Salesforce reports over $60 billion in remaining performance obligations

Salesforce reports over $60 billion in remaining performance obligations

Salesforce (NYSE: CRM) recently reported its fourth-quarter and fiscal year 2025 results, showcasing robust growth and significant achievements. The company's revenue for Q4 reached $10.0 billion, marking an 8% increase year-over-year (YoY). For the entire fiscal year, Salesforce generated $37.9 billion in revenue, a 9% YoY increase. Subscription & support revenue accounted for $35.7 billion of the total revenue.

Key highlights from the report include Salesforce's Total Remaining Performance Obligation (TRPO), which stood at $63.4 billion, up 11% YoY. The company's operating cash flow surged 28% YoY to $13.1 billion, while free cash flow jumped 31% YoY to $12.4 billion. Salesforce returned $9.3 billion to stockholders in FY25 through share repurchases and dividend payments.

Salesforce's Data Cloud & AI segment experienced remarkable growth, with annual recurring revenue (ARR) reaching $900 million, up 120% YoY. The company closed 5,000 deals for its Agentforce product since October. Furthermore, nearly half of the Fortune 100 companies have adopted Salesforce's AI and Data Cloud solutions.

For FY26, Salesforce projects revenue between $40.5-40.9 billion, representing a 7-8% growth rate. The company expects a GAAP operating margin of 21.6% and a non-GAAP operating margin of 34.0%. Despite the deceleration in revenue growth compared to FY25, management's conservative approach likely reflects macroeconomic uncertainties rather than fundamental business challenges.

Salesforce's impressive financial performance in FY25, with revenue growth and substantial profitability improvements, is a testament to the company's operational efficiency and strong underlying business fundamentals. The company's traction in AI and Data Cloud, coupled with its substantial customer base, positions Salesforce well for continued growth and success in the future.