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Marketing and CommerceNarrow moat

Salesforce (CRM) — moat facet

Salesforce's Marketing and Commerce line grew 45.9% in fiscal 2018 and 3% in fiscal 2026, slowing every year in between.

Marketing and Commerce is the line where Salesforce's growth problem is plainest. It was $5,428 million in fiscal 2026, 14% of subscription revenue, and grew 3%1, the slowest of any subscription line.

Salesforce Marketing and Commerce revenue growth (%)45.9FY201837.3FY201932.0FY202025.0FY202124.5FY202215.7FY20238.8FY20247.5FY20252.8FY2026Salesforce Forms 10-K FY2019-FY2026, revenue by service offering
Eight straight years of slower growth.

It sells campaign and e-commerce software. The 10-K describes marketing tools to "personalize engagement across the customer lifecycle" and a commerce offering that connects "marketing and sales to service and fulfillment" on one platform2.

It was once the fastest grower. Marketing Cloud revenue was $505.3 million in fiscal 20153 and $654.1 million in fiscal 20164. On the later basis, with commerce included, it was $947 million in fiscal 20175, $2,506 million in fiscal 20206 and $4,516 million in fiscal 20237, 8.3 times fiscal 2016 by fiscal 20268. Growth ran at 45.9% in fiscal 2018 and 37.3% in fiscal 2019, then fell every year: 32.0%, 25.0%, 24.5%, 15.7%, 8.8%, 7.5% and 2.8%9. IDC has still ranked Salesforce first in marketing software for a seventh year10.

The company does not explain the slowdown line by line or disclose its profitability. The line's share of subscription revenue was 15% in fiscal 2025 and 14% in fiscal 202611.

The line's share of subscription revenue has fallen each year since fiscal 2023, from 15.6% to 13.8%12. Commerce and marketing tools are sold to the same customers as Sales and Service, and the 10-K stresses the "Native integrations between our Commerce, Sales, Service and Marketing offerings"13; the slowdown suggests those integrations have not been enough to keep the line growing with the rest.

IDC ranked Salesforce first in marketing software for a seventh year14, so the slowdown is not obviously a loss of position. It may be the market, or the product. Salesforce reports the line inside Agentforce Apps from fiscal 2027, so investors will not be able to tell which.

From the first quarter of fiscal 2027 Marketing and Commerce reports inside Agentforce Apps15, so the line can no longer be watched on its own. The verdict on it will come only indirectly. If Agentforce Apps, which grew 8% at constant currency in the second quarter16, slows while Sales and Service hold, the weakness will be here.

Moat trajectory: Narrowing

Growth 7.5% (FY2025) to 2.8% (FY2026).

The number that tests this moat
Moat Explorer calc
Marketing and Commerce revenue growth, full year
+2.8% (FY2026: $5,428M against $5,281M), from +7.5% in FY2025

The weakest line; a decline would mean the bundle has stopped protecting it.

How it's calculated: Marketing and Commerce service-offering revenue over the prior year, Salesforce Form 10-K FY2026.
Source: Moat Explorer calculation from Salesforce filings ↗
References
  1. ReportedIt was $5,428 million in fiscal 2026, 14% of subscription revenue, and grew 3%, the slowest of any subscription line.
    Salesforce Form 10-K for fiscal 2026 (year ended 31 January 2026) - revenue by service offering, geography and timing of recognition. — FY2026 · publ. 2 March 2026 · source ↗
  2. ReportedThe 10-K describes marketing tools to "personalize engagement across the customer lifecycle" and a commerce offering that connects "marketing and sales to service and fulfillment" on one platform.
    Salesforce Form 10-K for fiscal 2026 (year ended 31 January 2026) - revenue by service offering, geography and timing of recognition. — FY2026 · publ. 2 March 2026 · source ↗
  3. ReportedMarketing Cloud revenue was $505.3 million in fiscal 2015 and $654.1 million in fiscal 2016.
    Salesforce Form 10-K for fiscal 2017 (year ended 31 January 2017), $ thousands - revenue by service offering, net loss and income from operations for fiscal 2015-2017. — FY2017 · publ. March 2017 · source ↗
  4. ReportedMarketing Cloud revenue was $505.3 million in fiscal 2015 and $654.1 million in fiscal 2016.
    Salesforce Form 10-K for fiscal 2018 (year ended 31 January 2018) - revenue by service offering for fiscal 2016-2018 on the pre-ASC 606 basis, employees and attrition. — FY2018 · publ. March 2018 · source ↗
  5. ReportedOn the later basis, with commerce included, it was $947 million in fiscal 2017, $2,506 million in fiscal 2020 and $4,516 million in fiscal 2023, 8.3 times fiscal 2016 by fiscal 2026.
    Salesforce Form 10-K for fiscal 2019 (year ended 31 January 2019) - the MuleSoft acquisition, employees, attrition, RPO and revenue by service offering for fiscal 2017-2019 under ASC 606. — FY2019 · publ. March 2019 · source ↗
  6. ReportedOn the later basis, with commerce included, it was $947 million in fiscal 2017, $2,506 million in fiscal 2020 and $4,516 million in fiscal 2023, 8.3 times fiscal 2016 by fiscal 2026.
    Salesforce Form 10-K for fiscal 2022 (year ended 31 January 2022) - the Slack acquisition, the reclassification of Integration and Analytics into a Data line with fiscal 2020-2021 restated, employees, attrition and RPO. — FY2022 · publ. March 2022 · source ↗
  7. ReportedOn the later basis, with commerce included, it was $947 million in fiscal 2017, $2,506 million in fiscal 2020 and $4,516 million in fiscal 2023, 8.3 times fiscal 2016 by fiscal 2026.
    Salesforce Form 10-K for fiscal 2024 (year ended 31 January 2024) - the January 2023 restructuring plan, the renaming of Data to Integration and Analytics, attrition, employees and revenue by service offering for fiscal 2022-2024. — FY2024 · publ. March 2024 · source ↗
  8. Moat Explorer calcOn the later basis, with commerce included, it was $947 million in fiscal 2017, $2,506 million in fiscal 2020 and $4,516 million in fiscal 2023, 8.3 times fiscal 2016 by fiscal 2026.
    Moat Explorer calculation from Salesforce reported figures ($ millions unless stated; fiscal years end 31 January). Revenue growth: FY2016 6,667.2 / 5,373.6 - 1 = +24.1%; FY2021 21,252 / 17,098 - 1 = +24.3%; FY2022 26,492 / 21,252 - 1 = +24.7%; FY2023 31,352 / 26,492 - 1 = +18.3%; FY2024 34,857 / 31,352 - 1 = +11.2%; FY2025 37,895 / 34,857 - 1 = +8.7%; FY2026 41,525 / 37,895 - 1 = +9.6%; FY2026 without Informatica (41,525 - 399) / 37,895 - 1 = +8.5%; Q2 FY2027 reported 11,345 / 10,236 - 1 = +10.8%, without Informatica (11,345 - 456) / 10,236 - 1 = +6.4%; Q3 FY2027 guide 11% to 12% less slightly above 4 points of Informatica = roughly 7% to 8% organic; revenue increase FY2023 to FY2026 41,525 - 31,352 = 10,173, about $10.2bn; trailing twelve months to July 2026: revenue 41,525 - 20,065 + 22,478 = 43,938; net income 7,457 - 3,428 + 5,633 = 9,662; Q1 FY2027 revenue 22,478 - 11,345 = 11,133; fiscal 2027 revenue guidance midpoint (45,800 + 46,200) / 2 = 46,000 in February and (46,100 + 46,400) / 2 = 46,250 in August, 46,250 / 46,000 - 1 = +0.5%; FY2030 target 63,000: (63,000 / 46,400) ^ (1/3) - 1 = 10.7% a year; 46,400 times 1.107 = about 51,400 in FY2028. Revenue lines: Sales FY2016-FY2026 9,028 / 2,699.0 = 3.3 times, (3.34) ^ (1/10) - 1 = 12.8% a year; Sales growth FY2022 5,989 / 5,191 - 1 = 15.4%, FY2023 6,831 / 5,989 - 1 = 14.1%, FY2024 7,580 / 6,831 - 1 = 11.0%, FY2025 8,322 / 7,580 - 1 = 9.8%, FY2026 9,028 / 8,322 - 1 = 8.5%; Sales share of subscription revenue FY2016 2,699.0 / 6,205.6 = 43.5%, FY2026 9,028 / 39,388 = 22.9%, of total revenue 9,028 / 41,525 = 21.7%. Service FY2016-FY2026 9,818 / 1,817.8 = 5.4 times, 18.4% a year; Service growth FY2022 6,474 / 5,377 - 1 = 20.4%, FY2023 7,369 / 6,474 - 1 = 13.8%, FY2024 8,245 / 7,369 - 1 = 11.9%, FY2025 9,054 / 8,245 - 1 = 9.8%, FY2026 9,818 / 9,054 - 1 = 8.4%; Service share of revenue 9,818 / 41,525 = 23.6%. Platform, Slack and Other growth FY2018 1,913 / 1,433 - 1 = 33.5%, FY2019 2,854 / 1,913 - 1 = 49.2%, FY2021 3,324 / 2,787 - 1 = 19.3%, FY2022 4,509 / 3,324 - 1 = 35.6%, FY2023 5,967 / 4,509 - 1 = 32.3%, FY2024 6,611 / 5,967 - 1 = 10.8%, FY2025 7,247 / 6,611 - 1 = 9.6%, FY2026 8,882 / 7,247 - 1 = 22.6%, without Informatica (8,882 - 388) / 7,247 - 1 = 17.2%. Data 360, Headless Platform and Other Q2 FY2027 3,618 / 3,008 - 1 = 20.3%, without Informatica (3,618 - 440) / 3,008 - 1 = 5.7%. Marketing and Commerce FY2016-FY2026 5,428 / 654.1 = 8.3 times, 23.6% a year; growth FY2018 1,382 / 947 - 1 = 45.9%, FY2019 1,898 / 1,382 - 1 = 37.3%, FY2020 2,506 / 1,898 - 1 = 32.0%, FY2021 3,133 / 2,506 - 1 = 25.0%, FY2022 3,902 / 3,133 - 1 = 24.5%, FY2023 4,516 / 3,902 - 1 = 15.7%, FY2024 4,912 / 4,516 - 1 = 8.8%, FY2025 5,281 / 4,912 - 1 = 7.5%, FY2026 5,428 / 5,281 - 1 = 2.8%. Integration and Analytics growth FY2022 3,783 / 2,951 - 1 = 28.2%, FY2023 4,338 / 3,783 - 1 = 14.7%, FY2024 5,189 / 4,338 - 1 = 19.6%, FY2025 5,775 / 5,189 - 1 = 11.3%, FY2026 6,232 / 5,775 - 1 = 7.9%; FY2021-FY2026 (6,232 / 2,951) ^ (1/5) - 1 = 16.1% a year; share of subscription revenue FY2025 5,775 / 35,679 = 16.2%, FY2026 6,232 / 39,388 = 15.8%; growth less Sales growth FY2024 20% - 11% = +9 points, FY2026 8% - 8% = 0 points; revenue per dollar paid 6,232 / (6,425 + 14,845 = 21,270) = 0.29. Subscription and support growth FY2026 39,388 / 35,679 - 1 = 10.4%. Sales plus Service 9,028 + 9,818 = 18,846, 18,846 / 39,388 = 47.9% of subscription revenue. Sales growth FY2024-FY2026: 11.0%, 9.8%, 8.5%; Service 11.9%, 9.8%, 8.4%. Professional services: share of revenue FY2016 461.6 / 6,667.2 = 6.9%; FY2020 1,055 / 17,098 = 6.2%; FY2022 1,835 / 26,492 = 6.9%; FY2023 2,331 / 31,352 = 7.4%; FY2025 2,216 / 37,895 = 5.8%; FY2026 2,137 / 41,525 = 5.1%; Q2 FY2026 546 / 10,236 = 5.3%; Q2 FY2027 525 / 11,345 = 4.6%. Gross margin (revenue less cost, over revenue): FY2017 (638 - 617) / 638 = 3.3%, FY2018 (774 - 740) / 774 = 4.4%, FY2019 (869 - 847) / 869 = 2.5%, FY2020 (1,055 - 1,037) / 1,055 = 1.7%, FY2021 (1,276 - 1,284) / 1,276 = -0.6%, FY2022 (1,835 - 1,967) / 1,835 = -7.2%, FY2023 (2,331 - 2,539) / 2,331 = -8.9%, FY2024 (2,320 - 2,364) / 2,320 = -1.9%, FY2025 (2,216 - 2,445) / 2,216 = -10.3%, FY2026 (2,137 - 2,474) / 2,137 = -15.8%; Q2 FY2026 (546 - 597) / 546 = -9.3%; Q2 FY2027 (525 - 628) / 525 = -19.6%. Subscription and support gross margin: FY2020 (16,043 - 3,198) / 16,043 = 80.1%, FY2023 (29,021 - 5,821) / 29,021 = 79.9%, FY2025 (35,679 - 6,198) / 35,679 = 82.6%, FY2026 (39,388 - 6,796) / 39,388 = 82.7%; Q2 FY2026 (9,690 - 1,645) / 9,690 = 83.0%; Q2 FY2027 (10,820 - 2,021) / 10,820 = 81.3%. Margins and costs: GAAP operating margin = income from operations over revenue: FY2016 114.9 / 6,667.2 = 1.7%; FY2017 218 / 8,437 = 2.6%; FY2018 454 / 10,540 = 4.3%; FY2019 535 / 13,282 = 4.0%; FY2020 297 / 17,098 = 1.7%; FY2021 455 / 21,252 = 2.1%; FY2022 548 / 26,492 = 2.1%; FY2023 1,030 / 31,352 = 3.3%; FY2024 5,011 / 34,857 = 14.4%; FY2025 7,205 / 37,895 = 19.0%; FY2026 8,331 / 41,525 = 20.1%; operating income FY2026 over FY2023 8,331 / 1,030 = 8.1 times. Non-GAAP operating margin FY2015 574.1 / 5,373.6 = 10.7%; FY2016 830.0 / 6,667.2 = 12.4%. Marketing and sales over revenue FY2022 11,855 / 26,492 = 44.7%; FY2023 13,526 / 31,352 = 43.1%; FY2024 12,877 / 34,857 = 36.9%; FY2025 13,257 / 37,895 = 35.0%; FY2026 14,345 / 41,525 = 34.5%; marketing and sales growth FY2026 14,345 / 13,257 - 1 = 8.2%. Stock-based compensation over revenue FY2015 564.8 / 5,373.6 = 10.5%; FY2023 3,279 / 31,352 = 10.5%; FY2024 2,787 / 34,857 = 8.0%; FY2025 3,183 / 37,895 = 8.4%; FY2026 3,509 / 41,525 = 8.5%; unrecognised stock compensation after FY2028: 8,324 - 1,955 - 2,918 = 3,451. Amortisation of purchased intangibles FY2026 1,687 / 41,525 = 4.1%; FY2027 guide 4.4% times 46,250 = about 2,035. Restructuring FY2023-FY2026 828 + 988 + 461 + 586 = 2,863, about $2.9bn. Employees 83,334 - 76,453 = 6,881, 83,334 / 76,453 - 1 = +9.0%; revenue per employee FY2025 37,895 / 76,453 = about $496,000, FY2026 41,525 / 83,334 = about $498,000. Attrition dollars: 8% times 39,388 = about 3,151, about $3.2bn; bookings needed for 10% growth about 10% + 8% = 18% of the base; revenue kept each year at about 8% attrition 100% - 8% = about 92%. Cash: free cash flow FY2026 over FY2022 14,402 / 5,283 = 2.7 times; free cash flow over revenue FY2026 14,402 / 41,525 = 34.7%; capital expenditure over revenue 594 / 41,525 = 1.4%; non-cash charges FY2026 stock compensation 3,509 + amortisation 1,687 = 5,196, about $5.2bn; interest expense Q2 FY2027 473 / 67 = 7.1 times; unearned revenue over revenue 24,317 / 41,525 = 58.6%; unearned revenue growth FY2026 24,317 / 20,743 - 1 = +17.2%; 31 July 2026 18,787 / 16,555 - 1 = +13.5%; billings and other 45,099 / 39,635 - 1 = +13.8%; accounts receivable 14,339 / 11,945 - 1 = +20.0%. Net debt: 31 January 2025 debt 8,433 less cash 8,848 and marketable securities 5,184 = net cash of 5,599, about $5.6bn; 31 January 2026 (4,000 + 10,439 = 14,439) - 7,327 - 2,238 = 4,874, about $4.9bn; 31 July 2026 39,288 - 8,310 - 3,093 = 27,885, about $27.9bn. Contracted revenue: current RPO as a share of total RPO FY2018 9.6 / 20.6 = 46.6%; FY2019 11.9 / 25.7 = 46.3%; FY2020 15.0 / 30.8 = 48.7%; FY2021 18.0 / 36.1 = 49.9%; FY2022 22.0 / 43.7 = 50.3%; FY2023 24.6 / 48.6 = 50.6%; FY2024 27.6 / 56.9 = 48.5%; FY2025 30.2 / 63.4 = 47.6%; FY2026 35.1 / 72.4 = 48.5%; 31 July 2026 33.5 / 66.3 = 50.5%; acquired RPO FY2026 2.2 / 72.4 = 3.0%. Acquisitions and shares: MuleSoft 6,425 + Tableau 14,845 + Slack 27,068 + Informatica 9,636 = 57,974, about $58.0bn; MuleSoft goodwill 4,816 / 6,425 = 75.0%, other net assets 6,425 - 4,816 - 1,279 = 330; Tableau stock 14,552 / 14,845 = 98.0%, goodwill 10,806 / 14,845 = 72.8%; Slack goodwill 21,161 / 27,068 = 78.2%, Slack goodwill over total goodwill 21,161 / 57,941 = 36.5%; Informatica goodwill 5,257 / 9,636 = 54.6%, net of cash acquired 9,636 - 1,405 = 8,231, price over cloud ARR 9,636 / 1,100 = 8.8 times; Informatica Q2 FY2027 revenue 456 times 4 = about 1,824 a year. Goodwill over total assets FY2025 51,283 / 102,928 = 49.8%; FY2026 57,941 / 112,305 = 51.6%; goodwill plus intangibles (57,941 + 6,815 = 64,756) / 112,305 = 57.7%; goodwill FY2026 over FY2015 57,941 / 3,782.7 = 15.3 times. Shares outstanding at fiscal year end (SEC XBRL cover data): 650.6 million (FY2015), 730 (FY2018), 770 (FY2019), 893 (FY2020), 989 (FY2022), 929 (FY2026); 893 / 770 - 1 = +16.0%; 989 / 650.6 - 1 = +52.0%; 823 million on 20 August 2026. Pending Contentful 1.5 + Fin 3.6 = $5.1bn; with Informatica 9.6 + 3.6 + 1.5 = $14.7bn; if the two add 400 a year, 5,100 / 400 = 12.75 times. Valuation: market value 193,150 over trailing net income 9,662 = 20.0 times, over trailing revenue 43,938 = 4.40 times; fiscal 2027 EPS guidance midpoints GAAP (7.85 + 7.93) / 2 = 7.89 in February and (10.21 + 10.25) / 2 = 10.23 in August, +29.7%; adjusted (13.11 + 13.19) / 2 = 13.15 and (16.67 + 16.71) / 2 = 16.69, +26.9%; Q2 FY2027 EPS without investment gains 4.29 - 2.43 = 1.86 against 1.96. Geography and customers: United States share 0.93 times 27,193 / 41,525 = about 61%; growth FY2026 Americas 27,193 / 25,143 - 1 = 8.2%, Europe 10,017 / 8,891 - 1 = 12.7%, Asia Pacific 4,315 / 3,861 - 1 = 11.8%; Q2 FY2027 Europe 2,764 / 2,429 - 1 = 13.8%; Agentforce ARR 1,500 / 43,938 = 3.4% of trailing revenue. Additional: subscription and support growth FY2024 32,537 / 29,021 - 1 = 12.1%; Marketing and Commerce share of subscription revenue FY2023 4,516 / 29,021 = 15.6%, FY2024 4,912 / 32,537 = 15.1%, FY2025 5,281 / 35,679 = 14.8%, FY2026 5,428 / 39,388 = 13.8%; noncurrent RPO FY2026 37.3 / 33.2 - 1 = +12.3%, current RPO 35.1 / 30.2 - 1 = +16.2%; average repurchase price FY2023 4.0bn / 28 million = about $143, FY2024 7.7bn / 36 million = about $214, FY2025 7.8bn / 30 million = $260, FY2026 12.7bn / 50 million = $254; dividends over net income FY2026 1,587 / 7,457 = 21.3%; tangible equity 31 July 2026 38,378 - 59,250 - 6,142 = -27,014, about minus $27.0bn; fiscal 2027 free cash flow at 4% to 5% growth 14,402 times 1.04 = 14,978 to 14,402 times 1.05 = 15,122, about $15.0bn to $15.1bn. Competition (IDC estimates compiled by CX Foundation): Salesforce over the next-largest vendor 2021 23.8 / 5.4 (SAP) = 4.4 times, 2025 20.0 / 4.1 (Oracle) = 4.9 times; Salesforce 23.8% - 20.0% = 3.8 points lost 2021-2025; vendors outside the top five 65.4% - 56.6% = 8.8 points gained; Oracle, Microsoft, SAP and Adobe 5.1 + 5.3 + 5.4 + 3.8 = 19.6% in 2021 and 4.1 + 4.0 + 3.1 + 3.4 = 14.6% in 2025, 5.0 points lost; Salesforce over Oracle 20.0 / 4.1 = 4.9 times - growth, margins, costs, people, geography and market share. — FY2015-Q2 FY2027 · publ. October 2026 · source ↗
    Method: Arithmetic on figures reported in Salesforce Forms 10-K, 10-Q and results releases, SEC XBRL, the Investor Day presentation, stockanalysis market data and CX Foundation's compilation of IDC shares; each operand is stated in the source line.
  9. Moat Explorer calcGrowth ran at 45.9% in fiscal 2018 and 37.3% in fiscal 2019, then fell every year: 32.0%, 25.0%, 24.5%, 15.7%, 8.8%, 7.5% and 2.8%.
    Moat Explorer calculation from Salesforce reported figures ($ millions unless stated; fiscal years end 31 January). Revenue growth: FY2016 6,667.2 / 5,373.6 - 1 = +24.1%; FY2021 21,252 / 17,098 - 1 = +24.3%; FY2022 26,492 / 21,252 - 1 = +24.7%; FY2023 31,352 / 26,492 - 1 = +18.3%; FY2024 34,857 / 31,352 - 1 = +11.2%; FY2025 37,895 / 34,857 - 1 = +8.7%; FY2026 41,525 / 37,895 - 1 = +9.6%; FY2026 without Informatica (41,525 - 399) / 37,895 - 1 = +8.5%; Q2 FY2027 reported 11,345 / 10,236 - 1 = +10.8%, without Informatica (11,345 - 456) / 10,236 - 1 = +6.4%; Q3 FY2027 guide 11% to 12% less slightly above 4 points of Informatica = roughly 7% to 8% organic; revenue increase FY2023 to FY2026 41,525 - 31,352 = 10,173, about $10.2bn; trailing twelve months to July 2026: revenue 41,525 - 20,065 + 22,478 = 43,938; net income 7,457 - 3,428 + 5,633 = 9,662; Q1 FY2027 revenue 22,478 - 11,345 = 11,133; fiscal 2027 revenue guidance midpoint (45,800 + 46,200) / 2 = 46,000 in February and (46,100 + 46,400) / 2 = 46,250 in August, 46,250 / 46,000 - 1 = +0.5%; FY2030 target 63,000: (63,000 / 46,400) ^ (1/3) - 1 = 10.7% a year; 46,400 times 1.107 = about 51,400 in FY2028. Revenue lines: Sales FY2016-FY2026 9,028 / 2,699.0 = 3.3 times, (3.34) ^ (1/10) - 1 = 12.8% a year; Sales growth FY2022 5,989 / 5,191 - 1 = 15.4%, FY2023 6,831 / 5,989 - 1 = 14.1%, FY2024 7,580 / 6,831 - 1 = 11.0%, FY2025 8,322 / 7,580 - 1 = 9.8%, FY2026 9,028 / 8,322 - 1 = 8.5%; Sales share of subscription revenue FY2016 2,699.0 / 6,205.6 = 43.5%, FY2026 9,028 / 39,388 = 22.9%, of total revenue 9,028 / 41,525 = 21.7%. Service FY2016-FY2026 9,818 / 1,817.8 = 5.4 times, 18.4% a year; Service growth FY2022 6,474 / 5,377 - 1 = 20.4%, FY2023 7,369 / 6,474 - 1 = 13.8%, FY2024 8,245 / 7,369 - 1 = 11.9%, FY2025 9,054 / 8,245 - 1 = 9.8%, FY2026 9,818 / 9,054 - 1 = 8.4%; Service share of revenue 9,818 / 41,525 = 23.6%. Platform, Slack and Other growth FY2018 1,913 / 1,433 - 1 = 33.5%, FY2019 2,854 / 1,913 - 1 = 49.2%, FY2021 3,324 / 2,787 - 1 = 19.3%, FY2022 4,509 / 3,324 - 1 = 35.6%, FY2023 5,967 / 4,509 - 1 = 32.3%, FY2024 6,611 / 5,967 - 1 = 10.8%, FY2025 7,247 / 6,611 - 1 = 9.6%, FY2026 8,882 / 7,247 - 1 = 22.6%, without Informatica (8,882 - 388) / 7,247 - 1 = 17.2%. Data 360, Headless Platform and Other Q2 FY2027 3,618 / 3,008 - 1 = 20.3%, without Informatica (3,618 - 440) / 3,008 - 1 = 5.7%. Marketing and Commerce FY2016-FY2026 5,428 / 654.1 = 8.3 times, 23.6% a year; growth FY2018 1,382 / 947 - 1 = 45.9%, FY2019 1,898 / 1,382 - 1 = 37.3%, FY2020 2,506 / 1,898 - 1 = 32.0%, FY2021 3,133 / 2,506 - 1 = 25.0%, FY2022 3,902 / 3,133 - 1 = 24.5%, FY2023 4,516 / 3,902 - 1 = 15.7%, FY2024 4,912 / 4,516 - 1 = 8.8%, FY2025 5,281 / 4,912 - 1 = 7.5%, FY2026 5,428 / 5,281 - 1 = 2.8%. Integration and Analytics growth FY2022 3,783 / 2,951 - 1 = 28.2%, FY2023 4,338 / 3,783 - 1 = 14.7%, FY2024 5,189 / 4,338 - 1 = 19.6%, FY2025 5,775 / 5,189 - 1 = 11.3%, FY2026 6,232 / 5,775 - 1 = 7.9%; FY2021-FY2026 (6,232 / 2,951) ^ (1/5) - 1 = 16.1% a year; share of subscription revenue FY2025 5,775 / 35,679 = 16.2%, FY2026 6,232 / 39,388 = 15.8%; growth less Sales growth FY2024 20% - 11% = +9 points, FY2026 8% - 8% = 0 points; revenue per dollar paid 6,232 / (6,425 + 14,845 = 21,270) = 0.29. Subscription and support growth FY2026 39,388 / 35,679 - 1 = 10.4%. Sales plus Service 9,028 + 9,818 = 18,846, 18,846 / 39,388 = 47.9% of subscription revenue. Sales growth FY2024-FY2026: 11.0%, 9.8%, 8.5%; Service 11.9%, 9.8%, 8.4%. Professional services: share of revenue FY2016 461.6 / 6,667.2 = 6.9%; FY2020 1,055 / 17,098 = 6.2%; FY2022 1,835 / 26,492 = 6.9%; FY2023 2,331 / 31,352 = 7.4%; FY2025 2,216 / 37,895 = 5.8%; FY2026 2,137 / 41,525 = 5.1%; Q2 FY2026 546 / 10,236 = 5.3%; Q2 FY2027 525 / 11,345 = 4.6%. Gross margin (revenue less cost, over revenue): FY2017 (638 - 617) / 638 = 3.3%, FY2018 (774 - 740) / 774 = 4.4%, FY2019 (869 - 847) / 869 = 2.5%, FY2020 (1,055 - 1,037) / 1,055 = 1.7%, FY2021 (1,276 - 1,284) / 1,276 = -0.6%, FY2022 (1,835 - 1,967) / 1,835 = -7.2%, FY2023 (2,331 - 2,539) / 2,331 = -8.9%, FY2024 (2,320 - 2,364) / 2,320 = -1.9%, FY2025 (2,216 - 2,445) / 2,216 = -10.3%, FY2026 (2,137 - 2,474) / 2,137 = -15.8%; Q2 FY2026 (546 - 597) / 546 = -9.3%; Q2 FY2027 (525 - 628) / 525 = -19.6%. Subscription and support gross margin: FY2020 (16,043 - 3,198) / 16,043 = 80.1%, FY2023 (29,021 - 5,821) / 29,021 = 79.9%, FY2025 (35,679 - 6,198) / 35,679 = 82.6%, FY2026 (39,388 - 6,796) / 39,388 = 82.7%; Q2 FY2026 (9,690 - 1,645) / 9,690 = 83.0%; Q2 FY2027 (10,820 - 2,021) / 10,820 = 81.3%. Margins and costs: GAAP operating margin = income from operations over revenue: FY2016 114.9 / 6,667.2 = 1.7%; FY2017 218 / 8,437 = 2.6%; FY2018 454 / 10,540 = 4.3%; FY2019 535 / 13,282 = 4.0%; FY2020 297 / 17,098 = 1.7%; FY2021 455 / 21,252 = 2.1%; FY2022 548 / 26,492 = 2.1%; FY2023 1,030 / 31,352 = 3.3%; FY2024 5,011 / 34,857 = 14.4%; FY2025 7,205 / 37,895 = 19.0%; FY2026 8,331 / 41,525 = 20.1%; operating income FY2026 over FY2023 8,331 / 1,030 = 8.1 times. Non-GAAP operating margin FY2015 574.1 / 5,373.6 = 10.7%; FY2016 830.0 / 6,667.2 = 12.4%. Marketing and sales over revenue FY2022 11,855 / 26,492 = 44.7%; FY2023 13,526 / 31,352 = 43.1%; FY2024 12,877 / 34,857 = 36.9%; FY2025 13,257 / 37,895 = 35.0%; FY2026 14,345 / 41,525 = 34.5%; marketing and sales growth FY2026 14,345 / 13,257 - 1 = 8.2%. Stock-based compensation over revenue FY2015 564.8 / 5,373.6 = 10.5%; FY2023 3,279 / 31,352 = 10.5%; FY2024 2,787 / 34,857 = 8.0%; FY2025 3,183 / 37,895 = 8.4%; FY2026 3,509 / 41,525 = 8.5%; unrecognised stock compensation after FY2028: 8,324 - 1,955 - 2,918 = 3,451. Amortisation of purchased intangibles FY2026 1,687 / 41,525 = 4.1%; FY2027 guide 4.4% times 46,250 = about 2,035. Restructuring FY2023-FY2026 828 + 988 + 461 + 586 = 2,863, about $2.9bn. Employees 83,334 - 76,453 = 6,881, 83,334 / 76,453 - 1 = +9.0%; revenue per employee FY2025 37,895 / 76,453 = about $496,000, FY2026 41,525 / 83,334 = about $498,000. Attrition dollars: 8% times 39,388 = about 3,151, about $3.2bn; bookings needed for 10% growth about 10% + 8% = 18% of the base; revenue kept each year at about 8% attrition 100% - 8% = about 92%. Cash: free cash flow FY2026 over FY2022 14,402 / 5,283 = 2.7 times; free cash flow over revenue FY2026 14,402 / 41,525 = 34.7%; capital expenditure over revenue 594 / 41,525 = 1.4%; non-cash charges FY2026 stock compensation 3,509 + amortisation 1,687 = 5,196, about $5.2bn; interest expense Q2 FY2027 473 / 67 = 7.1 times; unearned revenue over revenue 24,317 / 41,525 = 58.6%; unearned revenue growth FY2026 24,317 / 20,743 - 1 = +17.2%; 31 July 2026 18,787 / 16,555 - 1 = +13.5%; billings and other 45,099 / 39,635 - 1 = +13.8%; accounts receivable 14,339 / 11,945 - 1 = +20.0%. Net debt: 31 January 2025 debt 8,433 less cash 8,848 and marketable securities 5,184 = net cash of 5,599, about $5.6bn; 31 January 2026 (4,000 + 10,439 = 14,439) - 7,327 - 2,238 = 4,874, about $4.9bn; 31 July 2026 39,288 - 8,310 - 3,093 = 27,885, about $27.9bn. Contracted revenue: current RPO as a share of total RPO FY2018 9.6 / 20.6 = 46.6%; FY2019 11.9 / 25.7 = 46.3%; FY2020 15.0 / 30.8 = 48.7%; FY2021 18.0 / 36.1 = 49.9%; FY2022 22.0 / 43.7 = 50.3%; FY2023 24.6 / 48.6 = 50.6%; FY2024 27.6 / 56.9 = 48.5%; FY2025 30.2 / 63.4 = 47.6%; FY2026 35.1 / 72.4 = 48.5%; 31 July 2026 33.5 / 66.3 = 50.5%; acquired RPO FY2026 2.2 / 72.4 = 3.0%. Acquisitions and shares: MuleSoft 6,425 + Tableau 14,845 + Slack 27,068 + Informatica 9,636 = 57,974, about $58.0bn; MuleSoft goodwill 4,816 / 6,425 = 75.0%, other net assets 6,425 - 4,816 - 1,279 = 330; Tableau stock 14,552 / 14,845 = 98.0%, goodwill 10,806 / 14,845 = 72.8%; Slack goodwill 21,161 / 27,068 = 78.2%, Slack goodwill over total goodwill 21,161 / 57,941 = 36.5%; Informatica goodwill 5,257 / 9,636 = 54.6%, net of cash acquired 9,636 - 1,405 = 8,231, price over cloud ARR 9,636 / 1,100 = 8.8 times; Informatica Q2 FY2027 revenue 456 times 4 = about 1,824 a year. Goodwill over total assets FY2025 51,283 / 102,928 = 49.8%; FY2026 57,941 / 112,305 = 51.6%; goodwill plus intangibles (57,941 + 6,815 = 64,756) / 112,305 = 57.7%; goodwill FY2026 over FY2015 57,941 / 3,782.7 = 15.3 times. Shares outstanding at fiscal year end (SEC XBRL cover data): 650.6 million (FY2015), 730 (FY2018), 770 (FY2019), 893 (FY2020), 989 (FY2022), 929 (FY2026); 893 / 770 - 1 = +16.0%; 989 / 650.6 - 1 = +52.0%; 823 million on 20 August 2026. Pending Contentful 1.5 + Fin 3.6 = $5.1bn; with Informatica 9.6 + 3.6 + 1.5 = $14.7bn; if the two add 400 a year, 5,100 / 400 = 12.75 times. Valuation: market value 193,150 over trailing net income 9,662 = 20.0 times, over trailing revenue 43,938 = 4.40 times; fiscal 2027 EPS guidance midpoints GAAP (7.85 + 7.93) / 2 = 7.89 in February and (10.21 + 10.25) / 2 = 10.23 in August, +29.7%; adjusted (13.11 + 13.19) / 2 = 13.15 and (16.67 + 16.71) / 2 = 16.69, +26.9%; Q2 FY2027 EPS without investment gains 4.29 - 2.43 = 1.86 against 1.96. Geography and customers: United States share 0.93 times 27,193 / 41,525 = about 61%; growth FY2026 Americas 27,193 / 25,143 - 1 = 8.2%, Europe 10,017 / 8,891 - 1 = 12.7%, Asia Pacific 4,315 / 3,861 - 1 = 11.8%; Q2 FY2027 Europe 2,764 / 2,429 - 1 = 13.8%; Agentforce ARR 1,500 / 43,938 = 3.4% of trailing revenue. Additional: subscription and support growth FY2024 32,537 / 29,021 - 1 = 12.1%; Marketing and Commerce share of subscription revenue FY2023 4,516 / 29,021 = 15.6%, FY2024 4,912 / 32,537 = 15.1%, FY2025 5,281 / 35,679 = 14.8%, FY2026 5,428 / 39,388 = 13.8%; noncurrent RPO FY2026 37.3 / 33.2 - 1 = +12.3%, current RPO 35.1 / 30.2 - 1 = +16.2%; average repurchase price FY2023 4.0bn / 28 million = about $143, FY2024 7.7bn / 36 million = about $214, FY2025 7.8bn / 30 million = $260, FY2026 12.7bn / 50 million = $254; dividends over net income FY2026 1,587 / 7,457 = 21.3%; tangible equity 31 July 2026 38,378 - 59,250 - 6,142 = -27,014, about minus $27.0bn; fiscal 2027 free cash flow at 4% to 5% growth 14,402 times 1.04 = 14,978 to 14,402 times 1.05 = 15,122, about $15.0bn to $15.1bn. Competition (IDC estimates compiled by CX Foundation): Salesforce over the next-largest vendor 2021 23.8 / 5.4 (SAP) = 4.4 times, 2025 20.0 / 4.1 (Oracle) = 4.9 times; Salesforce 23.8% - 20.0% = 3.8 points lost 2021-2025; vendors outside the top five 65.4% - 56.6% = 8.8 points gained; Oracle, Microsoft, SAP and Adobe 5.1 + 5.3 + 5.4 + 3.8 = 19.6% in 2021 and 4.1 + 4.0 + 3.1 + 3.4 = 14.6% in 2025, 5.0 points lost; Salesforce over Oracle 20.0 / 4.1 = 4.9 times - growth, margins, costs, people, geography and market share. — FY2015-Q2 FY2027 · publ. October 2026 · source ↗
    Method: Arithmetic on figures reported in Salesforce Forms 10-K, 10-Q and results releases, SEC XBRL, the Investor Day presentation, stockanalysis market data and CX Foundation's compilation of IDC shares; each operand is stated in the source line.
  10. Third-party estimateIDC has still ranked Salesforce first in marketing software for a seventh year.
    Salesforce news, 4 June 2026: IDC Worldwide Semiannual Software Tracker ranks Salesforce first in CRM for a 13th year with 20.0% in 2025; first in Sales for a 14th year, Customer Service a 13th, Marketing a seventh and Integration a fourth; second in Agent Build and Deploy with 17.5%. — 2025 · publ. 4 June 2026 · source ↗
  11. ReportedThe line's share of subscription revenue was 15% in fiscal 2025 and 14% in fiscal 2026.
    Salesforce Form 10-K for fiscal 2026 (year ended 31 January 2026) - revenue by service offering, geography and timing of recognition. — FY2026 · publ. 2 March 2026 · source ↗
  12. Moat Explorer calcThe line's share of subscription revenue has fallen each year since fiscal 2023, from 15.6% to 13.8%.
    Moat Explorer calculation from Salesforce reported figures ($ millions unless stated; fiscal years end 31 January). Revenue growth: FY2016 6,667.2 / 5,373.6 - 1 = +24.1%; FY2021 21,252 / 17,098 - 1 = +24.3%; FY2022 26,492 / 21,252 - 1 = +24.7%; FY2023 31,352 / 26,492 - 1 = +18.3%; FY2024 34,857 / 31,352 - 1 = +11.2%; FY2025 37,895 / 34,857 - 1 = +8.7%; FY2026 41,525 / 37,895 - 1 = +9.6%; FY2026 without Informatica (41,525 - 399) / 37,895 - 1 = +8.5%; Q2 FY2027 reported 11,345 / 10,236 - 1 = +10.8%, without Informatica (11,345 - 456) / 10,236 - 1 = +6.4%; Q3 FY2027 guide 11% to 12% less slightly above 4 points of Informatica = roughly 7% to 8% organic; revenue increase FY2023 to FY2026 41,525 - 31,352 = 10,173, about $10.2bn; trailing twelve months to July 2026: revenue 41,525 - 20,065 + 22,478 = 43,938; net income 7,457 - 3,428 + 5,633 = 9,662; Q1 FY2027 revenue 22,478 - 11,345 = 11,133; fiscal 2027 revenue guidance midpoint (45,800 + 46,200) / 2 = 46,000 in February and (46,100 + 46,400) / 2 = 46,250 in August, 46,250 / 46,000 - 1 = +0.5%; FY2030 target 63,000: (63,000 / 46,400) ^ (1/3) - 1 = 10.7% a year; 46,400 times 1.107 = about 51,400 in FY2028. Revenue lines: Sales FY2016-FY2026 9,028 / 2,699.0 = 3.3 times, (3.34) ^ (1/10) - 1 = 12.8% a year; Sales growth FY2022 5,989 / 5,191 - 1 = 15.4%, FY2023 6,831 / 5,989 - 1 = 14.1%, FY2024 7,580 / 6,831 - 1 = 11.0%, FY2025 8,322 / 7,580 - 1 = 9.8%, FY2026 9,028 / 8,322 - 1 = 8.5%; Sales share of subscription revenue FY2016 2,699.0 / 6,205.6 = 43.5%, FY2026 9,028 / 39,388 = 22.9%, of total revenue 9,028 / 41,525 = 21.7%. Service FY2016-FY2026 9,818 / 1,817.8 = 5.4 times, 18.4% a year; Service growth FY2022 6,474 / 5,377 - 1 = 20.4%, FY2023 7,369 / 6,474 - 1 = 13.8%, FY2024 8,245 / 7,369 - 1 = 11.9%, FY2025 9,054 / 8,245 - 1 = 9.8%, FY2026 9,818 / 9,054 - 1 = 8.4%; Service share of revenue 9,818 / 41,525 = 23.6%. Platform, Slack and Other growth FY2018 1,913 / 1,433 - 1 = 33.5%, FY2019 2,854 / 1,913 - 1 = 49.2%, FY2021 3,324 / 2,787 - 1 = 19.3%, FY2022 4,509 / 3,324 - 1 = 35.6%, FY2023 5,967 / 4,509 - 1 = 32.3%, FY2024 6,611 / 5,967 - 1 = 10.8%, FY2025 7,247 / 6,611 - 1 = 9.6%, FY2026 8,882 / 7,247 - 1 = 22.6%, without Informatica (8,882 - 388) / 7,247 - 1 = 17.2%. Data 360, Headless Platform and Other Q2 FY2027 3,618 / 3,008 - 1 = 20.3%, without Informatica (3,618 - 440) / 3,008 - 1 = 5.7%. Marketing and Commerce FY2016-FY2026 5,428 / 654.1 = 8.3 times, 23.6% a year; growth FY2018 1,382 / 947 - 1 = 45.9%, FY2019 1,898 / 1,382 - 1 = 37.3%, FY2020 2,506 / 1,898 - 1 = 32.0%, FY2021 3,133 / 2,506 - 1 = 25.0%, FY2022 3,902 / 3,133 - 1 = 24.5%, FY2023 4,516 / 3,902 - 1 = 15.7%, FY2024 4,912 / 4,516 - 1 = 8.8%, FY2025 5,281 / 4,912 - 1 = 7.5%, FY2026 5,428 / 5,281 - 1 = 2.8%. Integration and Analytics growth FY2022 3,783 / 2,951 - 1 = 28.2%, FY2023 4,338 / 3,783 - 1 = 14.7%, FY2024 5,189 / 4,338 - 1 = 19.6%, FY2025 5,775 / 5,189 - 1 = 11.3%, FY2026 6,232 / 5,775 - 1 = 7.9%; FY2021-FY2026 (6,232 / 2,951) ^ (1/5) - 1 = 16.1% a year; share of subscription revenue FY2025 5,775 / 35,679 = 16.2%, FY2026 6,232 / 39,388 = 15.8%; growth less Sales growth FY2024 20% - 11% = +9 points, FY2026 8% - 8% = 0 points; revenue per dollar paid 6,232 / (6,425 + 14,845 = 21,270) = 0.29. Subscription and support growth FY2026 39,388 / 35,679 - 1 = 10.4%. Sales plus Service 9,028 + 9,818 = 18,846, 18,846 / 39,388 = 47.9% of subscription revenue. Sales growth FY2024-FY2026: 11.0%, 9.8%, 8.5%; Service 11.9%, 9.8%, 8.4%. Professional services: share of revenue FY2016 461.6 / 6,667.2 = 6.9%; FY2020 1,055 / 17,098 = 6.2%; FY2022 1,835 / 26,492 = 6.9%; FY2023 2,331 / 31,352 = 7.4%; FY2025 2,216 / 37,895 = 5.8%; FY2026 2,137 / 41,525 = 5.1%; Q2 FY2026 546 / 10,236 = 5.3%; Q2 FY2027 525 / 11,345 = 4.6%. Gross margin (revenue less cost, over revenue): FY2017 (638 - 617) / 638 = 3.3%, FY2018 (774 - 740) / 774 = 4.4%, FY2019 (869 - 847) / 869 = 2.5%, FY2020 (1,055 - 1,037) / 1,055 = 1.7%, FY2021 (1,276 - 1,284) / 1,276 = -0.6%, FY2022 (1,835 - 1,967) / 1,835 = -7.2%, FY2023 (2,331 - 2,539) / 2,331 = -8.9%, FY2024 (2,320 - 2,364) / 2,320 = -1.9%, FY2025 (2,216 - 2,445) / 2,216 = -10.3%, FY2026 (2,137 - 2,474) / 2,137 = -15.8%; Q2 FY2026 (546 - 597) / 546 = -9.3%; Q2 FY2027 (525 - 628) / 525 = -19.6%. Subscription and support gross margin: FY2020 (16,043 - 3,198) / 16,043 = 80.1%, FY2023 (29,021 - 5,821) / 29,021 = 79.9%, FY2025 (35,679 - 6,198) / 35,679 = 82.6%, FY2026 (39,388 - 6,796) / 39,388 = 82.7%; Q2 FY2026 (9,690 - 1,645) / 9,690 = 83.0%; Q2 FY2027 (10,820 - 2,021) / 10,820 = 81.3%. Margins and costs: GAAP operating margin = income from operations over revenue: FY2016 114.9 / 6,667.2 = 1.7%; FY2017 218 / 8,437 = 2.6%; FY2018 454 / 10,540 = 4.3%; FY2019 535 / 13,282 = 4.0%; FY2020 297 / 17,098 = 1.7%; FY2021 455 / 21,252 = 2.1%; FY2022 548 / 26,492 = 2.1%; FY2023 1,030 / 31,352 = 3.3%; FY2024 5,011 / 34,857 = 14.4%; FY2025 7,205 / 37,895 = 19.0%; FY2026 8,331 / 41,525 = 20.1%; operating income FY2026 over FY2023 8,331 / 1,030 = 8.1 times. Non-GAAP operating margin FY2015 574.1 / 5,373.6 = 10.7%; FY2016 830.0 / 6,667.2 = 12.4%. Marketing and sales over revenue FY2022 11,855 / 26,492 = 44.7%; FY2023 13,526 / 31,352 = 43.1%; FY2024 12,877 / 34,857 = 36.9%; FY2025 13,257 / 37,895 = 35.0%; FY2026 14,345 / 41,525 = 34.5%; marketing and sales growth FY2026 14,345 / 13,257 - 1 = 8.2%. Stock-based compensation over revenue FY2015 564.8 / 5,373.6 = 10.5%; FY2023 3,279 / 31,352 = 10.5%; FY2024 2,787 / 34,857 = 8.0%; FY2025 3,183 / 37,895 = 8.4%; FY2026 3,509 / 41,525 = 8.5%; unrecognised stock compensation after FY2028: 8,324 - 1,955 - 2,918 = 3,451. Amortisation of purchased intangibles FY2026 1,687 / 41,525 = 4.1%; FY2027 guide 4.4% times 46,250 = about 2,035. Restructuring FY2023-FY2026 828 + 988 + 461 + 586 = 2,863, about $2.9bn. Employees 83,334 - 76,453 = 6,881, 83,334 / 76,453 - 1 = +9.0%; revenue per employee FY2025 37,895 / 76,453 = about $496,000, FY2026 41,525 / 83,334 = about $498,000. Attrition dollars: 8% times 39,388 = about 3,151, about $3.2bn; bookings needed for 10% growth about 10% + 8% = 18% of the base; revenue kept each year at about 8% attrition 100% - 8% = about 92%. Cash: free cash flow FY2026 over FY2022 14,402 / 5,283 = 2.7 times; free cash flow over revenue FY2026 14,402 / 41,525 = 34.7%; capital expenditure over revenue 594 / 41,525 = 1.4%; non-cash charges FY2026 stock compensation 3,509 + amortisation 1,687 = 5,196, about $5.2bn; interest expense Q2 FY2027 473 / 67 = 7.1 times; unearned revenue over revenue 24,317 / 41,525 = 58.6%; unearned revenue growth FY2026 24,317 / 20,743 - 1 = +17.2%; 31 July 2026 18,787 / 16,555 - 1 = +13.5%; billings and other 45,099 / 39,635 - 1 = +13.8%; accounts receivable 14,339 / 11,945 - 1 = +20.0%. Net debt: 31 January 2025 debt 8,433 less cash 8,848 and marketable securities 5,184 = net cash of 5,599, about $5.6bn; 31 January 2026 (4,000 + 10,439 = 14,439) - 7,327 - 2,238 = 4,874, about $4.9bn; 31 July 2026 39,288 - 8,310 - 3,093 = 27,885, about $27.9bn. Contracted revenue: current RPO as a share of total RPO FY2018 9.6 / 20.6 = 46.6%; FY2019 11.9 / 25.7 = 46.3%; FY2020 15.0 / 30.8 = 48.7%; FY2021 18.0 / 36.1 = 49.9%; FY2022 22.0 / 43.7 = 50.3%; FY2023 24.6 / 48.6 = 50.6%; FY2024 27.6 / 56.9 = 48.5%; FY2025 30.2 / 63.4 = 47.6%; FY2026 35.1 / 72.4 = 48.5%; 31 July 2026 33.5 / 66.3 = 50.5%; acquired RPO FY2026 2.2 / 72.4 = 3.0%. Acquisitions and shares: MuleSoft 6,425 + Tableau 14,845 + Slack 27,068 + Informatica 9,636 = 57,974, about $58.0bn; MuleSoft goodwill 4,816 / 6,425 = 75.0%, other net assets 6,425 - 4,816 - 1,279 = 330; Tableau stock 14,552 / 14,845 = 98.0%, goodwill 10,806 / 14,845 = 72.8%; Slack goodwill 21,161 / 27,068 = 78.2%, Slack goodwill over total goodwill 21,161 / 57,941 = 36.5%; Informatica goodwill 5,257 / 9,636 = 54.6%, net of cash acquired 9,636 - 1,405 = 8,231, price over cloud ARR 9,636 / 1,100 = 8.8 times; Informatica Q2 FY2027 revenue 456 times 4 = about 1,824 a year. Goodwill over total assets FY2025 51,283 / 102,928 = 49.8%; FY2026 57,941 / 112,305 = 51.6%; goodwill plus intangibles (57,941 + 6,815 = 64,756) / 112,305 = 57.7%; goodwill FY2026 over FY2015 57,941 / 3,782.7 = 15.3 times. Shares outstanding at fiscal year end (SEC XBRL cover data): 650.6 million (FY2015), 730 (FY2018), 770 (FY2019), 893 (FY2020), 989 (FY2022), 929 (FY2026); 893 / 770 - 1 = +16.0%; 989 / 650.6 - 1 = +52.0%; 823 million on 20 August 2026. Pending Contentful 1.5 + Fin 3.6 = $5.1bn; with Informatica 9.6 + 3.6 + 1.5 = $14.7bn; if the two add 400 a year, 5,100 / 400 = 12.75 times. Valuation: market value 193,150 over trailing net income 9,662 = 20.0 times, over trailing revenue 43,938 = 4.40 times; fiscal 2027 EPS guidance midpoints GAAP (7.85 + 7.93) / 2 = 7.89 in February and (10.21 + 10.25) / 2 = 10.23 in August, +29.7%; adjusted (13.11 + 13.19) / 2 = 13.15 and (16.67 + 16.71) / 2 = 16.69, +26.9%; Q2 FY2027 EPS without investment gains 4.29 - 2.43 = 1.86 against 1.96. Geography and customers: United States share 0.93 times 27,193 / 41,525 = about 61%; growth FY2026 Americas 27,193 / 25,143 - 1 = 8.2%, Europe 10,017 / 8,891 - 1 = 12.7%, Asia Pacific 4,315 / 3,861 - 1 = 11.8%; Q2 FY2027 Europe 2,764 / 2,429 - 1 = 13.8%; Agentforce ARR 1,500 / 43,938 = 3.4% of trailing revenue. Additional: subscription and support growth FY2024 32,537 / 29,021 - 1 = 12.1%; Marketing and Commerce share of subscription revenue FY2023 4,516 / 29,021 = 15.6%, FY2024 4,912 / 32,537 = 15.1%, FY2025 5,281 / 35,679 = 14.8%, FY2026 5,428 / 39,388 = 13.8%; noncurrent RPO FY2026 37.3 / 33.2 - 1 = +12.3%, current RPO 35.1 / 30.2 - 1 = +16.2%; average repurchase price FY2023 4.0bn / 28 million = about $143, FY2024 7.7bn / 36 million = about $214, FY2025 7.8bn / 30 million = $260, FY2026 12.7bn / 50 million = $254; dividends over net income FY2026 1,587 / 7,457 = 21.3%; tangible equity 31 July 2026 38,378 - 59,250 - 6,142 = -27,014, about minus $27.0bn; fiscal 2027 free cash flow at 4% to 5% growth 14,402 times 1.04 = 14,978 to 14,402 times 1.05 = 15,122, about $15.0bn to $15.1bn. Competition (IDC estimates compiled by CX Foundation): Salesforce over the next-largest vendor 2021 23.8 / 5.4 (SAP) = 4.4 times, 2025 20.0 / 4.1 (Oracle) = 4.9 times; Salesforce 23.8% - 20.0% = 3.8 points lost 2021-2025; vendors outside the top five 65.4% - 56.6% = 8.8 points gained; Oracle, Microsoft, SAP and Adobe 5.1 + 5.3 + 5.4 + 3.8 = 19.6% in 2021 and 4.1 + 4.0 + 3.1 + 3.4 = 14.6% in 2025, 5.0 points lost; Salesforce over Oracle 20.0 / 4.1 = 4.9 times - revenue lines, professional services and subscription margins. — FY2015-Q2 FY2027 · publ. October 2026 · source ↗
    Method: Arithmetic on figures reported in Salesforce Forms 10-K, 10-Q and results releases, SEC XBRL, the Investor Day presentation, stockanalysis market data and CX Foundation's compilation of IDC shares; each operand is stated in the source line.
  13. ReportedCommerce and marketing tools are sold to the same customers as Sales and Service, and the 10-K stresses the "Native integrations between our Commerce, Sales, Service and Marketing offerings"; the slowdown suggests those integrations have not been enough to keep the line growing with the rest.
    Salesforce Form 10-K for fiscal 2026 (year ended 31 January 2026) - revenue by service offering, geography and timing of recognition. — FY2026 · publ. 2 March 2026 · source ↗
  14. Third-party estimateIDC ranked Salesforce first in marketing software for a seventh year, so the slowdown is not obviously a loss of position.
    Salesforce news, 4 June 2026: IDC Worldwide Semiannual Software Tracker ranks Salesforce first in CRM for a 13th year with 20.0% in 2025; first in Sales for a 14th year, Customer Service a 13th, Marketing a seventh and Integration a fourth; second in Agent Build and Deploy with 17.5%. — 2025 · publ. 4 June 2026 · source ↗
  15. ReportedFrom the first quarter of fiscal 2027 Marketing and Commerce reports inside Agentforce Apps, so the line can no longer be watched on its own.
    Salesforce second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - revenue, margins, EPS, RPO, AI metrics, the two new revenue categories, balance sheet and fiscal 2027 guidance - highlights, income statement, revenue categories and margins. — Q2 FY2027 · publ. 26 August 2026 · source ↗
  16. ReportedIf Agentforce Apps, which grew 8% at constant currency in the second quarter, slows while Sales and Service hold, the weakness will be here.
    Salesforce second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - revenue, margins, EPS, RPO, AI metrics, the two new revenue categories, balance sheet and fiscal 2027 guidance - highlights, income statement, revenue categories and margins. — Q2 FY2027 · publ. 26 August 2026 · source ↗
Sources
Generated October 4, 2026