Salesforce Q4 EPS Beats, Revenue Lags

From Nasdaq: 2025-02-26 17:26:18

Salesforce reported mixed Q4 FY25 earnings, exceeding EPS expectations at $2.78 but falling slightly short on revenue at $9.99 billion, up 8% YoY. Operational efficiency and cash flow improved, with a 16.7% jump in operating cash flow to $3.97 billion. Strategic AI partnerships, like with Google Cloud, drove growth in AI and Data Cloud revenue.

Salesforce’s Customer 360 platform offers comprehensive tools for unified customer experiences. AI innovation, showcased in Agentforce and Data Cloud platforms, led to significant growth. Q4 revenue increased by 8% YoY, with AI and Data Cloud sectors reporting a 120% surge in annual recurring revenue to $900 million. Salesforce aims for 7%-8% revenue growth in FY26.

Looking ahead, Salesforce projects revenue of $40.5 billion to $40.9 billion for FY26, with operating cash flows expected to increase by 10%-11%. Adjusted EPS for Q1 FY26 is estimated at $2.53 to $2.55, with revenue expected to reach $9.71 billion to $9.76 billion. Strategic AI initiatives, global market strategies, and profitability enhancements underpin Salesforce’s growth trajectory.



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