Salesforce reported solid second quarter results for QQ2 2025, underscoring continued demand for its AI-enhanced CRM platform and a healthy revenue trajectory. Revenue of $9.325 billion represented YoY growth of 8.39% and QoQ growth of 2.10%, with a robust gross margin of 76.85% and an operating margin of 19.12% (expense discipline supports profitability given ongoing R&D and SG&A investments). Net income of $1.429 billion and diluted EPS of $1.47 reflect continued earnings power as the company monetizes its expanding product stack.
Cash flow remained constructive, with operating cash flow of $0.892 billion and free cash flow of $0.755 billion. The balance sheet remains well-capitalized, with cash and short-term investments totaling $12.636 billion and a total equity base of $57.633 billion. Deferred revenue sits at $15.222 billion, signaling revenue visibility and platform stickiness. Offsetting growth, Salesforce carries a sizable goodwill balance (~$48.94 billion) tied to past acquisitions, which warrants ongoing monitoring for impairment risk if growth slows. Share repurchases and dividends continued to return capital to shareholders, while investments in product development and platform expansion persist as a core strategic priority.
Overall, the QQ2 2025 results position Salesforce to pursue modest near-term growth while investing for long-term scale in AI-enabled CRM and integrated cloud capabilities. Investors should watch ARR/net retention, AI-driven product adoption, and the margin trajectory as scaling benefits materialize.