How Does Salesforce Stock Stack Up Against Its Peers?
Salesforce‘s stock has underperformed some key peers over the past year, raising questions about its position in the evolving cloud software landscape where it remains a leader despite strong competition from traditional titans like Microsoft and Oracle. A deeper dive reveals a strong free cash flow margin of nearly 32% and a moderate valuation with a PE ratio of 31.64, yet it grapples with slower revenue growth of just 8.41% and operating margins trailing larger rivals, suggesting a path to sustained outperformance requires renewed growth momentum.
- CRM’s 22.0% operating margin, below MSFT’s 46.3%, suggests higher growth reinvestment or less mature scale efficiency.
- CRM’s 8.4% revenue growth, lagging peers, signals broader cloud spending slowdown and intensifying AI competition.
- CRM’s 25.0% stock drop and 31.6 PE, trailing peers, reflects investor doubt on AI monetization or growth execution.
Here’s how Salesforce stacks up across size, valuation, and profitability versus key peers.
| CRM | MSFT | ORCL | ADBE | NOW | HUBS | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 228.5 | 3,498.5 | 579.4 | 131.1 | 143.5 | 18.8 |
| Revenue ($ Bil) | 40.3 | 293.8 | 61.0 | 23.2 | 12.7 | 3.0 |
| PE Ratio | 31.6 | 33.3 | 37.6 | 18.8 | 82.9 | -5,335.3 |
| LTM Revenue Growth | 8.4% | 15.6% | 11.1% | 10.7% | 21.1% | 19.2% |
| LTM Operating Margin | 22.0% | 46.3% | 31.9% | 36.2% | 13.9% | -1.6% |
| LTM FCF Margin | 32.0% | 26.6% | -21.6% | 41.4% | 30.8% | 17.7% |
| 12M Market Return | -25.0% | 14.1% | 30.7% | -24.9% | -33.0% | -49.0% |
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 | 11.1% | 8.4% | 6.0% | 17.7% | |
| ADBE | 10.7% | – | 10.8% | 10.2% | 11.5% |
| NOW | 21.1% | – | 22.4% | 23.8% | 22.9% |
| HUBS | 19.2% | – | 21.1% | 25.4% | 33.1% |
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 | 31.9% | 31.5% | 30.3% | 27.6% | |
| ADBE | 36.2% | – | 36.0% | 34.3% | 34.6% |
| NOW | 13.9% | – | 12.4% | 8.5% | 4.9% |
| HUBS | -1.6% | – | -2.4% | -4.8% | -5.9% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| CRM | 31.6 | 41.1 | 78.7 | 1255.0 | |
| MSFT | 33.3 | 35.3 | 35.5 | 38.7 | |
| ORCL | 37.6 | 43.7 | 43.7 | 33.4 | |
| ADBE | 18.8 | – | 28.1 | 37.4 | 58.9 |
| NOW | 82.9 | – | 110.6 | 625.1 | 2189.4 |
| HUBS | -5335.3 | – | 4437.7 | -211.3 | -259.9 |
Still not sure about CRM stock? Consider portfolio approach.
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