KabuDo

NYSE: CRM · Application Software

Salesforce

Salesforce sells CRM software by subscription, now packaged as the Agentforce 360 Platform. It covers sales, service, marketing, commerce, Slack, data (Data 360 and Informatica), integration (MuleSoft) and analytics (Tableau). Agentforce, the platform's AI-agent layer, lets customers deploy autonomous AI agents. FY2026 (year ended January 2026) revenue was $41.5 billion (+10%), 95% of it subscription and support, and net income was $7.5 billion. Salesforce closed its roughly $9.6 billion Informatica acquisition in November 2025. In March 2026 it started a $25 billion accelerated share repurchase, funded with $25 billion of new senior notes.

Last updated

Analysis last edited: October 14, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: March 2, 2026

Built on10-K FY2026 · filed 2026-03-0210-Q (quarter ended 2026-07-31) · filed 2026-08-27

Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
14.3%

Higher than 78% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
20.1%

Higher than 56% of 311 non-financial companies

Latest fiscal year (FY2026)

ROIC minus WACC
-0.7 pts

Higher than 26% of 311 non-financial companies

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
0.5x

Higher than 28% of 304 non-financial companies

Below 0 means more cash than debt

Cash conversion
2.01x

Higher than 74% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
1 of 5

Years the dividend per share rose, of the last 5

P/E today
22.4x

Latest close 2026-11-04; trailing 12 months to 2026-07-31

Beta
1.05

Above 1 = moves more than the market

Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$233.00close on 2026-11-04

Market cap$216.46B

P/E today
22.4x

At FY2026 year-end: 27.2x

Earnings: trailing 12 months to 2026-07-31

P/B today
3.7x

At FY2026 year-end: 3.3x

Book value at FY2026 year-end

EV/EBITDA today
23.2x

At FY2026 year-end: 21.4x

EBITDA for FY2026

FCF yield today
6.7%

At FY2026 year-end: 7.3%

Free cash flow for FY2026

Dividend yield today
0.7%

Dividends per share for FY2026

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Jul 31, 2026.

  • Revenue↑ +10.8%$10.24B → $11.35B (vs. a year earlier)
  • Operating margin↓ −2.2 pts22.8% → 20.5% (vs. a year earlier)
  • Net income↑ +86.9%$1.89B → $3.53B (vs. a year earlier)
  • Diluted EPS↑ +118.9%$1.96 → $4.29 (vs. a year earlier)
  • Cash↓ −7.0%$8.94B → $8.31B (vs. previous quarter-end)
  • Long-term debt→ +0.0%$39.28B → $39.29B (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

From the earnings release of Aug 26, 2026.

Management outlook ↑ Raised

Raised FY2027 revenue guidance to $46.1B–$46.4B. Source sentence
Salesforce raises full year FY27 revenue guidance to $46.1 billion to $46.4 billion, up 11% - 12% Y/Y and 11% Y/Y in CC.

Key changes

  • Q3 revenue guidance of $11.42B–$11.5B. Source sentence
    Initiates third quarter FY27 revenue guidance of $11.42 billion to $11.5 billion, up 11% - 12% Y/Y and in CC, including slightly above 4pts Informatica contribution
  • GAAP operating margin 20.5%. Source sentence
    GAAP operating margin of 20.5% and non-GAAP operating margin of 34.1%

Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗

04

Company profileFrom SEC dataShow

Legal name
Salesforce, Inc.
Headquarters
SAN FRANCISCO, CA
Incorporated in
Delaware
Fiscal year end
01/31
Exchange & ticker
NYSE: CRM
Industry
Application Software
CIK
1108524

Workforce (as of FY2026 year-end)

  • Employees

    83,334

Source: Form 10-K (FY2026) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q3 FY2027

Quarter end: October 2026. In past years, Q3 results were released 29–33 days after quarter end (Dec 3, 2025; Dec 3, 2024; Nov 29, 2023). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around January 31.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 25–34 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q2 FY2027Jul 31, 2026Aug 26, 2026 (+26 days)Aug 27, 2026 10-Q (+27 days)
Q1 FY2027Apr 30, 2026May 27, 2026 (+27 days)May 28, 2026 10-Q (+28 days)
Q4 FY2026Jan 31, 2026Feb 25, 2026 (+25 days)Mar 2, 2026 10-K (+30 days)
Q3 FY2026Oct 31, 2025Dec 3, 2025 (+33 days)Dec 4, 2025 10-Q (+34 days)
Q2 FY2026Jul 31, 2025Sep 3, 2025 (+34 days)Sep 4, 2025 10-Q (+35 days)
Q1 FY2026Apr 30, 2025May 28, 2025 (+28 days)May 29, 2025 10-Q (+29 days)
Q4 FY2025Jan 31, 2025Feb 26, 2025 (+26 days)Mar 5, 2025 10-K (+33 days)
Q3 FY2025Oct 31, 2024Dec 3, 2024 (+33 days)Dec 4, 2024 10-Q (+34 days)
Q2 FY2025Jul 31, 2024Aug 28, 2024 (+28 days)Aug 29, 2024 10-Q (+29 days)
Q1 FY2025Apr 30, 2024May 29, 2024 (+29 days)May 30, 2024 10-Q (+30 days)
Q4 FY2024Jan 31, 2024Feb 28, 2024 (+28 days)Mar 6, 2024 10-K (+35 days)
Q3 FY2024Oct 31, 2023Nov 29, 2023 (+29 days)Nov 30, 2023 10-Q (+30 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Applications

    Agentforce Sales / Service / Marketing / Commerce

    Examples: Sales, service, marketing and commerce applications

    CRM applications with embedded AI agents.

  • Platform

    Agentforce 360 Platform, Slack

    Examples: Slack, Slackbot

    Platform and collaboration.

  • Data

    Data 360 and Informatica

    Examples: Data integration, quality, governance

    Data foundation for agents.

  • Integration and Analytics

    Integration and analytics

    Examples: MuleSoft, Tableau

    Integration and analytics products.

Offering names follow the FY2026 Form 10-K's revenue categories.

U.S., worldwide and country/regional share of flagship products/services

Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.

  • CRM software

    Worldwide

    U.S. share

    —

    Not disclosed

    Worldwide share

    #1 provider

    Company-disclosed

    The 10-K says Salesforce has become the #1 provider of CRM software globally; no percentage is given.

07

Recent strategic focusSite analysis

FY2026–FY2027 developments.

  1. $25B ASR

    In March 2026 Salesforce entered $25B of accelerated share repurchase agreements and issued $25B of senior notes due 2028–2066.

    Source: 8-Ks filed 2026-03-12, 2026-03-13, 2026-03-16

  2. Informatica

    Closed in November 2025 for about $9.6B; it contributed about $0.4B of FY2026 revenue.

    Source: Form 10-K (FY2026)

  3. Q2 FY2027

    Revenue was $11.3B (+11%) and cRPO $33.5B (+14%); FY2027 revenue guidance was raised by $200M.

    Source: Q2 FY2027 press release

  4. Executive changes

    Srini Tallapragada stepped down as President and Chief Engineering and Customer Success Officer in August 2026.

    Source: 8-K filed 2026-08-05

Capex ÷ D&A (FY2026)

0.49x

Below depreciation — investment is being pared back

formulacapital expenditures ÷ depreciation & amortization

e.g.$594M ÷ $1,200M = 0.49x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

R&D-to-revenue ratio (FY2026)

14.4%

formularesearch & development expense ÷ revenue × 100

e.g.$5,993M ÷ $41,525M × 100 = 14.4%

termsResearch & development (R&D) · Revenue (net sales)

M&A spend (6-year total)

$28.68B

Latest year: $9.27B

Cash-flow-statement spending on acquisitions, net of cash acquired

Where the money goes, over time

Unit: $M. Capex went from $710M in FY2021 to $594M in FY2026

  • Capex
  • R&D
  • M&A spend

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-02

08

Key figures at a glanceFrom SEC data

FY2021–FY2026, 6 years.

Revenue (FY2026)

$41.53B

As reported in the 10-K

Revenue CAGR (5 years)

+14.3%▲favorable

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($41,525M ÷ $21,252M) ^ (1÷5) − 1 = 14.3%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2026)

20.1%▲favorable

+17.9pt vs. 5 years ago

formulaoperating income ÷ revenue × 100

e.g.$8,331M ÷ $41,525M × 100 = 20.1%

termsOperating income · Revenue (net sales)

ROE (FY2026)

12.4%▲favorable

6-year average: 7.1%

As reported in the 10-K

P/B (FY2026 end)

3.33x

formulafiscal year-end closing price ÷ book value per share

e.g.$212.29 ÷ $63.66 = 3.33x

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2026 end)

21.4x

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

e.g.($197,217M + $14,439M − $7,327M) ÷ ($8,331M + $1,200M) = 21.4x

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ▲

    Revenue grew +14.3% a year over 5 years (strong growth)

    From $21.25B in FY2021 to $41.53B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▲

    Operating margin improved: 2.1% → 20.1%

    How much operating profit is left per $100 of revenue. It moved +17.9 points over 5 years — pricing power, cost control, and product mix all show up here.

  • ▲

    Equity ratio is 52.7% (a high level of financial stability)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ▲

    Free cash flow was positive in 6 of 6 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ―

    ROE averaged 7.1% over 6 years (latest: 12.4%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

Salesforce sells its cloud services mainly through subscriptions, typically 12–36 months, plus professional services.

How money and goods flow at Salesforce
  1. 01 what it draws on

    Inputs & resources

    • Engineering and AI investment (R&D $6.0B)
    • Sales and marketing ($14.3B)
  2. 02 what it does

    Activities

    • Running the Agentforce 360 Platform
    • Implementation and professional services
  3. 03 who it serves

    Customers

    • Businesses worldwide of all sizes
  4. 04 how money comes in

    How it earns

    • Subscription and support ($39.4B)
    • Professional services ($2.1B)

How the business makes money

  • Remaining performance obligation was $72.4B (+14%) at the end of FY2026.
  • Pricing was not a significant driver of FY2026 subscription growth; volume was.

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

Salesforce faces sanctions and export controls and serves governments under special compliance rules.

  • Trade & export rules

    Export controls and sanctions

    Governmental sanctions and export and import controls could impair its ability to compete internationally.

    Constrains the businessTouches: Customers

    Source: Form 10-K (FY2026)

  • Government as customer

    Government contracts

    Its status as a government contractor adds compliance obligations.

    Supports and constrainsTouches: Customers · How it earns

    Source: Form 10-K (FY2026)

Revenue by segment (FY2026 (Jan))

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Agentforce Service

    9,818 (24%)
  • Agentforce Sales

    9,028 (22%)
  • Agentforce 360 Platform, Slack and Other

    8,882 (21%)
  • Agentforce Integration and Analytics

    6,232 (15%)
  • Agentforce Marketing and Commerce

    5,428 (13%)
  • Professional services and other

    2,137 (5%)

Source: Form 10-K (FY2026) — MD&A, revenues by service offering Salesforce reports one segment; these are revenue lines. Subscription and support totaled $39.4B.

10

Where it earnsSite analysis

Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.

Largest market ()

Americas — 65% of revenue

Revenue by country / region ()

Unit: — bar length = revenue, (%) = share of total company revenue

  • Americas

    27,193 (65%)
  • Europe

    10,017 (24%)
  • Asia Pacific

    4,315 (10%)

Source: Form 10-K (FY2026) — Revenues by Geography Based on the region of the Salesforce contracting entity.

11

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

Subscriptions typically run 12 to 36 months, and customers have no obligation to renew.

  • Remaining performance obligation

    $72.4B total; $35.1B current

    Typical term: As of January 31, 2026

Source: Form 10-K (FY2026)

12

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Businesses worldwide across industries and sizes.

Named by the company

No customer is named as significant.

Suppliers

Data center and cloud infrastructure providers.

Named by the company

No supplier is named.

13

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

The 10-K lists competitor categories (packaged and on-premises software vendors, AI-native startups, other cloud software companies) rather than naming firms.

Competitors named in the 10-K

Salesforce's 10-K doesn't name competitors.

Peer group the company chose

Fiscal 2026 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

17 companies with market caps above $35B in similar and adjacent industries; unchanged for fiscal 2027.

Source: Proxy statement (DEF 14A, filed 2026-04-16) — Fiscal 2026 Peer Group

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

14

M&A historySite analysisShow

Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.

Salesforce has acquired companies including Slack; Informatica is its most recent large acquisition.

Cash spent on acquisitions, FY2021–FY2026: $28.68B

  1. 2025-11

    Informatica

    About $9.6B

    AI-powered enterprise cloud data management platform.

    Stated purpose (company)
    Significantly expands Salesforce's trusted data foundations.

    Source: Form 10-K (FY2026)

15

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-02

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-02

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-02

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-02

Line itemFY2021In next year’s 10-KFY2022In next year’s 10-KFY2023In next year’s 10-KFY202410-K on EDGAR ↗FY202510-K on EDGAR ↗FY202610-K on EDGAR ↗
Income statement ($M)
Revenue21,25226,49231,35234,85737,89541,525
Operating income4555481,0305,0117,2058,331
Pretax income2,5611,5326604,9507,4389,520
Net income (attributable)4,0721,4442084,1366,1977,457
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—24.7%18.3%11.2%8.7%9.6%
Operating margincalcoperating income ÷ revenue × 1002.1%2.1%3.3%14.4%19.0%20.1%
Net margincalcnet income attributable to the company ÷ revenue × 10019.2%5.5%0.7%11.9%16.4%18.0%
Balance sheet ($M)
Total assets66,30195,20998,84999,823102,928112,305
Total equity41,49358,13158,35959,64661,17359,142
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable2,67710,59610,6019,4268,43314,439
Equity ratio62.6%61.1%59.0%59.8%59.4%52.7%
ROE9.8%2.9%0.4%7.0%10.3%12.4%
Cash flow ($M)
Operating CF4,8016,0007,11110,23413,09214,996
Investing CF-3,971-14,536-1,989-1,327-3,163-8,590
Financing CF1,1947,838-3,562-7,477-9,429-8,079
Free cash flowcalccash flow from operations − capital expenditures4,0915,2836,3139,49812,43414,402
Cash and equivalents6,1955,4647,0168,4728,8487,327
Per share & other
EPS ($)4.381.480.214.206.367.80
BVPS ($)45.1558.7859.4961.4363.5963.66
Dividend per share ($)————1.601.66
Payout ratiocalcdividend per share ÷ diluted EPS × 100————25.2%21.3%
P/E (x)51.5157.2799.966.953.727.2
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)197.1191.887.144.840.021.4
P/B (x)calcfiscal year-end closing price ÷ book value per share5.003.962.824.585.373.33

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueOperating incomeNet incomeDiluted EPS
2026-07-31$11.35B+10.8%$2.33B-0.0%$3.53B+86.9%$4.29
2026-04-30$11.13B+13.3%$2.35B+20.9%$2.11B+36.7%$2.42
2026-01-31 †$11.2B+12.1%$1.87B+2.7%$1.94B+13.8%—
2025-10-31$10.26B+8.6%$2.19B+15.6%$2.09B+36.6%$2.19
2025-07-31$10.24B$2.33B$1.89B$1.96
2025-04-30$9.83B$1.94B$1.54B$1.59
2025-01-31 †$9.99B$1.82B$1.71B—
2024-10-31$9.44B$1.89B$1.53B$1.58

† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.

16

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

ROIC (FY2026)

9.4%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

e.g.$8,331M × (1 − 19%) ÷ $71,594M × 100 = 9.4%

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

WACC (this site’s estimate)

10.12%

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

e.g.Equity weight: $197.22B ÷ ($197.22B + $14.44B) = 93.2%

e.g.Debt weight: $14.44B ÷ ($197.22B + $14.44B) = 6.8%

e.g.WACC: 10.7% × 93.2% + 2.2% × (1 − 19%) × 6.8% = 10.12%

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

ROIC − WACC

-0.7pt▼caution

Falling short of the cost of capital (ROIC > WACC in only 0 of 6 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 8.3%–12.3% and ROIC − WACC runs −2.9 to +1.1 points. The sign flips inside this range, so the result depends on the assumptions. This describes the latest year and does not predict future value creation.

WACC 10.12% is this site’s estimate under the assumptions below (not a figure the company has published)

Risk-free rate
4.95% (10-year Treasury, 2026-11-03)
β
1.05 (price-derived adjusted beta)
Equity risk premium
5.5%
Cost of equity
10.73%
Cost of debt
2.24%
Tax rate
19% (effective rate, FY2024–FY2026)
Capital structure (equity : debt)
93% : 7%
→ Change assumptions and recalculate

ROIC over time, vs. WACC

Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red

  • ROIC (above WACC)
  • ROIC (below WACC)
  • WACC 10.12%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

Try different WACC assumptions

β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).

Initial β: 1.05 (price-derived adjusted beta. Raw β 1.08, R² 0.17, 130 weeks)

formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)

e.g.0.67 × 1.081 + 0.33 = 1.054

termsβ (beta)

Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.

Cost of equity10.73%

formularisk-free rate + β × equity risk premium

e.g.5.0% + 1.05 × 5.5% = 10.7%

termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)

Market value of equity$197.22B

formulafiscal year-end closing price × shares outstanding (= market cap)

termsMarket capitalization · Market value of equity

Interest-bearing debt$14.44B
Cost of debt2.24%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)93% : 7%

17

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (price on 2026-11-04)

3.6%

Perpetual FCF growth: g = r − FCF ÷ EV = 10.1% − 6.5%

Past FCF growth (FY2021–FY2026)

+28.6%

Compound annual rate, 5 years

Past revenue growth (FY2021–FY2026)

+14.3%

Compound annual rate, 5 years

Inputs (FY2026): free cash flow $14.4B (operating CF − capex); enterprise value $221.33B = market cap $216.46B (latest close, 2026-11-04) + debt $14.44B − cash and short-term investments $9.57B; r = WACC of 10.1% using this page’s default assumptions (β 1.05, risk-free 5.0%, market premium 5.5%).

Three WACC scenarios

The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$221.57B

FCF $14.4B ÷ (10.1% − 3.6%)

Theoretical ÷ actual enterprise value

1.00x

Above 1x: these assumptions value the business above the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r8.1%9.1%10.1%11.1%12.1%
0%0.80x0.72x0.64x0.59x0.54x
2%1.07x0.92x0.80x0.72x0.64x
4%1.59x1.28x1.07x0.92x0.80x
6%3.10x2.10x1.59x1.28x1.07x
8%65.07x5.92x3.10x2.10x1.59x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.

18

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 7.69x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): -7.0%

    A small share of profit rests on accounting estimates.

  • ✓

    Core-earnings share (operating income ÷ pretax income): 88%

    Most profit comes from core operations.

  • ✓

    Days sales outstanding: 134 → 116 days

    No major slowdown in collecting on sales.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-02

Profit bridge (FY2026)

Unit: $M — what moved profit from operating income to net income

  • Profit (each stage)
  • Pushed profit up
  • Pushed profit down

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-02

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days sales outstanding

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$14,996M ÷ $7,457M = 2.01x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

e.g.$8,331M ÷ $9,520M × 100 = 88%

termsOperating income · Income before income taxes (pretax income)

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

e.g.($11,945M + $14,339M) ÷ 2 ÷ $41,525M × 365 = 116 days

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

19

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
86.5%
Directors & officers (shares)
3.5%
Everyone else (est.)
10.0%

individuals and other non-13F holders

Directors & officers (voting power)
3.5%

no separate voting figure; shown as shares

Institutional-ownership rank
242 of 416

1 = most institutional; 58% of covered companies have more

Beta (adjusted)
1.05

above 1 = swings more than the market

  • 708.8M shares reported by 2,476 13F filers ÷ 819.0M shares outstanding on 2026-05-21. Option positions are excluded.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-16 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-05-21)

20

Strengths & weaknessesSite analysis

Strengths

  1. 1. Recurring revenue

    95% of revenue is subscription and support; current RPO was $35.1B (+16%).

    Evidence: Form 10-K (FY2026)

  2. 2. Cash generation

    Operating cash flow was $15.0B in FY2026 (+15%).

    Evidence: Form 10-K (FY2026)

  3. 3. AI momentum

    Agentforce and Data 360 ARR reached nearly $3.9B in Q2 FY2027 (+210%).

    Evidence: Q2 FY2027 press release

Weaknesses

  1. 1. Slowing organic growth

    FY2026 revenue grew 10%, including about $0.4B from Informatica.

    Evidence: Form 10-K (FY2026)

  2. 2. Higher leverage

    The $25B note issuance for the ASR raises debt and interest costs.

    Evidence: 8-Ks filed 2026-03-12 and 2026-03-13

21

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2026)

27.2x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2026)

0.78%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2026)

21%

Dividends per share ÷ diluted EPS

FCF yield (FY2026)

7.3%

(Operating CF − capex) ÷ market cap

  1. 1. Shareholder returns

    Quarterly dividend of $0.416, plus the $25B ASR.

    What has to hold
    Cash flow supports debt service.
    The other side
    The buyback is debt-funded.

    Evidence: Form 10-K (FY2026); 8-Ks

  2. 2. AI monetization

    Agentforce ARR exceeded $1.5B (+240%).

    What has to hold
    AI agents drive new bookings.
    The other side
    AI-native rivals.

    Evidence: Q2 FY2027 press release

The fiscal year ends January 31 (FY2026 = February 2025–January 2026). Dividends began in FY2025.

22

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2026)

Cash & short-term investments ÷ debt due within a year

2.4x

$9.57B vs. $4B

Interest coverage (operating income ÷ interest expense)

25.7x

$8.33B vs. $324M

Free cash flow ÷ dividends paid

9.1x

$14.4B vs. $1.59B (FCF = operating CF − capex)

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
RevenueNo decline in the record—
Operating incomeNo decline in the record—

Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Contracted backlog

    $72.4B of remaining performance obligation at January 31, 2026.

    Source: Form 10-K (FY2026)

  • Margins

    FY2026 operating income was $8.3B (20% margin).

    Source: SEC EDGAR XBRL

24

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
15
Med
234
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Competition & technology shift

    AI-native competition

    Company disclosure (summarized from the 10-K)
    Competitors include packaged software vendors and AI-native startups that may bypass traditional workflows or displace established user interfaces.
    Company’s stated mitigation
    Embedding Agentforce across products.
    This site’s assessment
    Impact High / Likelihood Med
  2. 2Customers & sales

    Renewals and consumption

    Company disclosure (summarized from the 10-K)
    Customers may not renew or may reduce subscriptions; consumption-based usage may fall short.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  3. 3Funding & liquidity

    Debt for buybacks and acquisitions

    Company disclosure (summarized from the 10-K)
    Salesforce borrowed $6.0B for Informatica and issued $25B of notes for the ASR.
    Company’s stated mitigation
    We are also party to the Revolving Loan Credit Agreement, which provides for our $5.0 billion Credit Facility, as well as the Informatica Credit Agreements.
    This site’s assessment
    Impact Med / Likelihood Med
  4. 4M&A & integration

    Acquisition integration

    Company disclosure (summarized from the 10-K)
    Informatica and other acquisitions must be integrated.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  5. 5Information security

    Security and data

    Company disclosure (summarized from the 10-K)
    Breaches of customer data would damage trust.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact High / Likelihood Med

25

What changed in the risk factorsFrom SEC data

Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.

New or substantially reworded (8)

  • If our security measures, or those of our third-party data center providers, cloud computing platform providers, customers, partners, other third-party vendors or the underlying Internet infrastructure, are breached or otherwise compromised, resulting in the unauthorized access to, disclosure, alteration, corruption, destruction or loss of customer data, our data or our IT systems, or disruption of authorized access thereto, our services may be perceived as insecure, customers may reduce or terminate their use of our services, and we may incur significant reputational harm, legal liability, regulatory scrutiny or a negative financial impact.

  • • efforts by threat actors, including criminal organizations, state-sponsored actors and nation-states, to launch coordinated cyberattacks or supply chain attacks on our infrastructure or that of our third-party vendors, including through ransomware, destructive malware, distributed denial-of-service attacks or exploitation of previously unknown “zero-day” vulnerabilities;

  • • vulnerabilities arising from new technologies and infrastructures, including those from acquisitions, enhancements and updates to our existing products, and the adoption and deployment of AI technologies within our products, services, internal systems, which may introduce novel security, data governance, or operational risks;

  • • evolving and increasingly sophisticated techniques used to breach or disrupt IT systems and infrastructure, including the use or exploitation of AI technologies by threat actors to accelerate, scale or personalize cyberattacks, which may increase speed and effectiveness and limit our ability to anticipate, detect or mitigate such threats;

  • In the normal course of business, we and our customers are and have been the target of malicious cyberattacks and other security threats. Read more

    Although to date we have not identified any security incidents involving our systems that have had a material financial impact on us, there can be no assurance that future incidents will not be material or significant. As our market presence grows, we may face increased risks of cyberattacks and other security threats. Additionally, as AI technologies, including generative and agentic AI, continue to evolve, threat actors are using and exploiting these technologies to enhance the sophistication, scale, speed and effectiveness of security threats that may be more difficult to detect and defend against. Any delay in detecting, containing, or remediating a cybersecurity incident may result in additional harm, and in certain cases the full scope and…

  • A cybersecurity incident could result in unauthorized access to, or the loss or denial of authorized access to, our IT systems or data, or those of our customers, including intellectual property and other proprietary, sensitive or confidential information. We are subject to contractual, regulatory and other legal obligations to notify relevant stakeholders of certain security incidents. For example, SEC rules require disclosure on Form 8-K of the nature, scope and timing of any material cybersecurity incident and the reasonably likely impact of such incident. Assessing whether an incident is material or reportable may require complex judgment and investigation, and disclosure of an incident may itself adversely affect our reputation, customer relationships and exposure to legal or regulatory proceedings. A security incident or related disclosure could result in loss of confidence in the…

  • • in the case of foreign acquisitions, challenges with integrating operations across different cultures and languages and addressing the particular economic, currency, political, cybersecurity, regulatory and market risks associated with certain countries;

  • • AI-native companies and emerging startups that leverage generative AI and large language models as the core foundation of their architecture, offering highly specialized, autonomous, or automated solutions that may bypass traditional business process workflows or displace established user interfaces;

No longer in the text (4)

  • • efforts by hackers or sophisticated groups, such as criminal organizations, state-sponsored organizations or nation-states, to launch coordinated cyberattacks on internally built infrastructure or on third-party cloud-computing platform providers, including ransomware, destructive malware and distributed denial-of-service attacks;

  • • evolving techniques used to breach or sabotage IT systems and infrastructure, including as a result of the increased use of AI technologies by bad actors, which are generally not recognized until launched against a target, and could result in our being unable to anticipate or implement adequate measures to prevent such techniques;

  • In the normal course of business, we are and have been the target of malicious cyberattacks and have experienced other security incidents. Read more

    Although, to date, such identified security events have not had a material financial impact, there can be no assurance that future cyberattacks will not be material or significant. Additionally, as our market presence grows, we may face increased risks of cyberattacks or security threats, and as AI technologies, including generative AI models, develop rapidly, threat actors are using these technologies to create new sophisticated attack methods that are increasingly automated, targeted and coordinated and more difficult to defend against.

  • A security breach or incident could result in unauthorized parties obtaining access to, or the denial of authorized access to, our IT systems or data, or our customers’ systems or data, including intellectual property and proprietary, sensitive or other confidential information. We have contractual and other legal obligations to notify relevant stakeholders of security breaches. For example, SEC rules require disclosure on Form 8-K of the nature, scope and timing of any material cybersecurity incident and the reasonably likely impact of any such incident. A security breach or resulting mandatory disclosure could result in a loss of confidence in the security of our services, damage our reputation, negatively impact our future sales, disrupt our business and lead to increases in insurance premiums and legal, regulatory and financial exposure and liability. Further, there can be no…

25 more paragraphs differ; the filings below have the full text.

Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Mar 2, 2026 ↗ with the 10-K filed Mar 5, 2025 ↗.

26

What to watch going forwardSite analysis

  • Agentforce ARR and adoption.
  • Organic revenue re-acceleration expected by management in H2 FY2027.
  • Completion of the $25B ASR.
  • Debt levels.
  • cRPO growth.

27

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: October 14, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: March 2, 2026

Built on10-K FY2026 · filed 2026-03-02

Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Salesforce’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.