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Salesforce, Inc. (CRM)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY25 revenue reached $10.0B (up 8% Y/Y; 9% CC) and non-GAAP EPS was $2.78; revenue landed within prior guidance range and non-GAAP EPS was above guidance, a notable beat driven by disciplined expenses and early renewals in cRPO .
  • RPO hit a record $63.4B (+11% Y/Y) and cRPO rose to $30.2B (+9% nominal, +11% CC), signaling durable demand and strong backlog conversion potential into FY26 .
  • Management initiated FY26 guidance: revenue $40.5–$40.9B (+7–8%), non-GAAP operating margin 34.0%, GAAP margin 21.6%, and operating cash flow growth ~10–11%, reflecting continued margin progression despite intentional AI investments .
  • AI momentum accelerated: $900M Data Cloud & AI ARR (+120% Y/Y), 5,000 Agentforce deals since October (3,000+ paid), and all top 10 Q4 wins included data and AI—positioning CRM as a leader in the “digital labor” cycle .
  • FX turned into a visible headwind; APAC remained robust while parts of EMEA stayed constrained. Company flagged professional services as a growth headwind and modest Agentforce revenue contribution in FY26, with larger impact expected in FY27 .

What Went Well and What Went Wrong

What Went Well

  • “We closed out the year with strong results…record-breaking revenue, margin, and cash flow” with FY25 OCF $13.1B (+28% Y/Y) and FCF $12.4B (+31% Y/Y) .
  • AI/Data Cloud momentum: “We ended the year with $900 million in Data Cloud and AI ARR, growing nearly 120% year-over-year,” and 5,000 Agentforce deals since October (3,000+ paid) .
  • Strategic AI positioning: “No company is better positioned than Salesforce to lead customers through the digital labor revolution…integrating Customer 360 apps, Data Cloud and Agentforce” .

What Went Wrong

  • FX headwinds increased: Q4 nominal growth included “approximately $75 million of incremental FX headwinds since our last guidance,” and cRPO faced a $300M FX headwind (11% CC vs 9% nominal) .
  • Segments with tough compares: MuleSoft/Tableau faced difficult prior-year license comps; management expects weakness in marketing & commerce and slower growth in the expiration base in FY26 .
  • Professional services to weigh on growth: “We continue to expect our professional services business to be a headwind to growth this year,” with more reliance on partner ecosystem .

Financial Results

MetricQ2 FY25Q3 FY25Q4 FY25
Revenue ($USD Billions)$9.325 $9.444 $9.993
GAAP Diluted EPS ($)$1.47 $1.58 $1.75
Non-GAAP Diluted EPS ($)$2.56 $2.41 $2.78
GAAP Operating Margin %19.1% 20.0% 18.2%
Non-GAAP Operating Margin %33.7% 33.1% 33.1%
cRPO ($USD Billions)$26.5 $26.4 $30.2
Total RPO ($USD Billions)$53.5 $53.1 $63.4

Segment breakdown (Subscription & Support revenues):

Service Offering ($USD Billions)Q4 FY24Q3 FY25Q4 FY25
Sales$1.969 $2.119 $2.134
Service$2.158 $2.288 $2.327
Platform & Other$1.720 $1.825 $1.918
Marketing & Commerce$1.274 $1.334 $1.357
Integration & Analytics$1.627 $1.313 $1.715

Geographic revenue:

Region ($USD Billions)Q4 FY24Q3 FY25Q4 FY25
Americas$6.176 $6.220 $6.660
Europe$2.205 $2.228 $2.334
Asia Pacific$0.906 $0.996 $0.999

KPIs:

KPIQ2 FY25Q3 FY25Q4 FY25
Operating Cash Flow ($USD Billions)$0.892 $1.983 $3.970
Free Cash Flow ($USD Billions)$0.755 $1.779 $3.816
Subscription & Support Revenue ($USD Billions)$8.764 $8.879 $9.451
Professional Services & Other Revenue ($USD Billions)$0.561 $0.565 $0.542

Results vs Prior Guidance (Q4 FY25):

MetricPrior Guidance (Q4 FY25)Actual (Q4 FY25)Surprise
Total Revenue ($B)$9.90–$10.10 $9.993 In range
GAAP EPS ($)$1.55–$1.60 $1.75 Beat
Non-GAAP EPS ($)$2.57–$2.62 $2.78 Beat
cRPO Growth (nominal)~9% 9% nominal; 11% CC Met/above in CC

Note: Wall Street consensus from S&P Global was unavailable at time of analysis due to API limits; estimate comparisons will be updated when available.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($B)Q1 FY26N/A$9.71–$9.76 Initiated
cRPO GrowthQ1 FY26N/A~10% nominal; ($100M) FX Initiated
GAAP EPS ($)Q1 FY26N/A$1.49–$1.51 Initiated
Non-GAAP EPS ($)Q1 FY26N/A$2.53–$2.55 Initiated
Total Revenue ($B)FY26N/A$40.5–$40.9 Initiated
GAAP Operating Margin %FY26N/A21.6% Initiated
Non-GAAP Operating Margin %FY26N/A34.0% Initiated
GAAP EPS ($)FY26N/A$6.95–$7.03 Initiated
Non-GAAP EPS ($)FY26N/A$11.09–$11.17 Initiated
Operating Cash Flow GrowthFY26N/A~10%–11% Initiated
Subscription & Support Rev GrowthFY26N/A~8.5% Y/Y (~9% CC) Initiated
FX Impact (Revenue)FY26N/A($150M) Y/Y FX Headwind

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 FY25, Q3 FY25)Current Period (Q4 FY25)Trend
AI/Agentforce adoptionAgentforce announced; strong AI positioning (Q2); >200 Agentforce wins in one week; 2,000+ AI deals; industry ARR $5.7B (+20%) (Q3) 5,000 Agentforce deals since Oct; >3,000 paid; $900M Data Cloud & AI ARR (+120% Y/Y); top 10 wins included Data & AI Accelerating adoption, broader attach
Pricing model shiftUsage-based at ~$2/conversation noted; early upsell on Service Cloud; moving toward universal credits (Q3) Mix of per-seat (humans) and consumption (agents); universal credit flexibility emphasized Transition to consumption; flexible packaging
Macro/FXQ2 clean FX; Q3: $100M FX tailwind in cRPO; APAC strong; EMEA mixed Incremental FX headwinds ($75M vs guidance); cRPO $300M FX headwind; APAC strongest; US stabilizing; parts of EMEA constrained Strong USD headwind; regional divergence
Product performanceDouble-digit growth in Sales/Service; tough compares in MuleSoft/Tableau (Q3) Slack in >1/3 of $1M+ deals, contribution up double digits Y/Y; Sales/Service double-digit growth; tough license compares persist Core clouds resilient; Slack momentum
Regional trendsQ3: Americas +6% nominal; EMEA +12% nominal; APAC +16% nominal Q4: Americas +8% nominal; EMEA +6% nominal; APAC +10% nominal (14% CC) APAC leading; EMEA constrained; US stabilizing
Margins & cashRecord non-GAAP margin 33.7% (Q2); GAAP margin 20% first time (Q3) Q4 non-GAAP 33.1%; FY26 non-GAAP 34% guided; OCF +28% Y/Y FY25 Continued margin expansion; strong cash
Management changesCFO transition announced (Q2) Robin Washington named COFO; leadership rebalancing across revenue/product/engineering Strengthened operating/finance leadership
Industry verticalsIndustry ARR $5.7B (+20%) (Q4 commentary reflecting Q4 list shared in Q4 call) Life Sciences Cloud highlighted (Pfizer); ~75% of top 100 deals included industry cloud Vertical solutions scaling with agents

Management Commentary

  • Marc Benioff: “We had an incredible quarter and year…highest cash flow in our company’s history and more than $60 billion in RPO…deeply unified platform…Customer 360 apps, Data Cloud and Agentforce” .
  • Amy Weaver: “Q4 non-GAAP operating margin was 33.1%, up 170 bps Y/Y…Q4 operating cash flow nearly $4 billion (+17% Y/Y)…FY25 operating cash flow was a record $13.1B (+28% Y/Y)” .
  • Brian Millham: “Agentforce…handled 380,000 service requests…84% resolution rate…only 2% human escalation…Slack included in over 1/3 of our deals over $1 million” .
  • Marc Benioff on AI scale: “We closed out fiscal year ’25 with $10 billion in revenue…more than 400 deals over $1 million…all of our top 10 wins included data and AI” .

Q&A Highlights

  • Pricing and packaging: Management reiterated mix of per-user (humans) and consumption (agents), noted plans to shift toward universal credits for flexibility; cited example of ~$20M ACV “telecom” contract with ~$7M Agentforce component .
  • Halo effect: Agentforce drives broader multi-cloud adoption, improving core app attach (Sales, Service, Data Cloud) as customers implement the “apps, data, agents” trinity .
  • Workforce/productivity: Digital labor expected to augment/rebalance roles; CRM cited internal examples (engineering +30% productivity, sales org growth) and sector opportunities (government scale) .
  • Leadership changes: Introduction of COFO role (Robin Washington), rebalancing across revenue, engineering/services, and product leadership to execute AI agenda .
  • Guidance clarifications: FY26 assumes modest Agentforce revenue contribution (deployment focus) with momentum building into FY27; attrition expected slightly above 8% .

Estimates Context

  • S&P Global (Capital IQ) consensus data was unavailable at the time of analysis due to API limits; we will refresh and add explicit consensus comparisons when accessible.
  • Relative to prior company guidance, Q4 revenue was in range and both GAAP and non-GAAP EPS meaningfully exceeded guidance, suggesting upward pressure on near-term EPS expectations absent FX or mix-related headwinds .

Key Takeaways for Investors

  • Non-GAAP EPS beat vs guidance and record cash generation point to continued operating discipline; FY26 margin guidance to 34% indicates another year of expansion despite AI investments .
  • RPO/cRPO strength and early renewals (with FX headwinds) underline demand durability; backlog supports FY26 revenue trajectory .
  • AI narrative has tangible traction: $900M AI/Data Cloud ARR (+120% Y/Y), thousands of paid Agentforce deals, and broad multi-cloud attach in $1M+ transactions .
  • Watch segment mix: sustained double-digit growth in Sales/Service vs tougher compares in MuleSoft/Tableau; FY26 commentary flags marketing/commerce softness and professional services headwind .
  • Regional lens: APAC remains strongest, EMEA constrained, US stabilizing; FX is a significant variable for reported growth and cRPO .
  • Near-term trading: EPS beat and elevated RPO/cRPO are positives; however FX and services mix may temper topline growth optics. Monitor updates at TrailheadDX and Agentforce deployments for revenue contribution timing .
  • Medium-term thesis: CRM’s integrated “apps+data+agents” platform and partner ecosystem (AWS/Google, SIs) create defensible AI scale advantages; expect Agentforce monetization to inflect into FY27 as deployments mature .
Citations:
- Q4 FY25 8-K and Exhibit 99.1 press release: **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:0]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:1]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:6]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:7]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:8]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:9]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:10]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:12]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:13]** **[1108524_0001108524-25-000002_crm-q4fy25xexhibit991.htm:14]**
- Q4 FY25 earnings call transcript: **[1108524_CRM_3418027_1]** **[1108524_CRM_3418027_2]** **[1108524_CRM_3418027_6]** **[1108524_CRM_3418027_7]** **[1108524_CRM_3418027_8]** **[1108524_CRM_3418027_9]** **[1108524_CRM_3418027_10]** **[1108524_CRM_3418027_12]** **[1108524_CRM_3418027_14]** **[1108524_CRM_3418027_16]**
- Q4 FY25 press release duplicate: **[1108524_9a5f6f333fff4a838df251b5c09b94f6_0]**–**[1108524_9a5f6f333fff4a838df251b5c09b94f6_21]**
- Q3 FY25 8-K/press release and transcript: **[1108524_0001108524-24-000033_crm-q3fy25xexhibit991.htm:0]** **[1108524_0001108524-24-000033_crm-q3fy25xexhibit991.htm:1]** **[1108524_0001108524-24-000033_crm-q3fy25xexhibit991.htm:6]**–**[1108524_0001108524-24-000033_crm-q3fy25xexhibit991.htm:13]** **[1108524_CRM_3410509_7]**–**[1108524_CRM_3410509_14]**
- Q2 FY25 8-K/press release: **[1108524_0001108524-24-000020_crm-q2fy25xexhibit991.htm:0]**–**[1108524_0001108524-24-000020_crm-q2fy25xexhibit991.htm:15]**