Executive Summary
Salesforce delivered solid top-line growth in Q4 2025 with revenue of USD 9.993 billion, up 7.6% year over year and 5.8% quarter over quarter. The gross margin remained robust at approximately 77.8%, underscoring the high-margin nature of the company’s cloud-based subscription model, while operating income reached USD 1.82 billion and net income USD 1.71 billion, yielding net margins near 17.1% and EPS of USD 1.78 (diluted USD 1.75). Free cash flow generation remained exceptionally strong, with USD 3.82 billion of free cash flow and USD 3.97 billion of operating cash flow, contributing to a healthy liquidity position. Cash and cash equivalents plus short-term investments stood at roughly USD 14.0 billion, against total debt of USD 11.4 billion, implying a net cash stance of about USD 2.6 billion. The company continues to invest in platform-native growth (Sales Cloud, Service Cloud, Marketing Cloud, Tableau, and MuleSoft) and AI-enabled capabilities to bolster cross-sell, retention, and long-term ARR growth.
Key Performance Indicators
Key Insights
Revenue: USD 9.993B; YoY +7.60%, QoQ +5.81%
Gross Profit: USD 7.776B; Gross Margin 77.78%; YoY +8.92%, QoQ +5.95%
Operating Income: USD 1.82B; Operating Margin 18.21%; YoY +12.21%, QoQ -3.86%
Net Income: USD 1.708B; Net Margin 17.09%; YoY +18.12%, QoQ +11.85%
EPS (GAAP): USD 1.78; Diluted EPS: USD 1.75; YoY EPS +19.46%, QoQ +11.25%
Cash Flows: Operating Cash Flow USD 3.97B; Free Cash Flow USD 3.82B; Capex USD -0.154B; Free Cash Flow Margin and Cash Conversion 39.7% of revenue (operating cash flo...
Financial Highlights
Revenue: USD 9.993B; YoY +7.60%, QoQ +5.81%
Gross Profit: USD 7.776B; Gross Margin 77.78%; YoY +8.92%, QoQ +5.95%
Operating Income: USD 1.82B; Operating Margin 18.21%; YoY +12.21%, QoQ -3.86%
Net Income: USD 1.708B; Net Margin 17.09%; YoY +18.12%, QoQ +11.85%
EPS (GAAP): USD 1.78; Diluted EPS: USD 1.75; YoY EPS +19.46%, QoQ +11.25%
Cash Flows: Operating Cash Flow USD 3.97B; Free Cash Flow USD 3.82B; Capex USD -0.154B; Free Cash Flow Margin and Cash Conversion 39.7% of revenue (operating cash flow to revenue)
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
$0.24
freeCashFlowPerShare
$0.23
dividendPayoutRatio
22.4%
Management Commentary
Transcript highlights unavailable in the provided data. Management quotes and themes could not be incorporated due to the absence of an earnings call transcript in the dataset. If a transcript becomes available, quotes should be grouped by themes (strategy, operations, market conditions) with context and significance for investors.
Forward Guidance
No explicit forward guidance was supplied in the provided data. Investors should monitor: (1) ARR progression and net revenue retention, (2) AI-driven feature adoption and cross-sell momentum across Platform offerings (Sales Cloud, Service Cloud, Marketing Cloud, Tableau, MuleSoft, Slack), (3) operating leverage as routing of investments to high-return initiatives matures, (4) mix shifts toward high-margin products, (5) currency exposure and macro demand environment. Based on the strong Q4 2025 cash flow and balance sheet durability, Salesforce appears positioned for continued revenue growth in the mid-to-high single digits with potential margin expansion as the AI-enabled platform scales. Key factors to watch include retention/expansion velocity within enterprise customers, deal cycles in large deployments, and any deltas in deferred revenue that could affect short-term profitability signals.