Who Optimizes SG&A Costs Better? Salesforce, Inc. or HP Inc.

Optimizing SG&A: A Tale of Two Tech Giants

In the ever-evolving tech industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Salesforce, Inc. and HP Inc. have taken distinct paths in optimizing these costs. From 2014 to 2024, Salesforce's SG&A expenses surged by over 450%, reflecting its aggressive growth strategy. In contrast, HP Inc. maintained a more stable trajectory, with a modest 47% increase over the same period.

Salesforce's rise in SG&A expenses, peaking at $15.4 billion in 2024, underscores its commitment to expanding its market presence. Meanwhile, HP Inc.'s expenses, hovering around $5.7 billion, highlight its focus on operational efficiency. This divergence in strategy offers a fascinating glimpse into how two industry leaders navigate the balance between growth and cost management. As the tech landscape continues to shift, these insights provide valuable lessons for businesses aiming to optimize their SG&A costs.