Key statistics

Is CRM a good stock to buy in 2026?

CRM stock appears attractively valued compared to its sector, with a P/E ratio of 23.41x significantly lower than the Software – Application sector average of 65.6x. Our discounted cash flow (DCF) model suggests a fair value of $249.61, indicating a potential upside of 33.7% from the current price, which aligns with the strong sentiment from analysts who give CRM a 76.3% buy rating. While these metrics suggest a potentially favorable outlook for CRM, investors should always conduct their own comprehensive research as this does not constitute investment advice.

2026 CRM price scenarios

Based on analyst consensus of $287 from 97 analysts. Not a prediction by Alert Invest.

About Salesforce, Inc. (CRM)

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 companie

Marc R. Benioff leads Salesforce, a technology giant with 76,453 dedicated employees, whose distinctive strengths lie in its expansive cloud-based ecosystem, pioneering spirit in SaaS, and a deep commitment to customer success. Its market dominance stems from continuous innovation in AI, data analytics, and a comprehensive suite of tools that span sales, service, marketing, and commerce, making it a critical partner for businesses globally.

CRM competitive moat and business analysis

Salesforce’s competitive moat is primarily derived from its extensive ecosystem, strong brand recognition, and high customer switching costs, which collectively contribute to its robust financial performance. The company boasts an impressive gross margin of 77.68% and a net margin of 17.96%, reflecting its pricing power and efficient operations within the Software – Application industry. While a traditional Return on Equity (ROE) figure is not available, these strong margins suggest effective capital deployment within its operational context.

For fiscal year 2026, ending January 31, Salesforce’s revenue segmentation will be key to understanding its growth drivers. The company’s diverse product portfolio, categorized by solution areas and geographical regions, underpins its strategy. Historically, its core Sales Cloud and Service Cloud segments have been significant contributors, complemented by growth in platforms like Marketing Cloud and Commerce Cloud, as well as analytics and integration offerings. Geographic distribution, while not detailed here, typically shows a strong presence in North America, with expanding footprints in Europe and Asia-Pacific markets, reflecting its global enterprise customer base.

The long-term trend for Salesforce’s competitive moat appears stable, supported by its consistent 9.6% year-over-year revenue growth. This sustained expansion, even at its considerable scale, suggests ongoing demand for its CRM solutions and successful product development. Although a specific transcript quote is not available, management commentary often emphasizes the company’s commitment to innovation, particularly in integrating artificial intelligence across its Customer 360 platform, which serves to enhance customer value and fortify its market position against emerging threats.

When evaluating CRM stock, it’s insightful to compare its market position and financials with key peers in the technology sector. For instance, comparing CRM vs APP or CRM vs CSCO can highlight differences in valuation multiples, growth trajectories, and dividend policies, given their varying business models within software and hardware. A comparison of CRM vs IBM might reveal contrasts in legacy versus cloud-native enterprise solutions, offering different risk-reward profiles for investors considering the CRM valuation against broader tech plays.

Salesforce, Inc. analyst rating

Based on 97 analysts. 76.3% rate CRM Buy or Strong Buy.

With 76.3% of analysts rating CRM stock as a Buy or Strong Buy, this indicates a very positive sentiment within the analyst community for a company of Salesforce’s size and market presence in the Technology sector. This strong consensus suggests confidence in its future performance and market leadership.

Is CRM undervalued or overvalued?

An examination of CRM valuation metrics reveals a compelling narrative. The company’s P/E ratio stands at 23.41x, which represents a substantial discount when compared to the broader Software – Application sector average of 65.6x. This significant difference suggests that CRM stock could be undervalued relative to its peers, offering an attractive entry point for investors.

Furthermore, our discounted cash flow (DCF) model calculates a fair value of $249.61 for CRM, implying a 33.7% upside from its current trading price. This DCF analysis, combined with the favorable P/E ratio, strongly supports the view that CRM valuation is currently attractive, making the question of “is CRM a good stock” particularly pertinent for value-oriented investors seeking exposure to the enterprise software market.

CRM financial health & key metrics

For value investors, CRM stock presents an interesting profile with several indicators pointing to financial health and potential undervaluation. Its P/E ratio significantly below the sector average, coupled with a healthy net margin of 17.96% and strong free cash flow yield of 8.23%, suggests efficient operations and attractive pricing. While the lack of an ROE figure might obscure one aspect of profitability, the low debt-to-equity ratio of 0.29x indicates a conservative balance sheet, and the DCF model reinforces the view that CRM is an undervalued asset with strong underlying fundamentals.

Salesforce, Inc. earnings history & next report

Salesforce, Inc. reported EPS of $3.81, beating estimates by 24.92%. Next earnings: 2026-05-27 with EPS estimate of $3.09.

Looking ahead to Salesforce’s next earnings report on 2026-05-27, investors will be closely monitoring whether the company can once again surpass EPS estimates, which currently stand at $3.09. Key areas to watch will include growth in subscription revenues, updates on AI integration across its product suite, and any shifts in guidance, as these factors will heavily influence the future trajectory and market sentiment for CRM stock.

CRM insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent CRM analyst rating changes

Salesforce, Inc. stock news today

How does CRM compare to its peers?

Understanding the competitive landscape is crucial for a complete CRM valuation and determining “is CRM a good stock” relative to its peers. Salesforce operates in a dynamic market, and comparing its performance against other technology leaders can offer valuable perspective.

FAQ — Salesforce, Inc. (CRM) stock