Summary
Salesforce reported fourth quarter revenue of $9.99 billion, up 7.6% from the prior-year quarter. Full year revenue was $37.90 billion, up 8.7%. Gross profit for the quarter was $7.78 billion, up 8.9%, and gross margin was 77.8%, up 0.9 percentage points. For the full year, gross profit was $29.25 billion, up 11.2%, and gross margin was 77.2%, up 1.7 percentage points. Operating income in the quarter was $1.82 billion, up 12.2%, with an operating margin of 18.2%, up 0.7 percentage points. Full year operating income was $7.20 billion, up 43.8%, and full year operating margin was 19.0%, up 4.6 percentage points. Net income in the quarter was $1.71 billion, up 18.1%. Full year net income was $6.20 billion, up 49.8%, and full year diluted EPS was $6.36, up $2.16 or 51.4%.
The quarter included several AI and data milestones. Data Cloud AI annual recurring revenue reached $900 million, up 120% year over year. Since October, Salesforce closed 5,000 Agentforce deals, including more than 3,000 paid. Data Cloud surpassed 50 trillion records, which doubled year over year. Nearly half of the Fortune 100 are both AI Data Cloud customers, and all of the company's top 10 wins in Q4 included Data and AI. On help.salesforce.com, Agentforce handled 380,000 conversations, achieved an 84% resolution rate, and only 2% of requests required human escalation. Total remaining performance obligations were $63.40 billion, up 11.4%. Deferred revenue was $20.74 billion, up 9.2%. The attrition rate was approximately eight percent as of January 31, 2025.
Cash generation and capital spending rounded out the financial picture. Fourth quarter operating cash flow was $3.97 billion, up 16.7%. Full year operating cash flow was $13.09 billion, up 27.9%, and full year free cash flow was $12.4 billion, up 31%. Capital expenditures were $154 million in the quarter, up 4.8%, while full year capital expenditures were $658 million, down 10.6%. Salesforce continued to invest in infrastructure and product development while keeping full year capital spending below the prior year.
Guidance for FY26 points to continued growth and margin expansion. Management initiated full year FY26 revenue guidance of $40.5 billion to $40.9 billion, up 7% to 8% in constant currency. For Q1 FY26, revenue guidance is $9.71 billion to $9.76 billion, up 6% to 7% year over year. The full year FY26 GAAP operating margin guidance is 21.6%, and non-GAAP operating margin guidance is 34.0%. Full year FY26 GAAP diluted EPS guidance is $6.95 to $7.03, and non-GAAP diluted EPS guidance is $11.09 to $11.17. Q1 FY26 GAAP diluted EPS guidance is $1.49 to $1.51, and non-GAAP diluted EPS guidance is $2.53 to $2.55. Management also initiated FY26 operating cash flow growth guidance of approximately 10% to 11%, subscription support revenue growth guidance of approximately 8.5% year over year or approximately 9% in constant currency, and Q1 FY26 current remaining performance obligation growth guidance of approximately 10%. The guidance includes an estimated FX impact of ($50 million) for Q1 FY26 and ($150 million) for FY26.
The main risks sit in the demand and execution backdrop. MD&A says the buying environment outside AI has stabilized, but a reemergence of slower growth in new and renewal business could impact remaining performance obligation, revenues, and the ability to meet financial guidance and long-term targets. Foreign currency fluctuations negatively impacted current remaining performance obligation growth compared with constant currency rates. Seasonality adds another layer: the fourth quarter has historically been the strongest for new business and renewals, the first quarter is typically the largest for collections and operating cash flow, and the third quarter is historically the smallest for operating cash flow. The safe harbor list also flags security and service performance, data center capacity, reliance on third-party infrastructure, AI technology uncertainties, regulations, litigation, competition, acquisition integration, foreign currency, inflation, market volatility, trade policies, and climate or health events. Restructuring benefits and workforce changes remain part of the cost story.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $9.99B | $9.44B | +5.8% | $9.29B | +7.6% |
| Gross profit | $7.78B | $7.34B | +6.0% | $7.14B | +8.9% |
| Gross margin | 77.8% | 77.7% | +0.1 pp | 76.9% | +0.9 pp |
| Research & development | $1.42B | $1.36B | +4.7% | $1.27B | +11.4% |
| Sales & marketing | $3.47B | $3.32B | +4.5% | $3.44B | +1.0% |
| General & administrative | $767.0M | $711.0M | +7.9% | $632.0M | +21.4% |
| Total operating expenses | $5.96B | $5.45B | +9.4% | $5.52B | +8.0% |
| Operating income (loss) | $1.82B | $1.89B | -3.9% | $1.62B | +12.2% |
| Operating margin | 18.2% | 20.0% | -1.8 pp | 17.5% | +0.7 pp |
| Net income (loss) | $1.71B | $1.53B | +11.9% | $1.45B | +18.1% |
| Net margin | 17.1% | 16.2% | +0.9 pp | 15.6% | +1.5 pp |
| Diluted EPS | $1.75 | $1.58 | +$0.17 | $1.47 | +$0.28 |
Risks
Salesforce faces intense competition as AI becomes integrated into enterprise software, and competitors may incorporate AI into their offerings more efficiently or achieve faster adoption than Salesforce. The filing also warns that new AI offerings may disrupt workforce needs and negatively impact demand for Salesforce offerings.
Agentforce and Data Cloud use consumption-based pricing, and Salesforce has limited experience determining optimal pricing for these contracts. Customer flexibility in consumption timing could lead to lower usage than expected and suboptimal pricing, which may hurt revenue growth.
As Salesforce targets larger enterprise and government customers, sales cycles may become more time-consuming and expensive, with greater pricing pressure, configuration and implementation challenges, and delayed revenue recognition. MD&A notes FY2025 professional services and other revenue decreased 4% due in part to less demand for larger, multi-year transformation engagements and delayed projects.
Threat actors are using AI to create increasingly automated, targeted, and coordinated attacks, and Salesforce has in the past been the target of malicious cyberattacks. A material breach could cause reputational harm, legal exposure, regulatory disclosure obligations, and customer loss.
Evolving privacy, AI, and cross-border data transfer regulations, including the EU AI Act, DORA effective January 2025, and uncertainty around the EU-U.S. Data Privacy Framework, may increase compliance costs, limit service delivery, or create liability.
Generative and agentic AI offerings such as Agentforce present risks related to accuracy, bias, toxicity, privacy, security, and data provenance. AI may create factually inaccurate content or include protected material, potentially leading to reputational harm and legal liability.
Customers have no obligation to renew subscriptions and may renew for fewer subscriptions, shorter contract lengths, or lower cost offerings. Salesforce's attrition rate was approximately 8% as of January 31, 2025, and an increase in attrition could reduce revenue and current remaining performance obligation.
Volatile and weakened global economic conditions, trade tensions, tariffs, and geopolitical conflicts could delay customer purchasing decisions and reduce the value or duration of subscription contracts. MD&A notes that a reemergence of slower growth in new and renewal business could impact remaining performance obligation, revenues, and the ability to meet financial guidance.
Foreign currency fluctuations can impact revenue, cash flows, and key metrics. MD&A states that current remaining performance obligation growth as of January 31, 2025 compared to January 31, 2024 was negatively impacted by two percent compared to what would have been reported using constant currency rates.
Salesforce periodically acquires companies and technologies, and integration may fail to achieve expected benefits, introduce security vulnerabilities, face antitrust scrutiny, dilute stockholders, or disrupt operations.
Fiscal 2025 included targeted workforce and office space reductions, with $461 million of restructuring costs in FY2025, and these actions could negatively impact the ability to attract, integrate, retain, and motivate key employees.
The strategic investment portfolio is subject to partial or total loss of invested capital and fair value volatility. In FY2025, impairments on privately held equity and debt securities were $582 million, partially offset by $358 million in unrealized gains on privately held equity securities.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Billings and other
Current remaining performance obligation (cRPO)
Summary, forecast, risks and KPIs are extracted from Salesforce, Inc.'s SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.