Revenue Growth (TTM)
10.98%
FCF Margin (TTM)
34.23%
Rule of 40 (TTM)
45.21%
Status
Passes
Rule of 40 by fiscal year for Salesforce (CRM)
Pass threshold: 40.00%
Salesforce (CRM) Rule of 40 components by year
| Status | ||||
|---|---|---|---|---|
| 2026 | 9.58% | 34.68% | 44.26% | Pass |
| 2025 | 8.72% | 32.81% | 41.53% | Pass |
| 2024 | 11.18% | 27.25% | 38.43% | Below |
| 2023 | 18.35% | 20.14% | 38.48% | Below |
| 2022 | 24.66% | 19.94% | 44.60% | Pass |
| 2021 | 24.30% | 19.25% | 43.55% | Pass |
| 2020 | 28.73% | 21.57% | 50.30% | Pass |
| 2019 | 26.74% | 21.10% | 47.84% | Pass |
| 2018 | 24.88% | 21.03% | 45.91% | Pass |
| 2017 | 25.87% | 20.24% | 46.11% | Pass |
| 2016 | 24.07% | 14.43% | 38.51% | Below |
| 2015 | 32.00% | 14.08% | 46.08% | Pass |
| 2014 | 33.47% | 14.16% | 47.62% | Pass |
| 2013 | 34.58% | 18.27% | 52.84% | Pass |
| 2012 | 36.77% | 18.54% | 55.31% | Pass |
| 2011 | 26.93% | 5.45% | 32.37% | Below |
| 2010 | 21.25% | 16.62% | 37.87% | Below |
| 2009 | 43.82% | 15.65% | 59.47% | Pass |
| 2008 | 50.61% | 21.47% | 72.08% | Pass |
| 2007 | 60.43% | 17.92% | 78.35% | Pass |
| 2006 | 75.68% | 23.38% | 99.07% | Pass |
| 2005 | 83.68% | 29.24% | 112.92% | Pass |
| 2004 | 88.31% | 19.65% | 107.96% | Pass |
| 2003 | 127.55% | 6.26% | 133.80% | Pass |
| 2002 | 312.31% | — | — | — |
| 2001 | — | — | — | — |
- 202644.26%
- 202541.53%
- 202438.43%
- 202338.48%
- 202244.60%
- 202143.55%
- 202050.30%
- 201947.84%
- 201845.91%
- 201746.11%
- 201638.51%
- 201546.08%
- 201447.62%
- 201352.84%
- 201255.31%
- 201132.37%
- 201037.87%
- 200959.47%
- 200872.08%
- 200778.35%
- 200699.07%
- 2005112.92%
- 2004107.96%
- 2003133.80%
- 2002—
- 2001—
About the Rule of 40 at Salesforce (CRM)
The Rule of 40 is a quick health check for software businesses: a company's revenue growth rate plus its free cash flow margin should add up to at least 40.00%. The idea is that growth and profitability are a trade-off — a company growing quickly can afford thinner margins, while a slower grower is expected to convert more revenue into cash. Clearing 40.00% signals a healthy balance between the two.
On a trailing-twelve-month basis, Salesforce (CRM) combines revenue growth of 10.98% with a free cash flow margin of 34.23% for a Rule of 40 score of 45.21%. That clears the 40.00% bar, so on the latest data the company passes the Rule of 40.
In fiscal 2026, CRM grew revenue 9.58% and posted a free cash flow margin of 34.68%, a full-year Rule of 40 score of 44.26%. The trailing-twelve-month snapshot above can differ from the latest fiscal year because it rolls in the most recent quarters.
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