Salesforce CRM
Salesforce combines a recent pullback with cheaper-than-usual valuation and growing earnings.
Salesforce shares have slipped 12.9% over the past month to $229.79, and sit 13% below their 52-week high. Over the past year the stock is down 3%. When a company's long-term trend is still pointing up, a short pullback like this can give new buyers a better entry price. A dip can also be the start of a longer slide, so the reasons behind it matter.
At about 21.0 times earnings, the stock is priced below its own recent history. Its price-to-earnings ratio was 65.7 in 2024, 53.0 in 2025, 27.0 in 2026, an average of 48.6. A lower multiple than usual can mean the market is underpricing the business, or that investors expect slower growth ahead.
In the quarter ended Jul 31, 2026, earnings per share rose 119% to $4.29 and revenue grew 11% to $11.35B, compared with the same quarter a year earlier.
Over the last 3 fiscal years, revenue has grown at a compound annual rate (CAGR) of 9.8%, while earnings per share at 233.7% a year.
We found little recent news coverage, so sentiment is neutral in our score.
We found no notable government, regulatory or trade-policy headlines for Salesforce in the past month.
Insiders have also been buying: 1 insider purchased $999K of stock on the open market in the past 90 days.
Why it might go up
- Cheaper than usual: P/E 21.0 vs. a 3-year average of 48.6
- Earnings per share up 119% in the latest quarter
- Revenue has compounded 10% a year
- Pulled back 12.9% in a month while the longer trend is still up
What could go wrong
- A broad market sell-off can pull down even companies with strong numbers.