Salesforce, Inc. (CRM) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Salesforce, Inc.

Updated on October 24, 2026 · accounts published on August 26, 2026

A cash-rich software business at record margins, still earning modest returns on capital

Salesforce trades at a P/E of 20.9 over the last 12 months, 35 % below its sector median, with a record 21.5 % operating margin in fiscal 2026.

• Is Salesforce expensive or cheap? Salesforce trades at a P/E of 20.9 over the last 12 months, 35 % below the 32.0 median of its sector.
• How is the business doing? Operating margin hit 21.5 % in fiscal 2026, the highest in 12 years and over three times the 6.2 % average since 2015.
• How strong is the balance sheet? Net debt is $8.35 per share in fiscal 2026, about 3.6 % of the share price and 0.7× EBITDA.
• What to expect from the next earnings? Salesforce reports on December 2, 2026; analysts expect EPS of $3.43 and it beat estimates in 7 of the last 8 quarters.
• Does it grow with real cash or by diluting shareholders? Free cash flow was 35 % of revenue in fiscal 2026, while stock-based pay took 8.5 %, under the 10 % healthy limit for tech.

Is Salesforce expensive or cheap?

Over the last 12 months Salesforce trades at a P/E of 20.9, 35 % below the 32.0 median of the 314 companies in its sector. On cash flow the gap is wider. Its EV/EBITDA of 13.2× is less than half its five-year average of 30.5×, and its free cash flow yield of 8.1 % is almost double its 4.2 % earnings yield, so the business turns more cash than its accounting profit suggests. The market has not rewarded the improvement much: the stock is down 10 % over 12 months and sits 13 % below its 52-week high of $266.23, in a range whose low was $150.12.

How is the business doing?

Profitability is the big change. The operating margin of 21.5 % in fiscal 2026 is the highest of the last 12 fiscal years and more than three times the 6.2 % average for 2015-2026. Over the last 12 months revenue grew 9.6 % while EPS grew 22.6 %, a sign that most of the gain comes from efficiency rather than from selling more. The net margin is 22 % and ROE 20 %. The weak spot is return on capital: ROIC of 8.7 % over the last 12 months is only 0.6 points above the sector median of 8.2 %, and it has not cleared 10 % in any of the last 10 fiscal years.

How strong is the balance sheet?

Debt is not a concern. In fiscal 2026 Salesforce held $18.42 of debt per share against $10.07 of cash, leaving net debt of $8.35, equal to 3.6 % of the current price and 0.7× EBITDA, well within the 1.5× that software companies tolerate. A debt-to-equity ratio of 1.09 looks higher than that, but the Altman Z of 3.1 places it in the safe zone and the Piotroski score is 7 of 9 over the last 12 months. The current ratio of 0.84 is below 1, so short-term liabilities exceed short-term assets. The dividend is a minor part of the return: a 0.8 % yield with a payout of 21 % of fiscal 2026 earnings.

What to expect from the next earnings?

Salesforce publishes its next results on December 2, 2026, and analysts expect EPS of $3.43 for the quarter. The bar has proven easy to clear: it beat EPS estimates in 7 of the last 8 quarters, and on August 26, 2026 it reported $5.90 against $3.27 expected, an 80 % surprise and the largest in absolute terms of those 8 quarters. Even so, analysts barely moved: the fiscal 2027 EPS consensus went from $16.70 to $16.75 over the last 30 days among 32 analysts, and the revenue consensus was also flat. Of 98 analysts covering the company, 73 rate it a buy, 21 a hold and 2 a sell.

Does it grow with real cash or by diluting shareholders?

Generic ratios fall short in technology, where part of the pay is in shares and growth drives value, so the sector looks at growth, pricing power and dilution. Salesforce passes most tests. Free cash flow was 35 % of revenue in fiscal 2026, above the 20 % healthy mark, and stock-based compensation was 8.5 % of revenue, below the 10 % limit. The gross margin of 78 % clears the 70 % bar for software, and the Rule of 40 score of 46 is in elite territory. It falls short on growth and capital: revenue per share grew 11.4 % a year over fiscal 2023-2026, below the 15 % healthy level, and ROIC of 8.7 % is far from 15 %.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.