- Salesforce Inc reports adjusted EPS of $2.56, beating the estimate of $2.35 and last year’s $2.12.
- Revenue hits $9.33 billion, an increase of 8.4% year-over-year (y/y), surpassing the estimate of $9.23 billion.
- Subscription and support revenue totals $8.76 billion, up 9.5% y/y, exceeding the $8.7 billion estimate.
- Sales revenue reaches $2.07 billion, marking a 9.3% y/y growth and beating the $2.01 billion estimate.
- Service revenue rises to $2.26 billion, a 10% y/y increase, exceeding the $2.21 billion estimate.
- Professional services and other revenue decrease by 6% y/y to $561 million but still surpass the $531.9 million estimate.
- Unearned revenue at the end of the period stands at $15.22 billion, slightly above the estimate of $15.17 billion.
- Adjusted income from operations grows by 16% y/y to $3.14 billion, surpassing the $2.96 billion estimate.
- The adjusted operating margin improves to 33.7%, up from 31.6% y/y, beating the 32% estimate.
- Free cash flow is $755 million, up 20% y/y but below the $865.9 million estimate.
- Third Quarter FY25 revenue guidance is between $9.31 billion and $9.36 billion, reflecting a 7% y/y increase.
- Full Year FY25 revenue guidance remains at $37.7 billion to $38.0 billion, representing an 8%-9% y/y growth.
- Full Year FY25 subscription and support revenue growth guidance is maintained at slightly below 10% y/y and approximately 10% in constant currency.
- Full Year FY25 GAAP operating margin guidance is updated to 19.7%, and non-GAAP operating margin guidance is updated to 32.8%.
- Salesforce has 39 buy ratings, 14 hold ratings, and 1 sell rating.
Salesforce.Com Inc on Smartkarma
Analyst coverage on Smartkarma for Salesforce.com Inc. showcases a positive sentiment towards the company’s performance and strategic moves. According to Tech Supply Chain Tracker, AI advancements are driving sustainability and innovation, although they come with environmental risks. Major tech players like Nvidia, AMD, Google, and Apple are heavily investing in AI technologies, signaling a positive outlook for the industry. This research also highlights Google’s substantial investment in expanding its Singapore Data Center and Cloud Region campus, along with Apple’s introduction of VisionOS for spatial computing.
Baptista Research reports on Salesforce.com Inc. underscore the company’s robust financials, with revenue growth of 11% year-over-year in Q1 2025, amounting to $9.13 billion. Salesforce Inc. continues to lead the CRM market worldwide and is actively driving transformation in artificial intelligence. The company’s strategic acquisitions and focus on enhancing offerings are also noted, indicating a strong growth trajectory. With consistent revenue guidance and positive performance metrics, Salesforce.com Inc. appears to be well-positioned for future success in the industry.
A look at Salesforce.Com Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilizing the Smartkarma Smart Scores to assess Salesforce.Com Inc‘s long-term outlook have rated the company favorably across multiple key factors. With a score of 4 for Resilience, the company showcases strong durability and a solid foundation to weather market fluctuations. Additionally, a Growth score of 3 indicates a promising trajectory for expansion and development in the future, reflecting positive potential for increased market share and profitability. Momentum, rated at 3, suggests that the company is currently on a positive track, exhibiting steady progress in its operations.
Furthermore, despite moderate scores in Value and Dividend at 2 each, Salesforce.Com Inc‘s core business model of providing software on demand for customer relationship management positions it well for sustained growth and innovation. As a leader in supplying technology platforms for businesses globally, the company plays a pivotal role in enabling customers and developers to create and operate essential business applications efficiently. Overall, Salesforce.Com Inc stands as a resilient and forward-looking player in the dynamic landscape of software services.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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