Salesforce Announces Third Quarter Fiscal 2025 Financial Results
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Salesforce Announces Third Quarter Fiscal 2025 Financial Results
Salesforce (NYSE: CRM), the leading provider of AI CRM solutions, released its financial results for the third quarter of fiscal 2025 ending October 31, 2024.
Key Financial Metrics
| Metric | Q3 2025 | Year-over-Year (Y/Y) Change | Consensus Estimate | Performance Compared to Estimate |
|---|---|---|---|---|
| Total Revenue | $9.44 Billion | +8% | $9.35 Billion | Above expectations |
| Non-GAAP EPS | $2.41 | - | $2.45 | Slightly below expectations |
Salesforce reported robust revenue growth this quarter, with total revenue surpassing consensus expectations by $90 million, demonstrating strong market demand and effective execution of its strategy. However, non-GAAP EPS slightly fell short of estimates, impacted by strategic investment losses.
Revenue Performance by Segment
| Segment | Revenue (Q3 2025) | Y/Y Change | Guidance Comparison |
|---|---|---|---|
| Subscription & Support | $8.88 Billion | +9% | On target |
All major segments performed well, consistent with or exceeding prior guidance targets. Subscription and support services continue to act as a growth driver, emphasizing Salesforce's effective product strategy.
Operational Highlights
- Current Remaining Performance Obligation (cRPO) increased to $26.4 billion, marking a 10% improvement year-over-year.
- Operating cash flow rose to $1.98 billion, a 29% increase year-over-year.
- Free cash flow climbed to $1.78 billion, showing a 30% rise year-over-year.
- Capital returned to shareholders through $1.2 billion in share repurchases and $0.4 billion in dividends, totaling $1.6 billion for the quarter.
Executive Commentary
Marc Benioff, Salesforce's Chair and CEO, highlighted the significant role of Agentforce, the company’s integrated AI system, in transforming enterprise operations and digital labor. CFO Amy Weaver noted disciplined profitable growth, with notable GAAP operating margin improvement of 280 basis points year-over-year.
Shareholder Returns and Forward Guidance
Salesforce returned substantial capital to shareholders in the form of share repurchases and dividends. Additionally, the company has announced its fiscal year 2025 guidance, projecting fourth-quarter revenue of $9.90 billion to $10.10 billion, continuing its trajectory of strong growth.
Stock Price Movement
Following the earnings release, Salesforce shares marked a minor post-event percentage change of 0.11%.
Salesforce's third-quarter results reflect a balanced and strategic approach toward achieving consistent growth, underscoring its continued leadership in AI-driven CRM solutions and its commitment to generating shareholder value.
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