NYSEInformation TechnologySoftware - ApplicationSnapshot 2026-08-31
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Create your account →Intact: The reason to own it still holds.
Salesforce grows revenue about 11% yearly, reaching $46 billion in FY27. Profit margins stay strong near 21%. The company plans a $25 billion accelerated share repurchase. Operating cash flow grows 9% to 10% in FY27, supporting financial strength.
Salesforce faces pressure from volatile management and a recent 19% price drop. Growth could slow below 11%, and margins might compress below 20%. Execution risks on the large share repurchase program could weigh on capital allocation.
The market price is about 35% below our fair value near $260 and reflects roughly 11% revenue growth. Our view aligns with consensus revenue growth but sees risk from recent share price weakness and management volatility.
Breaks if: Failure to execute or significant delay in $25 billion share repurchase
Breaks if: Operating cash flow growth falls below 9% in FY27
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth and cash flow generation. The current thesis is intact, supported by strong recent financial performance and management priorities.
The market appears to price CRM as cheap compared to its peers, with a low expectations gap. This suggests that while there is some recognition of its recent performance, there is still room for improvement in execution quality.
Fundamentals are likely to remain stable, with management on track to meet revenue and cash flow growth targets. However, there is elevated risk due to the potential for guidance cuts and the volatility in management quality.
The thesis hinges on the performance of sector bellwethers like SAP, NOW, and ADBE, which could influence CRM's momentum. Additionally, the company's ability to maintain guidance and execute its share repurchase program will be key factors.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat and the initiation of FY27 revenue guidance between $45.8 billion and $46.2 billion support this improvement. The guidance reflects strong demand for AI products and signals positive momentum for the company. There are no significant threats noted that could weaken this outlook.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Operating margin falls below 20.9% in FY27
Breaks if: Revenue falls below $45.9 billion in FY27
Provide full-year FY27 revenue guidance targeting $45.8 billion to $46.2 billion, reflecting 10% to 11% growth year-over-year.
Overall, CRM shows promise with strong recent results, but it faces sector headwinds and management volatility. Not investment advice.
