IBM vs Salesforce

IBM vs Salesforce: this page compares the two companies' business models, financial performance, and market context in a clear, accessible way, outlining how each organisation approaches growth, customers, and value creation for readers. Educational content, not financial advice.

IBM vs Salesforce: this page compares the two companies' business models, financial performance, and market context in a clear, accessible way, outlining how each organisation approaches growth, custo...

Comparison Snapshot

Key Financial Metrics

IBM

Metric

CRM

$294.19B

Market Cap

$197.53B

-6.61%

Potential Profit

54.31%

Buy

Analyst Rating

Buy

Why It's Moving

IBM Stock Surges on Stellar Q4 Earnings Beat and Robust 2026 Outlook Fueled by AI Momentum.

Software segment soared 14% with Automation up 18% and Data up 22%, underscoring explosive AI-driven demand.
Infrastructure revenue jumped 21% on strong adoption of next-gen mainframes, powering the earnings beat.
Pending $11B Confluent acquisition set to enhance real-time data streaming for AI, alongside analyst upgrades and steady $1.68 quarterly dividend.

Sentiment:

🐃Bullish

Salesforce's AI Momentum Sparks Hopes for CRM Rebound Despite Recent Slump.

Agentforce generated $540M in recurring revenues in Q3 FY26, surging 330% year-over-year, with over 50% from existing clients highlighting strong cross-sell success.
AI tools drove $1.4B in combined recurring revenues, up 114%, underscoring Salesforce's edge in the booming enterprise AI ecosystem.
Wall Street consensus sets a $327 median price target with 'Moderate Buy' rating, backed by institutional accumulation and a confirmed price bottom near $225.

Sentiment:

🐃Bullish

IBM Stock Surges on Stellar Q4 Earnings Beat and Robust 2026 Outlook Fueled by AI Momentum.

Software segment soared 14% with Automation up 18% and Data up 22%, underscoring explosive AI-driven demand.
Infrastructure revenue jumped 21% on strong adoption of next-gen mainframes, powering the earnings beat.
Pending $11B Confluent acquisition set to enhance real-time data streaming for AI, alongside analyst upgrades and steady $1.68 quarterly dividend.

Sentiment:

🐃Bullish

Salesforce's AI Momentum Sparks Hopes for CRM Rebound Despite Recent Slump.

Agentforce generated $540M in recurring revenues in Q3 FY26, surging 330% year-over-year, with over 50% from existing clients highlighting strong cross-sell success.
AI tools drove $1.4B in combined recurring revenues, up 114%, underscoring Salesforce's edge in the booming enterprise AI ecosystem.
Wall Street consensus sets a $327 median price target with 'Moderate Buy' rating, backed by institutional accumulation and a confirmed price bottom near $225.

Sentiment:

🐃Bullish

Investment Analysis

IBM

Pros

IBM reported a 9% year-over-year revenue growth and beat consensus earnings estimates in the latest quarter.
It holds a strong return on equity of 28.86%, reflecting efficient profitability relative to equity.
IBM has a robust financial position with consistent free cash flow and a 55-year dividend payment streak.

Considerations

The price-to-earnings ratio of 37.7x significantly exceeds the sector average, indicating a potentially high valuation.
Return on equity has declined about 29% from its ten-year historical average, suggesting some profit efficiency challenges.
IBM faces intense competition in hybrid cloud and AI where rapid innovation is critical, posing execution risks.

Salesforce

CRM

Pros

Salesforce targets long-term revenue exceeding $60 billion by fiscal 2030 with over 10% CAGR growth planned.
The company aims for a combined subscription and operating margin growth reaching 50% by fiscal 2030.
Salesforce’s order management platform is highly rated for omni-channel flexibility and integration ease.

Considerations

Salesforce shares have experienced a year-to-date performance decline nearing 21%, reflecting recent market challenges.
The business remains exposed to macroeconomic cyclicality impacting enterprise software spending patterns.
Profitability metrics remain pressured as the company prioritizes aggressive growth and market share expansion.

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