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Jan 31
Salesforce Q4 2025 Earnings Report
Salesforce reported strong Q4 FY25 performance, achieving record revenue and profitability.
Key Takeaways
Salesforce delivered solid financial results in Q4 FY25, reporting $10.0 billion in revenue, an 8% year-over-year increase. Non-GAAP EPS reached $2.78, reflecting strong operational execution. The company achieved a GAAP operating margin of 18.2% and a non-GAAP operating margin of 33.1%. Net income totaled $1.71 billion, and free cash flow stood at $3.82 billion. The company remains well-positioned for FY26 with continued growth in Data Cloud and AI-related offerings.
Revenue grew 8% YoY to $10.0 billion, driven by subscription and support revenue.
Non-GAAP EPS increased to $2.78, outperforming expectations.
Operating cash flow reached $3.97 billion, marking a 17% YoY increase.
Data Cloud & AI annual recurring revenue surged 120% YoY to $900 million.
Salesforce
Salesforce
Salesforce Revenue by Segment
Salesforce Revenue by Geographic Location
Revenue by Segment
Sales Revenue
CapyFin.comService Revenue
CapyFin.comPlatform and Other Revenue
CapyFin.comMarketing and Commerce Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Salesforce projects FY26 revenue between $40.5B and $40.9B, reflecting 7-8% YoY growth. The company expects a non-GAAP operating margin of 34.0% and free cash flow growth of 10-11% YoY.
Positive Outlook
- Revenue forecast of $40.5B to $40.9B, up 7-8% YoY.
- Subscription & support revenue expected to grow 8.5% YoY.
- Non-GAAP operating margin projected at 34.0%.
- Operating cash flow growth expected to be 10-11% YoY.
- AI & Data Cloud adoption continues to expand among Fortune 100 companies.
Challenges Ahead
- FX impact expected to reduce revenue by $150 million for FY26.
- Macroeconomic conditions could impact enterprise software spending.
- Stock-based compensation remains a significant expense.
- Competitive pressure in AI-driven CRM solutions is increasing.
- Regulatory and geopolitical uncertainties may affect international growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income