Salesforce Inc (CRM.BA) Q4 2025 Earnings Report

Salesforce delivered a solid fourth quarter of fiscal 2025 with top-line momentum and strong cash flow generation. Revenue reached $9.993 billion, up 7.6% year over year and 5.8% quarter over quarter, supported by broad-based demand across its CRM platform and continued cross-sell of complementary applications. Gross profit rose to $7.776 billion, yielding a gross margin of 77.8%, while operating income was $1.82 billion (operating margin ~18.2%), underscoring a favorable margin trajectory even as operating expenses remain elevated due to ongoing platform and AI investments. Net income totaled $1.708 billion, delivering EPS of $1.78 (diluted $1.75), up from prior-year levels and reflecting a robust operating backdrop and disciplined financial management.

Free cash flow remained exceptionally strong at $3.816 billion for the quarter, with operating cash flow of $3.97 billion and a free cash flow per share of $3.99. Salesforce ended the period with $8.848 billion in cash and cash equivalents and $14.032 billion in short‑term investments, totaling roughly $22.88 billion in highly liquid assets when combined. Total debt stood at $11.392 billion, yielding a net debt position of approximately $2.544 billion, supporting a healthy balance sheet and ongoing capital allocation initiatives including modest share repurchases ($76 million) and dividend payments ($383 million).

The earnings data reflect a company that is transitioning toward greater margin discipline while investing for long‑term platform growth. The combination of durable cash generation, a broad product suite (Sales Cloud, Service Cloud, Marketing Cloud, Tableau, MuleSoft, Slack), and ongoing AI-enabled enhancements positions Salesforce to monetize its installed base through cross-sell opportunities and expansions into adjacent workloads. However, the business continues to face elevated operating expenses, a large goodwill/intangible asset base, and macro-driven variability in large enterprise purchasing cycles. Absent explicit forward-looking guidance in the data provided, investors should weigh the near-term profitability rhythm against the long‑term revenue expansion potential driven by platform convergence and AI-enabled capabilities.