Investment Rating - The investment rating for Salesforce (CRM) is "Buy" (maintained) [1] Core Insights - In FY25Q4, Salesforce reported a revenue of $9.99 billion, a year-over-year increase of 7.6%, exceeding consensus expectations by 0.3%. Subscription revenue was $9.45 billion, up 8.0% year-over-year, but slightly below expectations by 0.7%. Net profit reached $1.71 billion, a year-over-year increase of 18.1%, surpassing expectations by 8.2%. The non-GAAP operating margin was 33.1%, an increase of 1.7 percentage points year-over-year [3][4][5] - The company's Remaining Performance Obligations (RPO) reached a record high of $63.4 billion, growing 11.4% year-over-year, exceeding expectations by 2.3%. The current RPO (cRPO) was $3.2 billion, up 6.4% year-over-year, also surpassing expectations by 1.4% [5] - Salesforce continues to strengthen its AI capabilities, with over 3,000 paid customers for AgentForce and more than 400 orders exceeding $1 million. The company signed a cloud computing partnership with Alphabet, allowing its customers to run CRM software on Google Cloud [4][6] Financial Performance - For FY2025, Salesforce's revenue is projected to be $37.895 billion, with a year-over-year growth of 8.7%. The non-GAAP net profit is expected to be $9.93 billion, reflecting a year-over-year increase of 22.8% [10][12] - The company has lowered its guidance for Q1 and the full year of FY26, expecting Q1 revenue between $9.71 billion and $9.76 billion, a year-over-year growth of 6%-7%, below market expectations of $9.91 billion. The full-year revenue forecast is $40.5 billion to $40.9 billion, a year-over-year increase of 7%-8%, also below market expectations of $41.5 billion [6][7] Valuation Metrics - The projected non-GAAP net profits for FY26, FY27, and FY28 are $10.678 billion, $11.904 billion, and $12.809 billion, respectively, with year-over-year growth rates of 7.5%, 11.5%, and 7.6%. The corresponding price-to-earnings (P/E) ratios are 27.5, 24.7, and 23.0 [7][10][12]

Investment Rating - The investment rating for Salesforce (CRM) is "Buy" (maintained) [1] Core Insights - In FY25Q4, Salesforce reported a revenue of $9.99 billion, a year-over-year increase of 7.6%, exceeding consensus expectations by 0.3%. Subscription revenue reached $9.45 billion, growing 8.0% year-over-year, but fell short of expectations by 0.7%. Net profit for the quarter was $1.71 billion, up 18.1% year-over-year, surpassing expectations by 8.2%. The non-GAAP operating margin was 33.1%, an increase of 1.7 percentage points year-over-year [3][4] - The company's Remaining Performance Obligations (RPO) reached a record high of $63.4 billion, growing 11.4% year-over-year, exceeding expectations by 2.3%. The current RPO (cRPO) segment was $3.2 billion, up 6.4% year-over-year, also surpassing expectations by 1.4% [5] - Salesforce continues to strengthen its AI capabilities, with over 3,000 paid customers for AgentForce and more than 400 orders exceeding $1 million. The company signed a cloud computing partnership with Alphabet, allowing its customers to run CRM software on Google Cloud, marking a shift from reliance on Amazon's cloud services [4][6] Financial Performance Summary - For FY2025, Salesforce's revenue is projected at $37.895 billion, with a year-over-year growth of 8.7%. The non-GAAP net profit is expected to be $9.93 billion, reflecting a 22.8% increase year-over-year. The gross margin is forecasted at 77.2% [10][12] - The company has revised its guidance for Q1 and the full year of FY26, expecting Q1 revenue between $9.71 billion and $9.76 billion, a year-over-year growth of 6%-7%, below market expectations of $9.91 billion. The full-year revenue forecast is $40.5 billion to $40.9 billion, a growth of 7%-8%, also below market expectations of $41.5 billion [6][7] Investment Recommendations - The report anticipates non-GAAP net profits for FY26, FY27, and FY28 to be $10.68 billion, $11.90 billion, and $12.81 billion, respectively, with year-over-year growth rates of 7.5%, 11.5%, and 7.6%. The corresponding price-to-earnings (P/E) ratios are projected to be 27.5, 24.7, and 23.0 [7][10]