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
FY25 Results
Full Year FY26 Guidance
“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:
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 |
|
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related newsLast NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readH2O.ai Recognized on CRN’s 2025 AI 100 List for Second Consecutive YearH2O.ai, the world’s leading agentic AI, today announced that it was honored by CRN®, a brand of The Channel Company, with a spot on the 2025 AI 100 list.… HireRight Acquires ClearChecks to Build Market-Leading Background Screening…HireRight, a leading provider of global background screening services and workforce solutions, has completed the acquisition of ClearChecks, a background… Fiserv to Release First Quarter Earnings Results on April 24, 2025Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology solutions, will announce its first quarter financial… Persefoni Pro Wins Innovation of the Year at the 2025 CleanTech Breakthrough…Persefoni AI, Inc., a leading sustainability management SaaS and AI platform, has won ‘Overall Climate Technology Innovation of the Year’ at the 2025… G11 Media Networks |