01—Abstract
Summary
Summary of the 10-Q filed September 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Salesforce, Inc. (CRM) reported solid financial results for the second quarter and first half of fiscal year 2025, demonstrating continued revenue growth and improved operational efficiency.
Total revenues increased by 10%a year-over-year for the quarter and 9% for the six-month period, primarily driven by strong performance in subscription and support services. The company also showed a significant improvement in operating margin, expanding to 23% for the quarter and 22% for the first half, up from 19% in the prior year periods, reflecting successful cost management initiatives and operational leverage. Key financial highlights include a healthy increase in net income and diluted earnings per share, underscoring the company's profitability.
Remaining Performance Obligation, a key indicator of future revenue, also saw robust growth, increasing by 12%b year-over-year. The company continues to actively manage its capital structure through share repurchases and dividend payments.
Notably, Salesforce announced a significant pending acquisition of Informatica Inc. for approximately $8 billionc, which is expected to further enhance its AI and data management capabilities. Despite a dynamic economic environment, Salesforce's resilient business model and strategic investments position it for continued growth and profitability.
02—Key points
Key Highlights
- Total revenues grew 10% year-over-year to $10.24 billion for the quarter and 9% to $20.07 billion for the first six months of fiscal 2025.
- Operating margin improved significantly, reaching 23% for the quarter and 22% for the six-month period, up from 19% in the comparable prior year periods.
- Net income increased to $1.89 billion ($1.96 diluted EPS) for the quarter and $3.43 billion ($3.55 diluted EPS) for the six months, showing strong profitability growth.
- Remaining Performance Obligation (RPO) increased by 12% year-over-year to $59.9 billion as of July 31, 2025, indicating strong future revenue potential.
- The company announced a pending acquisition of Informatica Inc. for approximately $8 billion, aimed at bolstering its AI and data management offerings.
- Cash provided by operating activities remained strong at $7.22 billion for the first six months of fiscal 2025, reflecting robust cash generation.
- Salesforce continued its capital return program, repurchasing approximately $4.9 billion of common stock and paying $801 million in dividends during the first six months of the fiscal year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Salesforce, Inc. kept $0.18.
- Revenue$10.24B100.0%
- Cost of revenue−$2.24B21.9%
- Gross profit$7.99B78.1%
- Operating costs−$5.66B55.3%
- Operating income$2.33B22.8%
- Interest, other & tax−$445.0M4.3%
- Net income$1.89B18.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed September 4, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $10.24B$9.32B | +9.8% |
| Cost of Revenue | $2.24B$2.16B | +3.8% |
| Gross Profit | $7.99B$7.17B | +11.6% |
| R&D Expenses | $1.48B$1.35B | +9.8% |
| Operating Expenses | $5.66B$5.38B | +5.2% |
| Operating Income | $2.33B$1.78B | +30.8% |
| Interest Expense | $67.00M$68.00M | −1.5% |
| Net Income | $1.89B$1.43B | +32.1% |
| EPS (Basic) | $1.97$1.48 | +33.1% |
| EPS (Diluted) | $1.96$1.47 | +33.3% |
| Shares Outstanding (Basic) | 956.00M964.00M | −0.8% |
| Shares Outstanding (Diluted) | 962.00M973.00M | −1.1% |
05—Questions
Frequently Asked Questions
What was Salesforce's revenue performance in the reported quarter and year-to-date?
For the three months ended July 31, 2025, Salesforce reported total revenues of $10.24 billion, an increase of 10% compared to the same period last year. For the six months ended July 31, 2025, total revenues were $20.07 billion, an increase of 9% year-over-year.
How did Salesforce's profitability evolve during this period?
Salesforce demonstrated improved profitability, with its operating margin increasing to 23% for the quarter and 22% for the six-month period, compared to 19% in the prior year. Net income for the quarter was $1.89 billion, translating to $1.96 diluted EPS, and for the six months was $3.43 billion, or $3.55 diluted EPS.
What are the key strategic initiatives or significant events mentioned in this filing?
A major strategic development is the announcement of Salesforce's pending acquisition of Informatica Inc. for approximately $8 billion. This acquisition is expected to enhance Salesforce's AI and enterprise cloud data management capabilities. Additionally, the company highlighted the introduction of 'Agentforce,' a new layer for its platform enabling companies to build and deploy AI agents.
How is Salesforce managing its cash flow and capital allocation?
The company generated $7.22 billion in cash from operating activities for the first six months of fiscal 2025. Salesforce also continued its share repurchase program, buying back approximately $4.9 billion of its common stock, and distributed $801 million in dividends during the same period, demonstrating a commitment to returning capital to shareholders.
06—Continue