% CAGR from FY26-FY30).
  • Share Repurchases:: $50 billion repurchase authorization, returning 99% of FY26 free cash flow ($14 billion) to shareholders.
  • Agentforce Expansion:: ARR for Agentforce and Data 360 (including Informatica) grew to $2.9 billion (+200% YoY), with 29,000 deals closed in 15 months.
  • AI Work Units:: Delivered 771 million Agentic Work Units (AWUs) in Q4, driven by SlackBot and 19 trillion tokens consumed annually.

Revenue Growth and Customer Wins

The company's revenue growth was driven by strong customer wins, with wins over $1 million up 26% year-over-year and wins over $10 million up 33% year-over-year. The company's Agentforce and Data 360 ARR (Annual Recurring Revenue) reached $2.9 billion, up 200% year-over-year. Salesforce is seeing significant demand for its Agentforce product, with 29,000 deals closed in the first 15 months, up 50% quarter-over-quarter.

Investment in AI and Innovation

Salesforce is investing heavily in AI and innovation, with a focus on developing its Agentic Enterprise platform. The company is using large language models like Anthropic, OpenAI, and Llama to drive its AI capabilities. Salesforce is also partnering with AI companies like Anthropic, with whom it has invested $330 million. The company's AI-powered agents, such as Agentforce, are driving significant value for customers, with 771 million Agentic Work Units (AWUs) delivered in Q4.

Valuation and Outlook

Salesforce's valuation metrics indicate a premium valuation, with a P/E Ratio of 25.01 and an EV/EBITDA of 16.57. The company's ROE (Return on Equity) is 12.37%, indicating a strong return on shareholder equity. Analysts estimate next year's revenue growth at 10.9%, which is in line with the company's historical growth rate. With its strong revenue growth, margin expansion, and investment in AI and innovation, Salesforce is well-positioned for future growth.

Share Repurchase and Capital Allocation

Salesforce is returning value to shareholders through share repurchases, with a new authorization of $50 billion. The company has returned over 99% of its free cash flow to shareholders through buybacks and dividends in fiscal 2026. Marc Benioff emphasized the importance of using cash effectively, focusing on four key areas: dividends, buybacks, acquisitions, and debt. The company's strong cash flow generation and disciplined capital allocation are expected to drive long-term shareholder value.

3. NewsRoom

Card image cap

3 Bargain Stocks the Market Is Mispricing After the Recent Sell-Off

Mar -20

Source: fool.com

Card image cap

Salesforce issues $25 billion in debt to buy back stock. Should we be concerned?

Mar -20

Source: cnbc.com

Card image cap

The Artificial Intelligence (AI) Stock That Could Redefine Its Industry by the End of 2026

Mar -20

Source: fool.com

Card image cap

Salesforce, Adobe Stocks Face 2008-Style Collapse In 'SaaSpocalypse'

Mar -19

Source: benzinga.com

Card image cap

Prediction: This Artificial Intelligence (AI) Stock Will Be the Surprise Winner of the Software Sell-Off in 2026

Mar -19

Source: fool.com

Card image cap

Salesforce's Agentic AI Push: Can It Reaccelerate CRM's Sales Growth?

Mar -18

Source: zacks.com

Card image cap

CHAOS Economics Is No Longer a Theory

Mar -17

Source: investorplace.com

Card image cap

3 Artificial Intelligence (AI) Software Stocks I'd Buy Today if I Were Starting From Scratch

Mar -16

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (20.40%)

6. Segments

Multiple Enterprise Cloud Computing Market

Expected Growth: 20.4%

Salesforce’s cloud computing solutions for enterprises drive digital transformation, fueling growth. Key drivers include increasing adoption of cloud-based Customer Relationship Management (CRM) capabilities and expanding artificial intelligence (AI) integrations, enabling businesses to enhance customer experiences and gain data-driven insights.

7. Detailed Products

Sales Cloud

A customer relationship management (CRM) platform that enables businesses to manage sales, marketing, and customer service activities.

Service Cloud

A customer service platform that enables businesses to provide personalized, omnichannel customer service and support.

Marketing Cloud

A digital marketing platform that enables businesses to manage customer journeys, personalize customer experiences, and optimize marketing campaigns.

Commerce Cloud

An ecommerce platform that enables businesses to create seamless, omnichannel shopping experiences.

Community Cloud

A platform that enables businesses to create online communities, portals, and forums to engage with customers, partners, and employees.

Analytics Cloud

A cloud-based analytics platform that enables businesses to explore, prepare, and visualize data to gain insights and make data-driven decisions.

IoT Cloud

An Internet of Things (IoT) platform that enables businesses to connect, process, and analyze IoT data to gain insights and automate business processes.

Einstein Analytics

A cloud-based analytics platform that enables businesses to explore, prepare, and visualize data to gain insights and make data-driven decisions.

MuleSoft

An integration platform that enables businesses to connect applications, data, and devices to create a unified, omnichannel customer experience.

8. Salesforce, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Salesforce, Inc. has a low threat of substitutes due to its unique cloud-based customer relationship management (CRM) software, which is highly customizable and integrated with other business applications.

Bargaining Power Of Customers

Salesforce, Inc. has a medium bargaining power of customers due to the presence of large enterprises and small businesses, which can negotiate prices and terms, but the company's strong brand and customer loyalty mitigate this power.

Bargaining Power Of Suppliers

Salesforce, Inc. has a low bargaining power of suppliers due to its dominant position in the CRM market, allowing it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

Salesforce, Inc. has a low threat of new entrants due to the high barriers to entry, including the need for significant investments in research and development, marketing, and sales.

Intensity Of Rivalry

Salesforce, Inc. operates in a highly competitive CRM market, with intense rivalry among established players, including Microsoft, Oracle, and SAP, which drives innovation and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.75%
Debt Cost 3.95%
Equity Weight 85.25%
Equity Cost 10.43%
WACC 9.47%
Leverage 17.30%

11. Quality Control: Salesforce, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Intuit

A-Score: 5.6/10

Value: 1.0

Growth: 8.1

Quality: 8.6

Yield: 1.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Salesforce

A-Score: 5.0/10

Value: 2.3

Growth: 8.9

Quality: 8.3

Yield: 1.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
AppLovin

A-Score: 4.8/10

Value: 0.0

Growth: 9.7

Quality: 8.4

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Cadence Design Systems

A-Score: 4.6/10

Value: 0.0

Growth: 7.2

Quality: 8.5

Yield: 0.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
ServiceNow

A-Score: 4.4/10

Value: 0.3

Growth: 9.0

Quality: 7.8

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
FICO

A-Score: 4.2/10

Value: 2.0

Growth: 8.3

Quality: 7.4

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

195.38$

Current Price

195.38$

Potential

-0.00%

Expected Cash-Flows