Executive Summary
Salesforce Inc (CRM.BA) delivered a solid QQ2 2025 performance characterized by continued topline growth, a high gross margin, and healthy cash generation. Revenue reached USD 9.325 billion, up 8.39% year over year and 2.10% quarter over quarter, supported by a diversified product portfolio including Sales, Service, Marketing, Commerce, Tableau, Slipstream AI capabilities, and cross-sell opportunities across the Customer 360 platform. Gross profit was USD 7.166 billion (gross margin ~76.85%), while operating income stood at USD 1.783 billion (operating margin ~19.12%), driving a net income of USD 1.429 billion (net margin ~15.32%) and diluted EPS of USD 1.47. The company generated USD 0.892 billion of operating cash flow and USD 0.755 billion of free cash flow, underscoring strong liquidity. Salesforce repurchased USD 4.335 billion of its stock, contributing to a substantial financing activity setback (net cash used for financing of USD 5.802 billion) that more than offset positive operating cash flow and investing activities. Cash and cash equivalents ended at USD 7.682 billion, with net debt of USD -3.711 billion, reflecting a solid balance sheet buffer amid ongoing investments.
Key takeaways for investors are: (1) the topline trajectory remains favorable within a SaaS framework, (2) profitability metrics show durable operating leverage with heavy investments in R&D and go-to-market activities, (3) cash generation supports optionality for buybacks and strategic acquisitions, and (4) balance sheet strength provides resilience against macro volatility. Going forward, the company’s ability to monetize AI enhancements, sustain renewal/run-rate growth, and efficiently scale operating expenses will be critical to upholding margin expansion and long-term FCF growth.
Key Performance Indicators
Key Insights
Revenue: USD 9.325B; YoY growth 8.39%; QoQ growth 2.10%
Gross Profit: USD 7.166B; Gross Margin 76.85%
Operating Income: USD 1.783B; Operating Margin 19.12%
Net Income: USD 1.429B; Net Margin 15.32%
EPS (diluted): USD 1.47; EPS (GAAP): USD 1.48
EBITDA: USD 2.789B; EBITDA Margin 29.91%
Weighted Average Shares (diluted): 973M
Operating Cash Flow: USD 0.892B
Free Cash Flow: USD 0.755B
Net Cash Used in Financing Activities: USD -5.802B
Cash at End of Period: USD 7.682B
Total Assets: USD 92.18B; Total...
Financial Highlights
Revenue: USD 9.325B; YoY growth 8.39%; QoQ growth 2.10%
Gross Profit: USD 7.166B; Gross Margin 76.85%
Operating Income: USD 1.783B; Operating Margin 19.12%
Net Income: USD 1.429B; Net Margin 15.32%
EPS (diluted): USD 1.47; EPS (GAAP): USD 1.48
EBITDA: USD 2.789B; EBITDA Margin 29.91%
Weighted Average Shares (diluted): 973M
Operating Cash Flow: USD 0.892B
Free Cash Flow: USD 0.755B
Net Cash Used in Financing Activities: USD -5.802B
Cash at End of Period: USD 7.682B
Total Assets: USD 92.18B; Total Liabilities: USD 34.547B; Total Stockholders’ Equity: USD 57.633B
Total Current Assets: USD 21.862B; Total Current Liabilities: USD 21.001B
Deferred Revenue (current/non-current): USD 15.222B; Long-term Debt: USD 10.834B; Total Debt: USD 11.393B; Net Debt: USD -3.711B (net cash position)
Gross Margin: ~76.85%; Operating Margin: ~19.12%; Net Margin: ~15.32%
Debt/Equity: ~0.198x; Current Ratio: ~1.04x; Cash Conversion Cycle: ~129 days
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.33B |
8.39% |
2.10% |
| Gross Profit |
7.17B |
10.42% |
2.80% |
| Operating Income |
1.78B |
20.80% |
4.33% |
| Net Income |
1.43B |
12.79% |
-6.78% |
| EPS |
1.48 |
13.85% |
-6.33% |
Key Financial Ratios
operatingProfitMargin
19.1%
operatingCashFlowPerShare
$0.93
freeCashFlowPerShare
$0.78
dividendPayoutRatio
26.9%
Management Commentary
Note: No earnings call transcript data was provided in the materials. As a result, there are no management quotes or verbatim commentary to quote or summarize by theme. If a transcript becomes available, the highlights would typically cover: strategy execution around AI-enabled products and data platform expansion (e.g., AI features within Sales/Service/Marketing, Tableau, MuleSoft integrations), progress on lifecycle monetization of Slack and broader Customer 360 adoption, go-to-market efficiency, renewal/retention metrics, and expectations for operating leverage given the current investment pace.
Forward Guidance
There is no explicit forward guidance disclosed within the provided data. Based on the QQ2 2025 performance, Salesforce exhibits solid topline growth with expanding gross margins and positive operating cash flow, suggesting potential for continued profitability expansion as the company scales its AI-enabled offerings and optimizes go-to-market efficiency. Our qualitative assessment highlights key drivers and risks to watch: AI-driven product monetization (pricing discipline and upsell/cross-sell across CRM, Slack, Tableau, MuleSoft), renewal rates and net retention, operating expense discipline (R&D and SG&A as growth levers versus margin expansion), macro volatility and enterprise budget cycles, and competitive dynamics from major cloud vendors. Potential targets to monitor include: lift in ARR/CPR (customer retention and average contract value), improvements in operating margin through leverage on scalable infrastructure, and free cash flow trajectory given ongoing buyback activity and potential capex for strategic initiatives.