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 Q4 2025
Salesforce (CRM) fourth-quarter fiscal 2025 earnings were mixed. They reported adjusted earnings per share of $2.78, which was higher than the estimate of US$2.61. However, their quarterly revenue was $10 billion, slightly below the market forecast of $10.04 billion.
Key Highlights of Earning:
- Fourth-quarter revenue was $10 billion, an 8% increase from last year, with $9.5 billion from subscription & support revenue.
- FY25 revenue was $37.9 billion, up 9% from last year, with $35.7 billion from subscription & support revenue (10% increase from last year).
- FY25 GAAP operating margin was 19%, and non-GAAP operating margin was 33.0%.
- FY25 operating cash flow was $13.1 billion, up 28% from last year, and free cash flow was $12.4 billion, up 31% from last year.
- Salesforce returned $7.8 billion through share repurchases and $1.5 billion through dividend payments to stockholders, totaling $9.3 billion returned to stockholders in FY25.
Full Year FY26 Guidance:
- Salesforce expects to make $40.5 to $40.9 billion in revenue, which is a 7% to 8% increase from last year.
- They expect subscription and support revenue to grow by about 8.5% from last year.
- They expect a GAAP operating margin of 21.6% and non-GAAP operating margin of 34.0%.
- They expect their operating cash flow to grow by about 10% to 11% from last year.
Board Statements
Marc Benioff, Chair and CEO of Salesforce, reported an incredible quarter and year, with strong performance across all key metrics, including the highest cash flow in the company’s history and more than $60 billion in RPO.
He highlighted that no company is better positioned than Salesforce to lead customers through the digital labor revolution. By leveraging their deeply unified platform, seamlessly integrating Customer 360 apps, Data Cloud, and Agentforce, Salesforce is already delivering unprecedented levels of productivity, efficiency, and cost savings for thousands of companies.
Impact on the Stock Market
Salesforce (CRM) is lowering expectations for how its AI agents will affect sales in 2025 after its earnings report.
The company’s stock fell nearly 3% in premarket trading on Thursday due to disappointing earnings forecast for 2025.
CRM broke through the strong resistance level of $320 with weakening in its momentum and has pulled back to this point after its cautious outlook for the new fiscal year. The price has dropped and is now falling towards the next Fibonacci resistance levels at $291 and $273.
