Salesforce Q4 2025 Earnings Report
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 Revenue
Salesforce EPS
Salesforce Revenue by Segment
Salesforce Revenue by Geographic Location
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