salesforce(US:CRM)2025-12-03 23:47Financial Performance - Revenue for the nine months ended October 31, 2025, was $30.3 billion, an increase of 9% year-over-year [154]. - Income from operations for the same period was $6.5 billion, with an operating margin of approximately 22%, up from 19% in the prior year [154]. - Diluted net income per share for the nine months ended October 31, 2025, was $5.73, compared to $4.60 from a year ago [162]. - Total revenues for the three months ended October 31, 2025, were $10,259 million, representing a 9% increase from $9,444 million in the same period of 2024 [183]. - Net income for the three months ended October 31, 2025, was $2,086 million, or 20% of total revenues, compared to $1,527 million, or 16% of total revenues, in 2024 [183]. - Gross profit for the three months ended October 31, 2025, was $8,004 million, an increase from $7,339 million in 2024, maintaining a gross margin of 78% [183]. - For the nine months ended October 31, 2025, gross profit was $23.562 billion, compared to $21.476 billion for the same period in 2024, indicating a growth of approximately 9.7% [183]. Revenue Composition - Subscription and support revenues accounted for approximately 95% of total revenues for the nine months ended October 31, 2025 [159]. - Subscription and support revenues accounted for 95% of total revenues for the three months ended October 31, 2025, up from 94% in the same period of 2024 [186]. - Subscription and support revenues from the Agentforce 360 Platform, Slack, and other offerings grew by 19% for the three months ended October 31, 2025 [188]. Performance Obligations - Total remaining performance obligation as of October 31, 2025, was approximately $59.5 billion, an increase of 12% year-over-year [162]. - Current remaining performance obligation was approximately $29.4 billion, an increase of 11% year-over-year [162]. - Remaining performance obligation as of October 31, 2025, was $59.5 billion, down from $63.4 billion as of January 31, 2025 [184]. Cash Flow and Investments - Cash provided by operations for the nine months ended October 31, 2025, was $9.5 billion, an increase of 4% year-over-year [162]. - Net cash provided by operating activities for the nine months ended October 31, 2025, was $9,532 million, an increase from $9,122 million in the same period of 2024 [209]. - The net cash used in financing activities during the nine months ended October 31, 2025, was primarily related to $8.7 billion for repurchases of common stock [214]. - The company reported gains on strategic investments of $263 million for the three months ended October 31, 2025, a significant increase of $480 million compared to the previous year [201]. - The net cash provided by investing activities during the nine months ended October 31, 2025, was primarily related to net inflows from marketable securities activity of $2.9 billion [212]. Share Repurchase and Dividends - The company repurchased approximately 33 million shares for approximately $8.7 billion during the nine months ended October 31, 2025 [162]. - The company announced dividends of $0.416 per share for the quarters ended April 30, July 31, and October 31, 2025, totaling $1.21 billion in dividends for fiscal 2026 [223]. - The company authorized an additional $20.0 billion for its Share Repurchase Program in September 2025, bringing the total authorized amount to $50.0 billion [221]. Expenses and Cost Management - Operating expenses for the three months ended October 31, 2025, totaled $5,816 million, compared to $5,446 million in 2024, representing a 7% increase [183]. - Research and development expenses for the three months ended October 31, 2025, were $1,433 million, maintaining 14% of total revenues, with a $77 million increase from the previous year [195]. - Sales and marketing expenses for the three months ended October 31, 2025, were $3,456 million, accounting for 34% of total revenues, a decrease of approximately 1% compared to the same period in 2024 [197]. - General and administrative expenses for the three months ended October 31, 2025, were $667 million, decreasing by approximately 2% as a percentage of total revenues compared to the same period in 2024 [199]. - The company continues to focus on reducing operating expenses to improve operating margins, including workforce reductions and office space optimization [153]. Acquisitions - The acquisition of Informatica was completed in November 2025 for approximately $9.6 billion, enhancing the company's AI capabilities [162]. - The company acquired Informatica for approximately $9.6 billion in November 2025, primarily funded by $6.0 billion from Informatica Credit Agreements [227]. - In November 2025, the company acquired Informatica, an AI-powered enterprise cloud data management platform, for approximately $9.6 billion, mainly in cash [227]. Debt and Financing - As of October 31, 2025, the company had senior unsecured debt outstanding with a total carrying value of $8.4 billion, maturing between April 2028 and July 2061 [216]. - The company entered into a $5.0 billion Revolving Loan Credit Agreement in October 2024, maturing in October 2029, with no outstanding borrowings as of October 31, 2025 [218]. - The company may seek additional equity or debt financing for future acquisitions or investments, which may not be available on favorable terms [207]. Future Outlook and Strategy - The company plans to continue investing in enterprise cloud computing services, which may cause fluctuations in cost of revenues as a percentage of revenues over time [193]. - The company plans to invest approximately $160 million to $180 million in future cash payments related to restructuring initiatives, primarily for workforce costs such as severance payments [226]. - The company is making additional investments in enterprise cloud computing services to scale with customers and enhance security measures [225]. - Future investments in infrastructure may be adjusted, with a potential slowdown in the pace of these investments [225]. - The company aims to satisfy future cash obligations primarily with cash on its balance sheet and cash generated from operating activities [226]. Sustainability and Transparency - The company has published an annual Stakeholder Impact Report for over ten years to maintain transparency and accountability to stakeholders [228]. - The company emphasizes the importance of transparency in building trust with stakeholders [228]. - The company’s sustainability and impact strategies are informed by third-party ESG reporting organizations and standards [228].