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Salesforce Earnings: 33% Enhanced Operating Margins (Q3 2025)

Salesforce is a dynamic company that’s been a game-changer in the world of customer relationship management (CRM). Founded in 1999 by Marc Benioff, Salesforce revolutionized the industry with its cloud-based solutions, making it easier for businesses to connect with customers, partners, and employees. Known for its innovation in AI and automation, Salesforce continues to lead with products like Agentforce, transforming how businesses operate. More than just a tech giant, Salesforce is also committed to social responsibility, often highlighting its efforts in philanthropy and sustainability. With its headquarters in San Francisco, Salesforce’s impact is felt worldwide, constantly pushing the envelope in both business and technology.

Salesforce Fiscal Q3 2025

Salesforce (CRM) has announced a revenue of $9.44 billion for its third quarter. This is an 8% rise from the previous year and above estimates. The company also improved its profitability, with a GAAP operating margin of 20% and a non-GAAP operating margin of 33.1%. However, the non-GAAP EPS fell short of estimates.

Key Highlights of Earning:

  • Revenue: $9.44 billion, up 8% year-over-year and in constant currency Subscription & support revenue was $8.88 billion, up 9%.
  • Net Income Per Share: GAAP diluted net income per share was $1.58 and non-GAAP diluted net income per share was $2.41, impacted by losses on strategic investments.
  • Operating Margins: GAAP operating margin was 20%, non-GAAP operating margin was 33.1%.
  • Current Remaining Performance Obligation: $26.4 billion, up 10% year over year.
  • Operating Cash Flow: $1.98 billion, up 29% year over year. Free cash flow was $1.78 billion, up 30%.
  • Shareholder Returns: Returned $1.2 billion through share repurchases and $0.4 billion in dividend payments, totaling $1.6 billion.

salesforce q3 earnings

FY25 Guidance:

  • Q4 Revenue: Expected to be between $9.9 billion and $10.1 billion, up 7%-9%.
  • Full Year Revenue: Raised to $37.8 billion – $38 billion, up 8%-9%.
  • Operating Margins: GAAP operating margin guidance raised to 19.8%, non-GAAP to 32.9%.
  • Operating Cash Flow Growth: Guidance raised to 24%-26%.

Board Statements

Salesforce’s CEO, Marc Benioff, and CFO, Amy Weaver, shared their excitement about the company’s impressive financial performance in Q3 2025. Benioff highlighted how their AI system, Agent force, is transforming global labor and industries, leading a new era of digital labor. Meanwhile, Weaver celebrated the strong growth, improved operating margins, and significant returns to shareholders. They emphasized Salesforce’s commitment to driving value for shareholders and staying at the forefront of innovation in the digital landscape.

Impact on the Stock Market

Following the release of Salesforce’s Q3 2025 earnings report, the company’s stock saw a significant boost, climbing about 13% in pre-market trading. This surge reflects investor confidence, spurred by strong financial results and positive future guidance, which exceeded market expectations. The robust performance and promising outlook clearly resonated well with the investors.

Picture of Shahryar Rahmani
Shahryar Rahmani

CEO and Co-Founder

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