- Salesforce Inc’s 4Q adjusted EPS was $2.78, exceeding both the previous year’s $2.29 and the estimate of $2.61.
- The company reported revenue of $9.99 billion, a 7.6% increase year-over-year, slightly below the $10.04 billion estimate.
- Revenue growth on a constant currency basis was 9%, surpassing the estimated 8.41%.
- Subscription and support revenue stood at $9.45 billion, growing by 8% year-over-year, slightly under the $9.52 billion estimate.
- Sales growth of 8.4% resulted in $2.13 billion, just below the estimate of $2.17 billion.
- Service revenue grew by 7.8% to $2.33 billion, falling short of the $2.37 billion estimate.
- Professional services and other revenue marginally increased by 0.6% to $542 million, surpassing the estimate of $525.9 million.
- Unearned revenue at the end of the period was $20.74 billion, a 9.2% increase year-over-year, slightly above the $20.71 billion estimate.
- Adjusted income from operations was $3.30 billion, a 13% increase year-over-year, in line with the $3.29 billion estimate.
- The adjusted operating margin improved to 33.1% from the previous year’s 31.4%, exceeding the estimate of 32.8%.
- Free cash flow remarkably increased by 17% to $3.82 billion, surpassing the estimate of $3.49 billion.
- Amy Weaver, President and CFO, highlighted strong results, with record-breaking revenue, margin, and cash flow, as a solid foundation for FY26.
- The outlook regarding stock is positive, with 46 analysts rating it as a buy, 10 as hold, and 2 as sell.
Salesforce.Com Inc on Smartkarma
Analyst Coverage on Salesforce.Com Inc
Analysts on Smartkarma, such as Baptista Research and Value Investors Club, have been closely monitoring Salesforce.Com Inc. Baptista Research recently highlighted Salesforce’s notable third-quarter performance for fiscal 2025, emphasizing strengths and emerging opportunities amid challenges in transitioning to newer markets. This performance showcased an 8% year-over-year revenue increase, driven by solid growth in core segments like the Sales and Service Clouds.
Baptista Research also expressed optimism in another report on Salesforce, citing enhanced product offerings and vertical integration as key drivers. Meanwhile, Value Investors Club noted a decline in Salesforce’s stock price, presenting a potential buying opportunity for investors despite challenges in the post-Covid buying environment. With a strong core business and potential for future productivity improvements, analysts foresee Salesforce as a compelling long-term investment with growth prospects.
A look at Salesforce.Com Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
Based on the Smartkarma Smart Scores, Salesforce.Com Inc showcases promising long-term potential. With a high Growth score of 5, the company is positioned for substantial expansion. This signifies strong prospects for future revenue and market development. Moreover, Salesforce.Com Inc demonstrates a solid Resilience score of 4, indicating its ability to navigate challenges and maintain stability in varying market conditions. Combined with a Momentum score of 4, reflecting the company’s positive stock price trend, Salesforce.Com Inc shows momentum in its market performance.
Overall, Salesforce.Com Inc, a global provider of customer relationship management services, continues to innovate and expand its technology platform. With a Value score of 2, the company presents a good value proposition to investors, alongside a Dividend score of 2. Investors seeking growth opportunities may find Salesforce.Com Inc to be an attractive choice, given its strong Growth, Resilience, and Momentum scores, highlighting a positive outlook for the company’s future performance and market positioning.
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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