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1. Company Snapshot

1.a. Company Description

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 companies to deliver trusted and highly personalized customer service and support at scale.Its service offerings also comprise flexible platform that enables companies of various sizes, locations, and industries to build business apps to bring them closer to their customers with drag-and-drop tools; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, a system of engagement.In addition, the company's service offerings include Marketing offering that enables companies to plan, personalize, and optimize one-to-one customer marketing journeys; and Commerce offering, which empowers brands to unify the customer experience across mobile, web, social, and store commerce points.


Further, its service offerings comprise Tableau, an end-to-end analytics solution serving various enterprise use cases; and MuleSoft, an integration offering that allows its customers to unlock data across their enterprise.The company provides its service offering for customers in financial services, healthcare and life sciences, manufacturing, and other industries.It also offers professional services; and in-person and online courses to certify its customers and partners on architecting, administering, deploying, and developing its service offerings.


The company provides its services through direct sales; and consulting firms, systems integrators, and other partners.Salesforce, Inc.was incorporated in 1999 and is headquartered in San Francisco, California.

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1.b. Last Insights on CRM

Salesforce's recent performance is driven by AI integration, solid earnings, and a discounted valuation. The company raised its revenue guidance for 2030 to over $60 billion, exceeding analyst estimates. Its Q2 FY2026 results showed strong revenue and EPS growth, expanding EBIT margins, and robust operating cash flow projections. The AI and Data Cloud product line grew 120% YoY, securing 6,000+ Agentforce deals. A $20 billion share buyback program also supports shareholder value. Analysts predict a 34.02% upside in the stock, citing robust Q2 results and a compelling entry point.

1.c. Company Highlights

2. Salesforce's Q3 Earnings: A Strong Showing with AgentForce Momentum

Salesforce reported a robust fiscal 2026 third-quarter performance, with revenue reaching $10.26 billion, up 9% year over year. The non-GAAP operating margin expanded by 240 basis points to 35.5%, while the GAAP operating margin rose by 130 basis points. Earnings per share (EPS) came in at $3.25, beating estimates of $2.86. Operating cash flow was $2.3 billion, up 17%, and free cash flow was $2.2 billion, up 22%. The company's Current Remaining Performance Obligation (CRPO) stood at $29.4 billion, up 11%, and Remaining Performance Obligation (RPO) nearly reached $60 billion, growing 12% year over year.

Publication Date: Dec -04

📋 Highlights
  • Revenue & Margin Growth:: Q3 revenue hit $10.26B (+9% YoY), non-GAAP operating margin reached 35.5% (+240 bps YoY).
  • CRPO & RPO Expansion:: CRPO grew to $29.4B (+11% YoY), RPO neared $60B (+12% YoY), signaling strong future revenue visibility.
  • AgentForce & Data Growth:: ARR hit $1.4B (+114% YoY), with AgentForce ARR at $540M (+330% YoY), powered by 18,500 deals and 9,500 paid transactions (+50% QoQ).
  • Cash Flow Strength:: Operating cash flow surged to $2.3B (+17% YoY), free cash flow rose to $2.2B (+22% YoY).
  • Strategic Execution:: Informatica acquisition on track 3 months ahead of schedule; Data 360 ingested 32 trillion records (+119% YoY), driving AI infrastructure growth.

AgentForce and Data Revenue Growth

The company's AgentForce and Data revenue achieved significant growth, reaching nearly $1.4 billion in Annual Recurring Revenue (ARR), up 114% year over year. AgentForce ARR alone was about $540 million, up 330%. The company has closed over 18,500 AgentForce deals, with 9,500 paid transactions, representing a 50% quarter-over-quarter increase. This momentum is a testament to the growing adoption of Salesforce's AI-driven solutions.

Operational Highlights and Customer Adoption

Salesforce is seeing strong customer adoption across its products, with notable companies like Uber, Conagra, and General Motors utilizing its solutions. The acquisition of Informatica is proceeding well, ahead of schedule and under budget. Data 360 ingested 32 trillion records in Q3, up 119% year over year. The company's focus on becoming an "agentic enterprise" is driving growth across its various clouds, including Sales, Service, and Slack.

Guidance and Valuation

Salesforce guided fiscal year 2026 organic subscription and support revenue growth of approximately 9% year-over-year in constant currency. Including Informatica, revenue is expected to be $41.545 billion to $41.55 billion, representing approximately 9-10% growth in nominal and 9% in constant currency. With a P/E Ratio of 22.85 and an EV/EBITDA of 22.64, the market appears to be pricing in Salesforce's growth prospects. Analysts estimate next year's revenue growth at 8.7%, which is slightly below this year's expected growth rate.

Outlook and Conclusion

CEO Marc Benioff highlighted the company's focus on delivering accurate and reliable AI, driven by its data infrastructure. With significant growth in its data cloud and a strong pipeline of deals, Salesforce is well-positioned to drive future growth. The company's efforts to become an "agentic enterprise" are expected to continue driving momentum across its business. As Salesforce continues to invest in high-growth areas, its ability to deliver on its growth prospects will be crucial in justifying its current valuation multiples.

3. NewsRoom

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Salesforce, Inc. (CRM) Discusses Q3 Update on Customer Momentum and Success and Agentic Enterprise Strategy Transcript

00:38

Source: seekingalpha.com

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Salesforce CEO calls AI a 'commodity feature', says the technology bolsters enterprise software

Dec -04

Source: cnbc.com

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Salesforce Inc (CRM) Q3 2026 Earnings Call Highlights: Strong Revenue Growth and AI-Driven Expansion

Dec -04

Source: gurufocus.com

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Market Today: WBD Sale Bids, Meta Cuts, Apple Shake-Up

Dec -04

Source: gurufocus.com

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Dow Jones Today: Major Stock Indexes Little Changed; Weekly Jobless Claims Unexpectedly Fall; Inflation Data on Tap Tomorrow

Dec -04

Source: investopedia.com

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Salesforce's Agentforce Life Sciences Selected by AstraZeneca as Its Unified Global Platform to Help Transform Customer Engagement

Dec -04

Source: businesswire.com

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Salesforce's Strong Q3 Performance Boosts Stock Despite Year-to-Date Decline

Dec -04

Source: gurufocus.com

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Agentforce Growing "Pretty Nicely," Future A.I. Growth CRM's Big Question

Dec -04

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (20.40%)

6. Segments

Multiple Enterprise Cloud Computing Market

Expected Growth: 20.4%

Salesforce’s cloud computing solutions for enterprises drive digital transformation, fueling growth. Key drivers include increasing adoption of cloud-based Customer Relationship Management (CRM) capabilities and expanding artificial intelligence (AI) integrations, enabling businesses to enhance customer experiences and gain data-driven insights.

7. Detailed Products

Sales Cloud

A customer relationship management (CRM) platform that enables businesses to manage sales, marketing, and customer service activities.

Service Cloud

A customer service platform that enables businesses to provide personalized, omnichannel customer service and support.

Marketing Cloud

A digital marketing platform that enables businesses to manage customer journeys, personalize customer experiences, and optimize marketing campaigns.

Commerce Cloud

An ecommerce platform that enables businesses to create seamless, omnichannel shopping experiences.

Community Cloud

A platform that enables businesses to create online communities, portals, and forums to engage with customers, partners, and employees.

Analytics Cloud

A cloud-based analytics platform that enables businesses to explore, prepare, and visualize data to gain insights and make data-driven decisions.

IoT Cloud

An Internet of Things (IoT) platform that enables businesses to connect, process, and analyze IoT data to gain insights and automate business processes.

Einstein Analytics

A cloud-based analytics platform that enables businesses to explore, prepare, and visualize data to gain insights and make data-driven decisions.

MuleSoft

An integration platform that enables businesses to connect applications, data, and devices to create a unified, omnichannel customer experience.

8. Salesforce, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Salesforce, Inc. has a low threat of substitutes due to its unique cloud-based customer relationship management (CRM) software, which is highly customizable and integrated with other business applications.

Bargaining Power Of Customers

Salesforce, Inc. has a medium bargaining power of customers due to the presence of large enterprises and small businesses, which can negotiate prices and terms, but the company's strong brand and customer loyalty mitigate this power.

Bargaining Power Of Suppliers

Salesforce, Inc. has a low bargaining power of suppliers due to its dominant position in the CRM market, allowing it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

Salesforce, Inc. has a low threat of new entrants due to the high barriers to entry, including the need for significant investments in research and development, marketing, and sales.

Intensity Of Rivalry

Salesforce, Inc. operates in a highly competitive CRM market, with intense rivalry among established players, including Microsoft, Oracle, and SAP, which drives innovation and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.75%
Debt Cost 3.95%
Equity Weight 85.25%
Equity Cost 10.43%
WACC 9.47%
Leverage 17.30%

11. Quality Control: Salesforce, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Intuit

A-Score: 5.5/10

Value: 1.2

Growth: 8.2

Quality: 8.6

Yield: 1.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

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Salesforce

A-Score: 5.0/10

Value: 2.2

Growth: 8.9

Quality: 8.4

Yield: 1.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

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Cadence Design Systems

A-Score: 4.9/10

Value: 0.0

Growth: 7.3

Quality: 8.4

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

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AppLovin

A-Score: 4.9/10

Value: 0.0

Growth: 9.7

Quality: 8.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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ServiceNow

A-Score: 4.6/10

Value: 0.0

Growth: 9.1

Quality: 8.0

Yield: 0.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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FICO

A-Score: 4.0/10

Value: 2.0

Growth: 8.1

Quality: 7.6

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

247.46$

Current Price

247.46$

Potential

-0.00%

Expected Cash-Flows