📊 CRM Key Takeaways
Is Salesforce, Inc. (CRM) a Good Investment?
Salesforce demonstrates exceptional software business fundamentals with 76.9% gross margins, 21.1% operating margins, and outstanding free cash flow generation (58.9% FCF margin), coupled with accelerating EPS growth of 22.6% YoY and sustained 9.6% revenue growth. However, a current ratio of 0.79x and elevated leverage (D/E 1.15x) with $39.3B long-term debt warrant careful monitoring despite strong 7.2x interest coverage and $6.6B annual free cash flow.
Salesforce shows strong fundamental quality, combining high gross margins, expanding earnings, and exceptional free cash flow generation. Revenue growth is moderate rather than hypergrowth, but profit growth is outpacing sales, indicating improving operating efficiency and disciplined cost structure. The balance sheet is solid with manageable leverage, though below-1.0 liquidity ratios and dependence on sustained enterprise software spending remain worth monitoring.
Salesforce, Inc. Key Strengths (CRM)
- Best-in-class free cash flow conversion at 58.9% FCF margin with $6.6B annual FCF generation
- Exceptional profitability with 76.9% gross margin and 21.1% operating margin typical of high-quality SaaS businesses
- Strong earnings momentum with 22.6% EPS growth YoY demonstrating improved operational leverage
- Solid interest coverage ratio of 7.2x indicating adequate debt servicing capacity despite leverage
- Sustained revenue growth of 9.6% YoY at $11.1B scale shows market durability in mature software segment
- High profitability profile with 77.7% gross margin, 20.1% operating margin, and 18.0% net margin
- Excellent cash generation, with $15.00B operating cash flow and $14.40B free cash flow supporting flexibility
- Conservative leverage and strong debt service capacity, reflected in 0.24x debt-to-equity and 25.7x interest coverage
CRM Stock Risks: Salesforce, Inc. Investment Risks
- Current ratio of 0.79x indicates current liabilities exceed current assets, presenting near-term liquidity management risk
- Elevated debt burden of $39.3B represents 1.15x debt-to-equity ratio with concentration of long-term obligations
- Low return metrics (ROE 6.2%, ROA 2.0%) suggest suboptimal capital deployment efficiency relative to asset base
- Free cash flow adequacy dependent on maintaining operational efficiency as gross margins and capital discipline are critical
- Potential debt refinancing risk if capital markets tighten or operating cash flow decelerates
- Revenue growth of 9.6% suggests a more mature growth profile and could limit upside if margin expansion slows
- Current and quick ratios of 0.76x indicate tighter short-term liquidity than many software peers
- Large asset base is generating only moderate returns, with ROE at 12.6% and ROA at 6.6%, leaving execution pressure to sustain improvement
Key Metrics to Watch
- Current ratio trend—critical to monitor if it remains below 1.0 or shows improvement toward 1.2x+
- Free cash flow sustainability—ensure 55%+ FCF margin maintained and operating cash flow remains above $6B annually
- Debt reduction trajectory—track D/E ratio movement and long-term debt levels relative to EBITDA coverage
- Operating margin progression—verify 20%+ operating margins are maintained during growth investments
- Working capital dynamics—monitor accounts receivable, deferred revenue trends affecting current assets and liabilities
- Revenue growth versus operating income growth
- Free cash flow margin and current ratio
Salesforce, Inc. (CRM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 58.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CRM Profit Margin, ROE & Profitability Analysis
CRM vs Technology Sector: How Salesforce, Inc. Compares
How Salesforce, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Salesforce, Inc. Stock Overvalued? CRM Valuation Analysis 2026
Based on fundamental analysis, Salesforce, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Salesforce, Inc. Balance Sheet: CRM Debt, Cash & Liquidity
CRM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Salesforce, Inc.'s revenue has grown significantly by 95% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.21 reflects profitable operations.
CRM Revenue Growth, EPS Growth & YoY Performance
CRM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $9.8B | $1.5B | $1.59 |
| Q3 2026 | $9.4B | $1.4B | $1.58 |
| Q2 2026 | $9.3B | $1.4B | $1.47 |
| Q1 2026 | $9.1B | $1.5B | $1.56 |
| Q3 2025 | $8.7B | $199.0M | $1.25 |
| Q2 2025 | $8.6B | $199.0M | $1.28 |
| Q1 2025 | $8.2B | $199.0M | $0.20 |
| Q3 2024 | $7.8B | $28.0M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Salesforce, Inc. Dividends, Buybacks & Capital Allocation
CRM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Salesforce, Inc. (CIK: 0001108524)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CRM
What is the AI rating for CRM?
Salesforce, Inc. (CRM) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRM's key strengths?
Claude: Best-in-class free cash flow conversion at 58.9% FCF margin with $6.6B annual FCF generation. Exceptional profitability with 76.9% gross margin and 21.1% operating margin typical of high-quality SaaS businesses. ChatGPT: High profitability profile with 77.7% gross margin, 20.1% operating margin, and 18.0% net margin. Excellent cash generation, with $15.00B operating cash flow and $14.40B free cash flow supporting flexibility.
What are the risks of investing in CRM?
Claude: Current ratio of 0.79x indicates current liabilities exceed current assets, presenting near-term liquidity management risk. Elevated debt burden of $39.3B represents 1.15x debt-to-equity ratio with concentration of long-term obligations. ChatGPT: Revenue growth of 9.6% suggests a more mature growth profile and could limit upside if margin expansion slows. Current and quick ratios of 0.76x indicate tighter short-term liquidity than many software peers.
What is CRM's revenue and growth?
Salesforce, Inc. reported revenue of $11.1B.
Does CRM pay dividends?
Salesforce, Inc. pays dividends, with $365.0M distributed to shareholders in the trailing twelve months.
Where can I find CRM SEC filings?
Official SEC filings for Salesforce, Inc. (CIK: 0001108524) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRM's EPS?
Salesforce, Inc. has a diluted EPS of $2.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CRM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Salesforce, Inc. has a A grade with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CRM stock overvalued or undervalued?
Valuation metrics for CRM: ROE of 6.2% (sector avg: 22%), net margin of 18.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is CRM's AI grade for 2026?
Our dual AI analysis gives Salesforce, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CRM's free cash flow?
Salesforce, Inc.'s operating cash flow is $6.7B, with capital expenditures of $145.0M. FCF margin is 58.9%.
How does CRM compare to other Technology stocks?
Vs Technology sector averages: Net margin 18.9% (avg: 18%), ROE 6.2% (avg: 22%), current ratio 0.79 (avg: 2.5).