Key Points

Salesforce holds a strong spot in enterprise software via its unified cloud and AI platforms.
Dell Technologies shifts focus to AI infrastructure and optimized data center hardware for expansion.
Which of these tech leaders offers stronger portfolio potential heading into 2026?
10 stocks we like better than Salesforce ›

Investors weighing Salesforce (NYSE:CRM) against Dell Technologies (NYSE:DELL) compare SaaS models with physical infrastructure needs amid rising AI and cloud adoption.

Salesforce centers on CRM tools through digital platforms, while Dell supplies hardware and servers for contemporary computing demands. Both adapt strategies to secure more enterprise budgets.

The case for Salesforce

Salesforce ranks among leading tech stocks due to its CRM dominance. It delivers cloud software and AI features that unify sales, marketing, and service operations. A key step came with the June 2026 purchase of Fin for about $3.6 billion to boost autonomous agent functions.

Revenue for fiscal 2026 hit $41.5 billion, up nearly 10 percent from the prior period. This growth supported net income of $7.5 billion, yielding an 18 percent net margin that shows solid conversion of revenue to profit.

The January 2026 balance sheet listed a debt-to-equity ratio of 0.3x. The current ratio stood at 0.8x for short-term coverage. Free cash flow totaled $14.4 billion. Stock-based compensation made up 23.4 percent of operating cash flow, boosting reported figures as a non-cash item.

The case for Dell Technologies

Dell offers broad tech solutions spanning personal devices, storage, and AI infrastructure for global commercial and consumer clients. It adjusted its North American distribution by ending an enterprise partnership with Arrow Enterprise Computing Solutions.

Fiscal 2026 revenue reached $113.5 billion, rising nearly 19 percent year over year. Net income came in at $5.9 billion, producing a 5 percent net margin.

The January 2026 balance sheet showed a current ratio of 0.9x. Debt-to-equity registered at -12.8x due to heavy share buybacks that cut outstanding shares. Free cash flow totaled $8.6 billion after operations and capital spending.

Risk profile comparison

Salesforce contends with rivals including Microsoft and newer AI-focused entrants. It pursues an antitrust case against Microsoft over bundled tools and handles a class action probe plus cloud security risks.

Dell depends on Asian suppliers and contract makers, exposing it to supply issues and hardware competition. It also manages litigation from XTX Markets and supply chain cyber risks.

Valuation comparison

Salesforce trades at a lower earnings multiple than Dell, yet Dell shows better value on a sales basis.

Metric	Salesforce	Dell Technologies	Sector Benchmark
Forward P/E	12.1x	21.7x	33.8x
P/S ratio	3.4x	2.3x	n/a

Sector benchmark draws from the SPDR XLK sector ETF. Valuation data comes from Financial Modeling Prep and may vary by provider.

Which stock would I buy in 2026?

AI shaped share performance for both firms this year, yet in opposing directions. Concerns over AI eroding Salesforce CRM revenue triggered a drop to a 52-week low of $146.32 in June. At the same time, demand for AI hardware lifted Dell shares to a 52-week high of $469.47 that month.

Dell appears the stronger pick given record first-quarter revenue of $43.8 billion ended May 1, up 88 percent year over year. Strong sales help explain its low P/S ratio.

Yet Salesforce shows no clear AI drag. Its first-quarter revenue ended April 30 climbed 13 percent to $11.1 billion. The firm countered with new CRM AI tools and the Fin acquisition.

Wall Street pressure leaves Salesforce the better buy. Its modest forward earnings multiple signals an attractive price, and renewed investor confidence in its AI resilience should support gains.

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Robert Izquierdo has positions in Dell Technologies, Microsoft, and Salesforce. The Motley Fool has positions in and recommends Microsoft and Salesforce. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.