Salesforce Announces Fourth Quarter and Fiscal Year 2025 Results
Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its fourth quarter and full fiscal year ended January 31, 2025. FY25 Agentforce & Data Cloud $900 million Data Cloud &am...
Total Remaining Performance Obligation $63B, up 11% Y/Y; Operating Cash Flow $13B, up 28% Y/Y
SAN FRANCISCO: Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its fourth quarter and full fiscal year ended January 31, 2025.
FY25 Agentforce & Data Cloud
- $900 million Data Cloud & AI annual recurring revenue, up 120% year-over-year ("Y/Y")
- Since October, closed 5,000 Agentforce deals, including more than 3,000 paid
- Data Cloud surpassed 50 trillion records, which doubled Y/Y
- Nearly half of the Fortune 100 are both AI & Data Cloud customers, and all of our top 10 wins in Q4 included Data and AI
- On help.salesforce.com, Agentforce has handled 380,000 conversations, achieving an 84% resolution rate, with only 2% of the requests requiring human escalation
FY25 Results
- Fourth quarter revenue of $10.0 billion, up 8% Y/Y, up 9% in constant currency ("CC"), inclusive of subscription & support revenue of $9.5 billion, up 8% Y/Y, up 9% in CC
- Current remaining performance obligation of $30.2 billion, up 9% Y/Y, up 11% in CC
- Total remaining performance obligation of $63.4 billion, up 11% Y/Y
- FY25 revenue of $37.9 billion, up 9% both Y/Y & in CC, inclusive of subscription & support revenue of $35.7 billion, up 10% both Y/Y & in CC
- FY25 GAAP operating margin of 19.0% and non-GAAP operating margin of 33.0%
- FY25 operating cash flow of $13.1 billion, up 28% Y/Y, and free cash flow of $12.4 billion, up 31% Y/Y
- Returned $7.8 billion in the form of share repurchases and $1.5 billion in dividend payments to stockholders; total cash returned to stockholders of $9.3 billion in FY25
Full Year FY26 Guidance
- Initiates revenue guidance of $40.5 billion to $40.9 billion, up 7% - 8% both Y/Y & in CC
- Initiates subscription & support revenue growth guidance of approximately 8.5% Y/Y & approximately 9% in CC
- Initiates GAAP operating margin guidance of 21.6% and non-GAAP operating margin guidance of 34.0%
- Initiates operating cash flow growth guidance of approximately 10% to 11% Y/Y
“We had an incredible quarter and year, with strong performance across all our key metrics, including the highest cash flow in our company’s history and more than $60 billion in RPO,” said Marc Benioff, Chair and CEO, Salesforce. “No company is better positioned than Salesforce to lead customers through the digital labor revolution. With our deeply unified platform, seamlessly integrating our Customer 360 apps, Data Cloud and Agentforce, we’re already delivering unprecedented levels of productivity, efficiency and cost savings for thousands of companies.”
“We closed out the year with strong results and our relentless focus on profitable growth drove record-breaking revenue, margin, and cash flow, setting a strong foundation for the company into FY26,” said Amy Weaver, President and CFO. “Our capital return program continued to deliver incredible value to our shareholders, returning $21 billion since inception.”
Guidance
Our guidance includes GAAP and non-GAAP financial measures.
| Q1 FY26 Guidance |
| Full Year FY26 Guidance |
Total revenue | $9.71 - $9.76 billion |
| $40.5 - $40.9 billion |
Y/Y growth | 6% - 7% |
| 7% - 8% |
FX impact(1) | ($50M) Y/Y FX |
| ($150M) Y/Y FX |
CC growth(2) | 7% |
| 7% - 8% |
Subscription & support revenue growth (Y/Y)(3) | N/A |
| Approximately 8.5% |
CC growth(2)(3) | N/A |
| Approximately 9% |
GAAP operating margin | N/A |
| 21.6% |
Non-GAAP operating margin(2) | N/A |
| 34.0% |
GAAP diluted net income per share(2) | $1.49 - $1.51 |
| $6.95 - $7.03 |
Non-GAAP diluted net income per share(2) | $2.53 - $2.55 |
| $11.09 - $11.17 |
Operating cash flow growth (Y/Y) | N/A |
| Approximately 10% - 11% |
Current remaining performance obligation growth (Y/Y) | Approximately 10% |
| N/A |
FX Impact(4) | ($100M) Y/Y FX |
| N/A |
(1) Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates. | |||
(2) Non-GAAP CC revenue growth, non-GAAP operating margin and non-GAAP diluted net income per share are non-GAAP financial measures. See below for an explanation of non-GAAP financial measures. The Company's shares used in computing GAAP diluted net income per share guidance and non-GAAP diluted net income per share guidance excludes any impact to share count from potential Q1 - Q4 FY26 repurchase activity under our share repurchase program. | |||
(3) Subscription & support revenue excludes professional services revenue. | |||
(4) Current remaining performance obligation FX impact is calculated by taking the current period rates compared to the prior period ending rates. | |||
The following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year:
|
| Full Year FY26 Guidance |
GAAP operating margin(1) |
| 21.6% |
Plus |
|
|
Amortization of purchased intangibles(2) |
| 3.7% |
Stock-based compensation expense(2)(3) |
| 8.4% |
Restructuring(2)(3) |
| 0.3% |
Non-GAAP operating margin(1) |
| 34.0% |
(1) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. | ||
(2) The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY26. | ||
(3) The percentages shown in the restructuring line have been calculated based on charges associated with the Company's restructuring initiatives. Stock-based compensation expense excludes stock-based compensation expense related to the Company's restructuring initiatives, which is included in the restructuring line. | ||
The following is a per share reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share guidance for the next quarter and the full year:
| Fiscal 2026 | ||||||
| Q1 |
| FY26 | ||||
GAAP diluted net income per share range(1)(2) | $1.49 - $1.51 |
| $6.95 - $7.03 | ||||
Plus |
|
|
| ||||
Amortization of purchased intangibles | $ | 0.39 |
|
| $ | 1.54 |
|
Stock-based compensation expense | $ | 0.86 |
|
| $ | 3.47 |
|
Restructuring(3) | $ | 0.03 |
|
| $ | 0.13 |
|
Less |
|
|
| ||||
Income tax effects and adjustments(4) | $ | (0.24 | ) |
| $ | (1.00 | ) |
Non-GAAP diluted net income per share(2) | $2.53 - $2.55 |
| $11.09 - $11.17 | ||||
Shares used in computing basic net income per share (millions)(5) |
| 965 |
|
|
| 973 |
|
Shares used in computing diluted net income per share (millions)(5) |
| 980 |
|
|
| 985 |
|
(1) The Company's GAAP tax provision is expected to be approximately 23.5% for the three months ended April 30, 2025 and approximately 23.5% for the year ended January 31, 2026. The GAAP tax rates may fluctuate due to discrete tax items and related effects in conjunction with certain provisions in the Tax Cuts and Jobs Act, future acquisitions or other transactions. | |||||||
(2) The Company's projected GAAP and non-GAAP diluted net income per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses. The impact of future gains or losses from the Company’s strategic investment portfolio could be material. | |||||||
(3) The estimated impact to GAAP diluted net income per share is in connection with the Company's restructuring initiatives. | |||||||
(4) The Company’s non-GAAP tax provision uses a long-term projected tax rate of 22.0%, which reflects currently available information and could be subject to change. | |||||||
(5) The Company's shares used in computing GAAP net income per share guidance and non-GAAP net income per share guidance excludes any impact to share count from potential Q1 - Q4 FY26 repurchase activity under our share repurchase program. | |||||||
For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.
Management will provide further commentary around these guidance assumptions on its earnings call.
Product Releases and Enhancements
Three times a year Salesforce delivers new product releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments made over multiple years, designed to help customers drive cost savings, boost efficiency, and build trust.
To learn more about our newest innovations and product release highlights, including our latest Spring 2025 Product Release, visit: www.salesforce.com/releases.
Environmental, Social, and Governance (ESG) Strategy
To learn more about our latest initiatives and priorities, review our Stakeholder Impact Report: https://salesforce.com/stakeholder-impact-report.
Quarterly Conference Call
Salesforce plans to host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
About Salesforce
Salesforce helps organizations of any size reimagine their business for the world of AI. With Agentforce, Salesforce's trusted platform, organizations can bring humans together with agents to drive customer success—powered by AI, data, and action. Visit www.salesforce.com for more information.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about the Company's financial and operating results and guidance, which include, but are not limited to, expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, net income per share, operating cash flow growth, operating margin, expected revenue growth, expected foreign currency exchange rate impact, expected current remaining performance obligation growth, expected tax rates or provisions, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, strategic investments, expected restructuring expense or charges and expected timing of product releases and enhancements. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results or outcomes could differ materially and adversely from those expressed or implied by our forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements.
The risks and uncertainties referred to above include -- but are not limited to -- risks associated with:
- our ability to maintain sufficient security levels and service performance, avoid downtime and prevent, detect and remediate performance degradation and security breaches;
- our ability to secure sufficient data center capacity;
- our reliance on third-party infrastructure providers, including hardware, software and platform providers and the organizations responsible for the development and maintenance of the infrastructure of the Internet;
- uncertainties regarding AI technologies and their integration into our product offerings;
- the evolving landscape related to environmental, social and governance (“ESG”) matters;
- the effect of evolving government regulations, including those related to our industry and providing services on or accessing the Internet, and those addressing ESG matters, data privacy, cybersecurity, cross-border data transfers, government contracting and procurement, and import and export controls;
- current and potential litigation and regulatory investigations involving us or our industry;
- our ability to successfully expand or introduce new services and product features, including related to AI and Agentforce;
- our ability to successfully complete, integrate and realize the benefits from acquisitions or other strategic transactions;
- uncertainties regarding the pace of change and innovation and our ability to compete in the markets in which we participate;
- our ability to successfully execute our business strategy and our business plans, including efforts to expand internationally and related risks;
- our ability to predict and meet expectations regarding our operating results and cash flows, including revenue and remaining performance obligation, including as a result of the seasonal nature of our sales cycle and the variability in our results arising from the accounting for term license revenue products and some complex transactions;
- our ability to predict and limit customer attrition and costs related to those efforts;
- the demands on our personnel and infrastructure resulting from significant growth in our customer base and operations, including as a result of acquisitions;
- our real estate and office facilities strategy and related costs and uncertainties;
- the performance of our strategic investment portfolio, including fluctuations in the fair value of our investments;
- our ability to protect our intellectual property rights;
- our ability to maintain and enhance our brands;
- uncertainties regarding the valuation and potential availability of certain tax assets;
- the impact of new accounting pronouncements and tax laws;
- uncertainties affecting our ability to estimate our tax rate, including our tax obligations in connection with potential jurisdictional transfer of intellectual property;
- uncertainties regarding the effect of geopolitical events, inflationary pressures, market and macroeconomic volatility, financial institution instability, changes in monetary policy, foreign currency exchange rate and interest rate fluctuations, uncertainty regarding the imposition of and changes in trade policies, including trade wars, tariffs or other trade restrictions or the threat of such actions and climate change, natural disasters and actual or threatened public health emergencies on our workforce, business, and operating results;
- uncertainties regarding the impact of expensing stock options and other equity awards;
- the sufficiency of our capital resources, including our ability to execute our share repurchase program and declare future cash dividends;
- our ability to comply with our debt covenants and lease obligations; and
- uncertainties regarding impacts to our workforce and workplace culture, such as those arising from our current and future office environments or remote work policies or our ability to realize the expected benefits of the restructuring plan.
Further information on these and other factors that could affect the Company’s actual results or outcomes is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings it makes with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Financials section of the Company’s website at http://investor.salesforce.com/financials/.
Salesforce, Inc. assumes no obligation and does not intend to revise or update publicly any forward-looking statements for any reason, except as required by law.
© 2025 Salesforce, Inc. All rights reserved. Salesforce and other marks are trademarks of Salesforce, Inc. Other brands featured herein may be trademarks of their respective owners.
Salesforce, Inc. | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
(in millions, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended January 31, |
| Fiscal Year Ended January 31, | |||||||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 | ||||||||
Revenues: |
|
|
|
|
|
|
| ||||||||
Subscription and support | $ | 9,451 |
|
| $ | 8,748 |
|
| $ | 35,679 |
|
| $ | 32,537 |
|
Professional services and other |
| 542 |
|
|
| 539 |
|
|
| 2,216 |
|
|
| 2,320 |
|
Total revenues |
| 9,993 |
|
|
| 9,287 |
|
|
| 37,895 |
|
|
| 34,857 |
|
Cost of revenues (1)(2): |
|
|
|
|
|
|
| ||||||||
Subscription and support |
| 1,581 |
|
|
| 1,581 |
|
|
| 6,198 |
|
|
| 6,177 |
|
Professional services and other |
| 636 |
|
|
| 567 |
|
|
| 2,445 |
|
|
| 2,364 |
|
Total cost of revenues |
| 2,217 |
|
|
| 2,148 |
|
|
| 8,643 |
|
|
| 8,541 |
|
Gross profit |
| 7,776 |
|
|
| 7,139 |
|
|
| 29,252 |
|
|
| 26,316 |
|
Operating expenses (1)(2): |
|
|
|
|
|
|
| ||||||||
Research and development |
| 1,420 |
|
|
| 1,275 |
|
|
| 5,493 |
|
|
| 4,906 |
|
Sales and marketing |
| 3,471 |
|
|
| 3,437 |
|
|
| 13,257 |
|
|
| 12,877 |
|
General and administrative |
| 767 |
|
|
| 632 |
|
|
| 2,836 |
|
|
| 2,534 |
|
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