# Salesforce Beats on Earnings, Issues Better-Than-Expected Revenue Forecast
Salesforce delivered a strong finish to its fiscal year 2025, demonstrating robust performance across its business and signaling continued momentum heading into the new year. The cloud software giant announced results for its fourth quarter and full fiscal year ended January 31, 2025, showcasing impressive growth metrics that exceeded expectations and positioning the company as a leader in the AI-driven enterprise software market.
## Record Performance Across Key Metrics
Salesforce’s fourth quarter revenue reached $10.0 billion, representing 8% year-over-year growth and 9% growth in constant currency[1]. For the full fiscal year 2025, the company generated $37.9 billion in total revenue, up 9% both year-over-year and in constant currency[1]. More impressively, subscription and support revenue—the company’s most valuable recurring revenue stream—grew 10% year-over-year to $35.7 billion, demonstrating the strength of Salesforce’s core business model[1].
The company’s performance extended beyond top-line revenue growth. Operating cash flow reached $13.1 billion in fiscal 2025, up an impressive 28% year-over-year, while free cash flow grew 31% to $12.4 billion[1]. This represents the highest cash flow in Salesforce’s company history, underscoring the company’s ability to convert revenue into tangible shareholder value. The total remaining performance obligation—a key indicator of future revenue—reached $63.4 billion, up 11% year-over-year, providing strong visibility into upcoming quarters[1].
## AI and Data Cloud Drive Growth
A significant portion of Salesforce’s growth momentum comes from its strategic focus on artificial intelligence and data capabilities. The company’s Data Cloud and AI annual recurring revenue reached $900 million, representing a remarkable 120% year-over-year increase[1]. Data Cloud itself surpassed 50 trillion records, doubling year-over-year and showcasing the massive scale of data processing Salesforce now handles for enterprise customers[1].
The company’s Agentforce offering, which leverages AI to automate business processes, has gained substantial traction in the market. Since October 2024, Salesforce closed 5,000 Agentforce deals, including more than 3,000 paid deals, demonstrating strong customer demand for AI-powered automation solutions[1]. Notably, nearly half of the Fortune 100 companies are now both AI and Data Cloud customers, with all of Salesforce’s top 10 wins in Q4 including Data and AI components[1].
## Forward-Looking Guidance Exceeds Expectations
Perhaps most significantly, Salesforce issued forward guidance for fiscal year 2026 that demonstrates the company’s confidence in sustained growth. The company initiated revenue guidance of $40.5 billion to $40.9 billion, representing 7% to 8% year-over-year growth in both reported and constant currency terms[1]. Subscription and support revenue is expected to grow approximately 8.5% year-over-year, with approximately 9% growth in constant currency[1].
Operating margin guidance also reflects operational efficiency improvements. Salesforce projects a GAAP operating margin of 21.6% and a non-GAAP operating margin of 34.0% for fiscal 2026[1]. Additionally, the company expects operating cash flow to grow approximately 10% to 11% year-over-year, continuing the impressive cash generation trajectory established in fiscal 2025[1].
## Geographic Strength and Shareholder Returns
Salesforce’s growth proved geographically diverse during the fourth quarter. In the Americas, the company grew revenue 8% year-over-year, while Europe, the Middle East and Africa (EMEA) saw 6% year-over-year growth[3]. Asia-Pacific (APAC) demonstrated particularly strong performance with 10% year-over-year revenue growth, highlighting the company’s global expansion efforts[3].
The company also demonstrated strong commitment to returning capital to shareholders. In fiscal 2025, Salesforce returned $7.8 billion through share repurchases and $1.5 billion in dividend payments, totaling $9.3 billion in shareholder returns[1]. This represents a balanced approach to capital allocation, combining growth investments with direct returns to investors.
## Leadership Perspective
Marc Benioff, Chair and CEO of Salesforce, characterized the results as exceptional: “We had an incredible quarter and year, with strong performance across all our key metrics, including the highest cash flow in our company’s history and more than $60 billion in RPO[1].” Benioff emphasized Salesforce’s competitive positioning in the emerging “digital labor revolution,” highlighting the company’s unified platform that integrates Customer 360 applications, Data Cloud, and Agentforce to deliver productivity and cost savings for customers[1].
## Conclusion
Salesforce’s fiscal 2025 results and forward guidance demonstrate that the company has successfully navigated the competitive enterprise software landscape while capitalizing on the artificial intelligence opportunity. The combination of strong cash generation, robust recurring revenue growth, and impressive AI and data platform adoption positions Salesforce well for continued success. With revenue guidance suggesting 7-8% growth for fiscal 2026 and continued margin expansion, investors and customers alike have reasons for optimism about the company’s trajectory. As enterprises increasingly prioritize AI-driven automation and data intelligence, Salesforce appears well-positioned to capture significant market share in this transformation.
Original source: CNBC Business – Salesforce beats on earnings, issues better-than-expected revenue forecast