CRM
Salesforce, Inc.
Technology · Software - Application · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The company earned a perfect score on financial health, supported by a debt-to-equity ratio of 0.24, interest coverage of 25.7x, and total assets of $112.3 billion.
- A disciplined dividend payout ratio of 21.3% of net income earned a perfect dividend score, justifying the Dividend Candidate label.
- Strong earnings momentum — with net income rising from $1,887,000,000 in 2026Q2 to $2,107,000,000 in 2027Q1 and operating income recovering sharply in 2027Q1 — contributed to a high momentum score.
Why Not Higher
- Single-digit revenue growth of 9.6% tempered the growth score, as the model rewards faster top-line expansion more fully.
- A return on assets of 6.6% relative to a very large asset base of $112.3 billion, combined with the Enterprise AI Software theme factor contributing zero points, left meaningful scoring headroom on the table.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $37,895,000,000 to FY2026's $41,525,000,000, a gain of 9.6%. Over the same period, net income rose 20.3% and diluted EPS expanded 22.6%, from $6.36 in FY2025 to $7.80 in FY2026.
The model rewarded the meaningful acceleration in earnings and EPS relative to the more moderate top-line growth rate, while the single-digit revenue growth rate likely tempered the overall score below the maximum.
In FY2026, Salesforce posted an operating margin of 20.1%, a net margin of 18.0%, and a return on assets of 6.6%.
The model recognized solid margin discipline and above-average profitability for a large-scale software company, though the return on assets figure suggests room for further asset efficiency, which may have kept the score from reaching the maximum.
In FY2026, Salesforce carried a debt-to-equity ratio of 0.24, an interest coverage ratio of 25.7, and total assets of $112,305,000,000.
The model awarded the maximum score, reflecting a very low leverage position, an exceptionally comfortable ability to service interest obligations, and a large asset base that together signal a highly resilient balance sheet.
Over the last four reported quarters, revenue held in a tight range from $10,236,000,000 in 2026Q2 through $11,201,000,000 in 2026Q4, with a slight dip to $11,133,000,000 in 2027Q1. Net income showed a generally rising trend from $1,887,000,000 in 2026Q2 to $2,107,000,000 in 2027Q1, while operating income rebounded to $2,347,000,000 in 2027Q1 after a trough of $1,869,000,000 in 2026Q4.
The model rewarded the overall stability and upward drift in earnings alongside the operating income recovery in the most recent quarter, while the modest sequential revenue softness in 2027Q1 likely prevented a perfect score.
In FY2026, Salesforce's dividend payout ratio stood at 21.3% of net income.
The model awarded the maximum score, recognizing that a payout ratio of 21.3% in FY2026 reflects a disciplined, sustainable dividend policy that returns capital to shareholders while retaining the majority of earnings for reinvestment.
Salesforce is assigned to the Enterprise AI Software macro theme.
Although the company carries an Enterprise AI Software theme assignment, this designation did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Salesforce delivered 9.6% revenue growth to $41.5 billion in FY2026, while net income and diluted EPS expanded at a faster pace of 20.3% and 22.6% respectively, reflecting meaningful operating leverage. The company maintains a highly disciplined balance sheet with a debt-to-equity ratio of just 0.24 and interest coverage of 25.7x, earning a perfect financial health score. Profitability is solid, with a 20.1% operating margin and 18.0% net margin, and a conservative dividend payout ratio of 21.3% signals a sustainable capital return policy. Recent quarterly trends show stable revenues and a recovery in operating income to $2,347,000,000 in 2027Q1, reinforcing the company's earnings resilience.
Plain English
Salesforce is a large software company that grew its revenue by nearly 10% last year while growing profits even faster, keeps very little debt, and pays out only a small portion of its earnings as dividends — making it look financially healthy and well-managed.
Bull Case vs. Bear Case
Bull Case
- Earnings growth is outpacing revenue growth: net income rose 20.3% and diluted EPS expanded 22.6% in FY2026, suggesting improving operational efficiency on a moderately growing top line.
- The balance sheet is exceptionally strong, with a debt-to-equity ratio of 0.24 and interest coverage of 25.7x, providing significant financial flexibility and resilience.
- A dividend payout ratio of just 21.3% of net income indicates the company can sustain and potentially grow its dividend while retaining the majority of earnings for reinvestment.
Bear Case
- Top-line revenue growth of 9.6% is solid but single-digit, which may limit upside for investors seeking faster-growing opportunities.
- Return on assets of 6.6% against a $112.3 billion asset base suggests the company has room to improve how efficiently it deploys its large asset pool.
- The Enterprise AI Software theme assignment did not contribute positively to the model score under the current methodology, leaving a potential scoring dimension unrealized.
What Could Change the Picture
Bullish Triggers
- A sustained acceleration in revenue growth beyond the current 9.6% rate, combined with continued earnings leverage, would strengthen the bull case materially.
- Improvement in return on assets above the current 6.6% level would signal better capital efficiency across the company's $112.3 billion asset base.
Bearish Triggers
- A reversal of the recent operating income recovery — which rebounded to $2,347,000,000 in 2027Q1 after a trough of $1,869,000,000 in 2026Q4 — would raise concerns about margin sustainability.
- Any meaningful increase in the debt-to-equity ratio from its current low level of 0.24 could signal a shift in financial strategy that warrants closer scrutiny.
Risk Profile
Very Low RiskSalesforce carries a Very Low risk rating, underpinned by a debt-to-equity ratio of 0.24 and interest coverage of 25.7x that together indicate minimal financial distress risk. Quarterly results have been stable, with revenues ranging from $10,236,000,000 to $11,201,000,000 over the last four reported quarters and operating income recovering strongly to $2,347,000,000 in 2027Q1.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.