Salesforce reports strong Q4 and fiscal year 2025 earnings as AI and data cloud drive growth

Salesforce (NYSE: CRM) has delivered a robust financial performance for the fourth quarter and full fiscal year 2025, driven by strong growth in AI and Data Cloud solutions. The company reported $10 billion in fourth-quarter revenue, marking an 8% year-over-year increase, with a 9% rise in constant currency. Subscription and support revenue, which remains the core of Salesforce’s business, accounted for $9.5 billion, reflecting a similar 8% year-over-year increase.

For the full fiscal year 2025, the company generated $37.9 billion in revenue, representing a 9% increase year-over-year. This included $35.7 billion in subscription and support revenue, which grew 10% year-over-year. The total remaining performance obligation (RPO) rose to $63.4 billion, an 11% increase, indicating strong future revenue commitments. Meanwhile, the current remaining performance obligation stood at $30.2 billion, up 9% year-over-year, further solidifying Salesforce’s long-term revenue visibility.

Salesforce also reported a GAAP operating margin of 19.0%, while the non-GAAP operating margin improved to 33.0%, underscoring the company’s focus on operational efficiency. The company achieved a record $13.1 billion in operating cash flow, marking a 28% increase year-over-year, while free cash flow rose by 31% to $12.4 billion.

What Is Driving Salesforce’s Growth in AI and Data Cloud?

Salesforce’s strong financial results have been largely driven by the rapid expansion of its AI and Data Cloud solutions, which continue to gain traction across enterprises. The company reported $900 million in annual recurring revenue for its Data Cloud and AI offerings, reflecting an impressive 120% year-over-year growth.

Since October, Salesforce has successfully closed 5,000 Agentforce deals, with more than 3,000 of these contracts being paid agreements. Data Cloud adoption has soared, with the platform surpassing 50 trillion records, doubling its size compared to the previous year. Salesforce highlighted that nearly half of the Fortune 100 companies are now utilizing both AI and Data Cloud, demonstrating the increasing reliance on AI-driven customer relationship management solutions.

Agentforce, Salesforce’s AI-powered customer service solution, has seen notable adoption. The platform has processed 380,000 customer interactions on help.salesforce.com, achieving an 84% resolution rate, with only 2% of cases requiring human intervention. This highlights Salesforce’s continued advancements in automation and AI-driven customer support.

How Is Salesforce Returning Value to Shareholders?

Salesforce has maintained a disciplined approach to capital allocation, returning $9.3 billion to shareholders in fiscal year 2025. This included $7.8 billion in share repurchases and $1.5 billion in dividend payments. Since the inception of its capital return program, the company has returned a total of $21 billion, reflecting its commitment to enhancing shareholder value while maintaining strong financial performance.

What Are Salesforce’s Financial Projections for Fiscal Year 2026?

Looking ahead, Salesforce has provided optimistic financial guidance for fiscal year 2026, with revenue projected to fall between $40.5 billion and $40.9 billion, representing 7% to 8% year-over-year growth. The company also anticipates subscription and support revenue growth of approximately 8.5% year-over-year.

Profitability is expected to improve further, with the GAAP operating margin projected to reach 21.6%, while the non-GAAP operating margin is forecasted at 34.0%. Additionally, Salesforce expects operating cash flow to grow between 10% and 11% year-over-year, reinforcing its strong financial position.

What Are Analysts Saying About Salesforce’s Stock Performance?

Salesforce’s strong earnings report has bolstered investor confidence, with analysts citing its growth in AI and Data Cloud, rising operating margins, and record-breaking cash flow as key indicators of sustained financial strength. The company’s focus on automation and AI-driven efficiency continues to attract enterprise customers looking for scalable, cost-effective CRM solutions.

Despite Salesforce’s strong financial performance, market analysts are watching closely to see whether the company can sustain its double-digit growth in AI and Data Cloud adoption while maintaining operational efficiency. Investors will also be monitoring Salesforce’s ability to continue delivering shareholder returns through stock repurchases and dividend payments.

What Are Salesforce Executives Saying About the Company’s Future?

Salesforce Chair and CEO Marc Benioff emphasized the company’s leadership in AI and digital transformation, stating that no other company is better positioned to guide enterprises through the digital labor revolution. He highlighted that Salesforce’s deeply integrated platform, which includes Customer 360, Data Cloud, and Agentforce, is driving productivity, efficiency, and cost savings across its global customer base.

President and CFO Amy Weaver reinforced the company’s commitment to profitable growth, citing Salesforce’s record-breaking revenue, operating margin, and cash flow as evidence of its strong financial foundation. She also noted that the company’s capital return program has delivered exceptional value to shareholders.

What Lies Ahead for Salesforce?

Salesforce’s future growth strategy will likely revolve around expanding its AI-driven offerings while continuing to improve its operational efficiency and profitability. As enterprises increasingly adopt AI-powered CRM solutions, Salesforce remains well-positioned to capture market share and drive innovation in the customer relationship management space.

The company’s fiscal year 2026 guidance suggests confidence in its ability to sustain high revenue growth, while its commitment to shareholder returns reinforces its long-term value proposition. With an increasing emphasis on AI and Data Cloud solutions, Salesforce is poised to remain a dominant force in the CRM industry.