Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Salesforce delivered a strong fiscal year 2025, with revenue growing 8.7% to $37.9B while operating income surged 43.8% to $7.2B and net income jumped 49.8% to $6.2B, reflecting significant margin expansion and disciplined cost management.
Revenue
$37.9B
+8.72% YoY
EPS (Diluted)
$6.36
+51.43% YoY
Gross Margin
77.2%
+1.7 pts YoY
Operating Income
$7.21B
+43.78% YoY
Source: SEC XBRL
Salesforce (CRM) reported FY2025 revenue of $37.9B, up 8.7% year over year. Operating margin was 19.0%, up 4.6 points from 14.4% a year earlier. Operating cash flow was $13.09B, up 27.9% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.88 | 3.15 | Beat +23.2% |
| Mar 2026 | 3.81 | 3.08 | Beat +23.9% |
| Dec 2025 | 3.25 | 2.89 | Beat +12.6% |
| Sep 2025 | 2.91 | 2.81 | Beat +3.7% |
Compiled by AI from this SEC filing
Total revenue grew 8.7% year-over-year to $37.9B in FY2025, up from $34.9B in FY2024, reflecting continued demand for Salesforce's CRM, platform, and data cloud solutions across enterprise customers globally.
Source: 10-K Income Statement
Operating income surged 43.8% to $7.2B, pushing the operating margin from 14.4% to 19.0% — a 4.6 percentage point improvement — indicating that revenue growth is outpacing cost growth and the company is achieving meaningful operating leverage.
Source: 10-K Income Statement
Gross margin improved 170 basis points to 77.2% from 75.5%, suggesting a favorable shift toward higher-margin subscription and support revenues relative to professional services, as cost of revenue grew only 1.2% versus 11.2% gross profit growth.
Source: 10-K Income Statement & Key Ratios
Operating cash flow grew 27.9% to $13.1B, enabling Salesforce to return capital aggressively to shareholders via $7.8B in share buybacks and its inaugural dividend payment of $1.5B, while also reducing long-term debt by 10.5% to $8.4B.
Source: 10-K Cash Flow Statement
R&D expense rose 12.0% to $5.5B, outpacing revenue growth, reflecting Salesforce's commitment to investing in artificial intelligence capabilities and next-generation product development to maintain competitive differentiation.
Source: 10-K Income Statement
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Revenue growth decelerated to 8.7% in FY2025, compared to higher historical growth rates, which may signal market saturation in core CRM segments or increased competition from Microsoft, Oracle, and emerging AI-native platforms. Sustaining double-digit growth will require successful monetization of AI features and expansion into new markets.
Source: 10-K Income Statement
The current ratio stands at only 1.06x, meaning current assets of $29.7B barely cover current liabilities of $28.0B. This thin liquidity cushion leaves limited buffer for unexpected cash needs, though strong operating cash flow of $13.1B partially mitigates this concern.
Source: 10-K Balance Sheet & Key Ratios
R&D expense of $5.5B represents approximately 14.5% of revenue and grew faster than revenue at 12.0% YoY, reflecting heavy investment in AI capabilities such as Agentforce. If these investments do not translate into accelerated revenue growth or pricing power, margins could face pressure.
Source: 10-K Income Statement
Salesforce deployed $7.8B in buybacks and initiated a $1.5B dividend in FY2025, totaling over $9.3B in capital returns. While reflecting confidence in cash generation, these commitments reduce flexibility for large acquisitions or to weather a potential revenue slowdown.
Source: 10-K Cash Flow Statement
With total assets of $102.9B and stockholders' equity of $61.2B, a substantial portion of the balance sheet is likely comprised of goodwill and intangibles from historical acquisitions (e.g., Slack, Tableau, MuleSoft). Any impairment of these assets could materially impact reported equity and earnings.
Source: 10-K Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 37.90 $B | 34.86 $B | +8.72% |
Cost of Revenue $B | 8.64 $B | 8.54 $B | +1.19% |
Gross Profit $B | 29.25 $B | 26.32 $B | +11.16% |
Operating Income $B | 7.21 $B | 5.01 $B | +43.78% |
Net Income $B | 6.20 $B | 4.14 $B | +49.83% |
EPS (Basic) $ | 6.44 $ | 4.25 $ | +51.53% |
EPS (Diluted) $ | 6.36 $ | 4.20 $ | +51.43% |
R&D Expense $B | 5.49 $B | 4.91 $B | +11.96% |
Answers draw on this SEC filing and the data on this page
Salesforce (CRM) reported Q1 FY2027 revenue growth of 13.3% to $11.1B and operating-margin expansion to 21.1%, while net income rose 36.7% to $2.1B, aided by a $558M net gain on strategic investments and an accelerated share repurchase that added $0.14 to diluted EPS. Source: 10-Q Item 2 MD&A, pp.30, 34, 37.
Salesforce delivered a strong fiscal year 2026, with revenue growing 9.6% to $41.5B, net income surging 20.3% to $7.5B, and operating cash flow reaching a record $15.0B, while the company aggressively returned capital through $12.6B in share buybacks.
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