The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 86 | 9.7x | 20.8x | Top tier | |
Growth | 79 | 89.6% | 6.1% | Top tier | |
Quality | 90 | 18.3% | 6.6% | Top tier | |
Safety | 80 | 0.5x | 0.7x | Top tier | |
Capital Return | 56 | 1.05% | 2.02% | Around median | |
Momentum | 9 | -39.9% | 4.1% | Bottom tier | |
Sentiment | 70 | 35 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Salesforce, Inc. (NYSE: CRM) is the global leader in cloud-based customer relationship management (CRM) software. The company generates its revenue primarily from selling subscriptions to its various cloud services, such as Sales Cloud, Service Cloud, the Slack platform, Tableau data analytics tools, MuleSoft data integration, and Informatica. The company utilizes a Software-as-a-Service (SaaS) model to enable organizations to digitalize their operations and deliver personalized customer experiences across multiple channels, and is currently shifting aggressively toward integrating Agentic AI across all its applications.
In the first quarter of fiscal year 2027 (ended May 27, 2026), Salesforce achieved record results, with revenue reaching $11.13 billion, an increase of 13% nominal and 12% in constant currency compared to the previous year. Current remaining performance obligations (cRPO) reached approximately $33.6 billion, registering a growth of 14% nominal. The company also recorded a record non-GAAP operating margin of 34.8% (up 250 basis points) and a GAAP operating margin of 21.1%, while generating operating cash flows of $6.7 billion.
In terms of segment mix and operational performance, Sales Cloud, Service Cloud, and the Slack platform together accounted for over 60% of the new net Annual Contract Value (AOV) in the first quarter. The Annual Recurring Revenue (ARR) for the Agentforce AI platform surpassed the $1 billion mark, while the combined AI and Data portfolio with Data 360 and Informatica generated approximately $3.4 billion in ARR, reflecting a significant acceleration in the adoption of modern technologies by both existing and new customers.
Salesforce stock enjoys a strong analyst consensus recommending 'Buy', with an average price target of $265.75, a high target of $325, and a low target of $215. Considering the stock's 52-week trading range between $161.4 and $276.8 and its market capitalization of $137.8 billion, the stock currently trades near levels that provide good room for growth to reach the average analyst target. This valuation reflects high confidence in the company's ability to achieve revenue acceleration during the second half of fiscal year 2027, driven by the AI boom.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The Agentforce platform is Salesforce's latest innovation in agentic AI, enabling companies to build and run autonomous software agents to handle sales, service, and technical support without complex human intervention. Financially, the platform achieved outstanding success, surpassing the $1 billion mark in Annual Recurring Revenue (ARR) in the first quarter of fiscal year 2027. It also processed 28.6 trillion tokens, translating into 3.8 billion Agent Work Units (AWUs) for customers during the same quarter, representing a 152% increase quarter-over-quarter.
Informatica contributed positively to supporting Salesforce's total revenue growth, with the combined Data and AI Annual Recurring Revenue (ARR) alongside Data 360 reaching approximately $3.4 billion in the first quarter of fiscal year 2027. Informatica's on-premise business helped first-quarter results beat the company's guidance. However, management notes that this acquisition could cause increased volatility in quarterly license revenues in the future, depending on the timing of local contract renewals.
Salesforce launched the largest Accelerated Share Repurchase (ASR) program in its history, valued at $25 billion, representing half of the total $50 billion repurchase authorization. This program successfully reduced the diluted share count by 10% year-over-year in the first quarter of fiscal year 2027 by retiring 103 million shares from circulation. This step directly contributed to increasing non-GAAP earnings per share by $0.23 and GAAP earnings per share by $0.14 during the quarter.
Automated analysis for informational purposes only — not investment advice.
The Headless 360 strategy aims to make all Salesforce applications and services available and accessible via APIs and the MCP protocol without requiring the company's traditional user interface. This allows customers to integrate Salesforce's CRM data and capabilities directly into any external AI model, such as ChatGPT, Claude, or any preferred working environment. This strategy has seen significant latent demand, with the platform recording over 1.5 million MCP tool calls and approximately 1 trillion API calls during the first quarter of fiscal year 2027.
Salesforce raised the lower and upper bounds of its fiscal year 2027 revenue guidance to be between $45.9 billion and $46.2 billion, with subscription and support growth expected to be 11% in constant currency. The company also maintained its non-GAAP operating margin guidance at 34.3%, while adjusting the GAAP margin to 20.6% due to restructuring costs. Management expects an organic acceleration of revenue in the second half of the fiscal year, supported by the sales momentum from the first half.