Salesforce shares trade at 20.4 times earnings, below the 22.6 median for S&P 500 companies, while revenue grew 11.2% over the last twelve months against an 8.5% median. The operating margin of 21.5% is above the 18.5% median, but the article says part of the 22.0% net margin came from outside day-to-day operations, most visibly in fiscal Q2 2027 when net margin reached 31.1%. Revenue growth has slowed from 24.6% in the twelve months to July 2022, while Slack and Agentforce grew 22.6% in fiscal 2026. Management raised its fiscal 2027 sales growth guide to a midpoint of 11.5%, with about two-thirds of the increase tied to two acquisitions, and total debt more than tripled in the year to July 31, 2026. The article says the current price assumes Salesforce keeps its 11.2% growth, while management expects operating and free cash flow to rise only 4% to 5% in fiscal 2027.
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