SalesforceCRM -1.66%77 Gross Margin % is 76.92% as of Apr. 2026, which is 4% above its 10-year median of 74.22. GuruFocus rates CRM with a GF Score™ of 77/100 and a GF Value™ of $323.18 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,683 Software companies, Salesforce ranks better than 86.77% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Salesforce's Gross Profit for the
three
months ended in Apr. 2026 was $8,563 Mil. Salesforce's Revenue for the
three
months ended in Apr. 2026 was $11,133 Mil. Therefore, Salesforce's Gross Margin % for the quarter that ended in Apr. 2026 was 76.92%.
The historical rank and industry rank for Salesforce's Gross Margin % or its related term are showing as below:
CRM'
s Gross Margin % Range Over the Past 10 Years
Min: 73.34 Med: 74.22 Max: 77.68
Current: 77.64
During the past 13 years, the highestGross Margin % of Salesforce was 77.68%. The lowest was 73.34%. And the median was 74.22%.
CRM's Gross Margin % is ranked better than 86.77% of 2683
companies
in the Software industry
Industry Median: 40.45
vs CRM: 77.64
Salesforce had a gross margin of 76.92% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Salesforce was 1.10% per year.
Salesforce (NYSE:CRM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Salesforce had a gross margin of 76.92% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Salesforce Gross Margin % Related Terms
Salesforce Gross Margin % Historical Data
* Premium members only.
The historical data trend for Salesforce's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Salesforce's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Salesforce Gross Margin % vs Software Industry
For the Software industry and Technology sector, Salesforce's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Salesforce's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Salesforce (CRM) has a Gross Margin % of 76.92% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Salesforce and its competitors. This is near median its historical median of 74.22. Over the past decade, Salesforce's Gross Margin % has ranged from 73.34 to 77.68. According to the industry distribution chart, Salesforce ranks #355 out of 2683 companies in the Software industry, placing it in the top 13.2%.
Is Salesforce's Gross Margin % too high?
Salesforce's current Gross Margin % of 76.92% is near median its 10-year median of 74.22. Over the past 10 years, this metric has ranged from a low of 73.34 to a high of 77.68. The Software industry median Gross Margin % is 40.45. Salesforce's value of 76.92% is 90.2% above this industry median. Based on the distribution chart, Salesforce ranks #355 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Salesforce has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Salesforce's Gross Margin % compare to SHOP and UBER?
According to the Software industry distribution chart, Salesforce ranks #355 out of 2683 companies for Gross Margin %. This places Salesforce in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Salesforce's value of 76.92% is 90.2% above this benchmark. Historically, Salesforce's own Gross Margin % has ranged from 73.34 to 77.68 over the past decade. While the company's 10-year median is 74.22 vs. the industry median of 40.45, Salesforce has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Salesforce's current Gross Margin % of 76.92% is 90.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Salesforce and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salesforce's current Gross Margin % is 76.92%, which is near median its own 10-year median of 74.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salesforce stock overvalued right now?
Based on GuruFocus' analysis, Salesforce (CRM) is currently considered Significantly Undervalued. The stock's GF Value™ is $323.18, compared to a current price of $150.23 — trading 53.5% below its estimated fair value. The current Gross Margin % is 76.92%, which is near median its 10-year median of 74.22 and 90.2% above the Software industry median of 40.45. Salesforce's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Salesforce (CRM), the current Gross Margin % is 76.92% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Salesforce (CRM) Overvalued in 2026?
Based on GuruFocus' analysis, Salesforce stock appears to be undervalued.
The current stock price of $150.23 is trading 53.5% below its estimated GF Value™ of $323.18.
GuruFocus considers Salesforce to be Significantly Undervalued.
Key valuation signals for CRM:
Gross Margin %: 76.92% (near median its 10-year median of 74.22)
GF Value™: $323.18 vs. price of $150.23 (53.5% below fair value)
Industry Position: 90.2% above the Software median (#355 of 2683)
No single metric tells the full story. See the CRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Salesforce provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
77GF Score
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