Executive Summary
Salesforce reported QQ2 2025 revenue of USD 9.325 billion, marking a solid year-over-year increase of 8.4% and a sequential gain of 2.1%. The quarterly results featured a high gross margin of approximately 76.8% and an EBIT margin near 19.1%, underscoring the durability of the company’s subscription-based model and platform-based revenue mix. Operating cash flow was USD 892 million, with free cash flow of USD 755 million, reinforcing a strong cash generation engine even as the company continued to invest in growth initiatives. Salesforce ended the quarter with USD 7.682 billion in cash and cash equivalents and USD 12.636 billion in total cash and short-term investments, while reporting a net debt position of USD 3.711 billion on a total debt load of USD 11.393 billion. The company also returned capital to shareholders via USD 4.335 billion of share repurchases and USD 384 million in dividends, highlighting a constructive capital allocation strategy amid a high-growth backdrop.
Key Performance Indicators
Key Insights
Revenue: USD 9,325,000,000; YoY: +8.39%; QoQ: +2.10%
Gross Profit: USD 7,166,000,000; Gross Margin: 76.85%
Operating Income: USD 1,783,000,000; Operating Margin: 19.12%
EBITDA: USD 2,789,000,000; EBITDA Margin: 29.91%
Net Income: USD 1,429,000,000; Net Margin: 15.32%
EPS (Diluted): USD 1.47–1.48; YoY EPS: +13.85%; QoQ EPS: -6.33%
R&D Expenses: USD 1,349,000,000; R&D intensity ~14.5% of revenue
SG&A (incl. Selling&Marketing): USD 3,935,000,000; SG&A intensity ~42.2% of reve...
Financial Highlights
Revenue: USD 9,325,000,000; YoY: +8.39%; QoQ: +2.10%
Gross Profit: USD 7,166,000,000; Gross Margin: 76.85%
Operating Income: USD 1,783,000,000; Operating Margin: 19.12%
EBITDA: USD 2,789,000,000; EBITDA Margin: 29.91%
Net Income: USD 1,429,000,000; Net Margin: 15.32%
EPS (Diluted): USD 1.47–1.48; YoY EPS: +13.85%; QoQ EPS: -6.33%
R&D Expenses: USD 1,349,000,000; R&D intensity ~14.5% of revenue
SG&A (incl. Selling&Marketing): USD 3,935,000,000; SG&A intensity ~42.2% of revenue
Free Cash Flow: USD 755,000,000; CFO: USD 892,000,000
Cash & Equivalents + ST Investments: USD 12.636B; Cash at End: USD 7.682B
Total Debt: USD 11.393B; Net Debt: USD 3.711B; Deferred Revenue: USD 15.222B
Current Ratio: 1.041; Quick Ratio: 0.953; Cash Ratio: 0.366
Dividends Yield: 0.154%; Payout (dividends + buybacks): USD 4.719B in capital returned in the period
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.33B |
8.39% |
2.10% |
| Gross Profit |
7.17B |
10.42% |
2.80% |
| Operating Income |
1.78B |
20.80% |
4.33% |
| Net Income |
1.43B |
12.79% |
-6.78% |
| EPS |
1.48 |
13.85% |
-6.33% |
Key Financial Ratios
operatingProfitMargin
19.1%
operatingCashFlowPerShare
$0.93
freeCashFlowPerShare
$0.78
dividendPayoutRatio
26.9%
Management Commentary
No earnings call transcript highlights were provided in the dataset. Management commentary cannot be quoted directly from the QQ2 2025 dataset.
Forward Guidance
No formal forward guidance was included in the provided QQ2 2025 dataset. Given Salesforce’s visibility into a large deferred revenue base and ongoing platform investments (including CRM, Slack, Tableau, MuleSoft, and AI-driven enhancements), a reasonable expectation is for continued revenue progression in the mid-to-high single digits with potential margin improvement as the mix remains subscription-heavy and premium-tier offerings scale. Investors should monitor: (1) trajectory of billings and renewal rates given enterprise IT budgets; (2) progress on AI-enabled product monetization and cross-sell across the Customer 360 suite; (3) duration and impact of competitive pricing pressure; (4) capital allocation cadence (reinvestment vs. buybacks) and its effect on leverage and liquidity; (5) macro scenarios affecting large enterprise CRM spending.