How Does Salesforce Stock Compare With Peers?
Salesforce (CRM) stock has significantly underperformed over the past year, dropping nearly 30%, but how does it measure up against peers scaling in dynamic cloud and enterprise software markets fueled by AI and digital transformation? A closer look reveals strong free cash flow generation (31.9% FCF margin) and improving profitability (22.0% operating margin), with a moderate valuation (34.06 PE) and significant analyst upside potential. However, its revenue growth (8.4%) can trail some rivals, and intense competition, notably from Microsoft, remains a key challenge.
- CRM’s 22.0% operating margin, though high, trails MSFT’s 46.3%, indicating differing scale benefits or product mix profitability.
- CRM’s 8.4% LTM revenue growth, moderate, lags key peers, signaling maturity or increased competition in its core market.
- CRM’s 27.9% stock drop and peer underperformance reflect investor re-evaluation of future growth despite its 34.1 PE.
Here’s how Salesforce stacks up across size, valuation, and profitability versus key peers.
| CRM | MSFT | ORCL | IBM | INTU | ADBE | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 246.0 | 3,649.8 | 623.2 | 288.7 | 183.1 | 143.4 |
| Revenue ($ Bil) | 40.3 | 293.8 | 59.0 | 65.4 | 19.4 | 23.2 |
| PE Ratio | 34.1 | 36.7 | 49.7 | 33.3 | 44.5 | 23.5 |
| LTM Revenue Growth | 8.4% | 15.6% | 9.7% | 4.5% | 17.1% | 10.7% |
| LTM Operating Margin | 22.0% | 46.3% | 31.6% | 17.7% | 26.7% | 36.2% |
| LTM FCF Margin | 32.0% | 26.6% | -10.0% | 18.1% | 32.7% | 41.4% |
| 12M Market Return | -27.9% | 11.5% | 16.2% | 33.2% | 2.2% | -38.7% |
For more details on Salesforce, read Buy or Sell CRM Stock. Below we compare CRM’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| CRM | 8.4% | 8.7% | 11.2% | 18.3% | |
| MSFT | 15.6% | 14.9% | 15.7% | 6.9% | |
| ORCL | 9.7% | 8.4% | 6.0% | 17.7% | |
| IBM | 4.5% | – | 1.4% | 2.2% | 5.5% |
| INTU | 17.1% | 15.6% | 13.3% | 12.9% | |
| ADBE | 10.7% | – | 10.8% | 10.2% | 11.5% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| CRM | 22.0% | 20.2% | 17.2% | 5.9% | |
| MSFT | 46.3% | 45.6% | 44.6% | 41.8% | |
| ORCL | 31.6% | 31.5% | 30.3% | 27.6% | |
| IBM | 17.7% | – | 16.1% | 15.9% | 13.5% |
| INTU | 26.7% | 26.2% | 23.7% | 21.9% | |
| ADBE | 36.2% | – | 36.0% | 34.3% | 34.6% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| CRM | 34.1 | 51.9 | 62.0 | 632.4 | |
| MSFT | 36.7 | 30.8 | 31.7 | 24.7 | |
| ORCL | 49.7 | 37.4 | 27.6 | 25.9 | |
| IBM | 33.3 | – | 33.6 | 19.9 | 77.5 |
| INTU | 44.5 | 45.5 | 59.1 | 45.9 | |
| ADBE | 23.5 | – | 35.8 | 50.2 | 33.2 |
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