Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue: $9,993,000,000; YoY growth 7.60%; QoQ growth 5.81%
Gross Profit: $7,776,000,000; Gross Margin 77.81%; YoY gross profit growth 8.92%; QoQ 5.95%
Operating Income: $1,820,000,000; Operating Margin 18.21%; YoY operating income growth 12.21%; QoQ change -3.86%
Net Income: $1,708,000,000; Net Margin 17.09%; YoY net income growth 18.12%; QoQ growth 11.85%
EPS (GAAP): $1.78; Diluted EPS: $1.75; YoY EPS growth 19.46%; QoQ 11.25%
Cash Flow: Net cash from operating activities $3,970,000,000; Capit...
Financial Highlights
Revenue: $9,993,000,000; YoY growth 7.60%; QoQ growth 5.81%
Gross Profit: $7,776,000,000; Gross Margin 77.81%; YoY gross profit growth 8.92%; QoQ 5.95%
Operating Income: $1,820,000,000; Operating Margin 18.21%; YoY operating income growth 12.21%; QoQ change -3.86%
Net Income: $1,708,000,000; Net Margin 17.09%; YoY net income growth 18.12%; QoQ growth 11.85%
EPS (GAAP): $1.78; Diluted EPS: $1.75; YoY EPS growth 19.46%; QoQ 11.25%
Cash Flow: Net cash from operating activities $3,970,000,000; Capital expenditures $-154,000,000; Free cash flow $3,816,000,000; Net cash from investing activities $(2,936,000,000); Net cash from financing activities $(73,000,000); Cash at end of period $8,848,000,000; Free Cash Flow per share $3.99; Operating Cash Flow per share $4.15; Cash and cash equivalents $8.848B; Short-term investments $5.184B; Total cash and short-term investments $14.032B; Net debt $2.544B (debt of $11.392B minus cash of $8.848B)
Balance Sheet health: Total assets $102.928B; Total liabilities $41.755B; Stockholders’ equity $61.173B; Current ratio 1.062; Quick ratio 1.062; DSO 107.58 days; Deferred revenue non-current $20.743B; Goodwill $51.283B; Intangible assets $4.428B; Total current assets $29.727B; Total non‑current assets $73.201B
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.99B |
7.60% |
5.81% |
| Gross Profit |
7.78B |
8.92% |
5.95% |
| Operating Income |
1.82B |
12.21% |
-3.86% |
| Net Income |
1.71B |
18.12% |
11.85% |
| EPS |
1.78 |
19.46% |
11.25% |
Key Financial Ratios
operatingProfitMargin
18.2%
operatingCashFlowPerShare
$4.15
freeCashFlowPerShare
$3.99
dividendPayoutRatio
22.4%
Management Commentary
Earnings call transcript not provided in the data set. Consequently, no verbatim management quotes or call-by-call highlights could be extracted from the supplied material.
Forward Guidance
No explicit forward guidance is included in the provided data. Given Salesforce’s ongoing investments in AI, platform expansion (Sales Cloud, Service Cloud, Marketing Cloud, Tableau, MuleSoft, Slack), and focus on cross-sell across a broad customer base, the company may aim to sustain mid‑single-digit revenue growth with improving operating leverage as scale and mix shift. Key factors to monitor include: (1) progress in cross-sell across the CRM platform and adoption of AI features, (2) trajectory of operating margins as the company executes on cost controls and scale benefits, (3) working capital dynamics given elevated DSOs, and (4) macro demand for large enterprise CRM deployments. Investors should watch the cadence of cash flow expansion, capex intensity, and the pace of debt reduction or refinancing if the interest rate environment evolves.