Salesforce, Inc. Q4 FY2025 earnings call

Key Points - Marc Benioff emphasized it was the best quarter ever, with $10 billion Q4 revenue, over 400 deals over $1 million, and Data Cloud surpassing 50 trillion records. Agentforce was deployed by thousands of brands like Lennar, Pandora, Pfizer. - Brian Millham discussed Agentforce's impact, such as OpenTable handling 73% of restaurant web queries in 3 weeks, Goodyear using Agentforce for sales automation, and Salesforce's own business seeing 380,000 service requests handled by Agentforce with 84% resolution rate. - Amy Weaver highlighted full-year revenue of $37.9 billion, 9% growth in constant currency, non-GAAP operating margin of 33%, and RPO surpassing $60 billion.

For the full year 2025, Salesforce achieved $37.9 billion in revenue, up 9% year-over-year. Q4 revenue was $10 billion, up 8% year-over-year. Data Cloud and AI annual recurring revenue ended the year at $900 million, growing nearly 120% year-over-year. Agentforce had over 3,000 paying customers within 90 days of launch. RPO passed $60 billion for the first time, with Q4 RPO reaching $63.4 billion, up 11% year-over-year. Current RPO (cRPO) ended at $30.2 billion, an increase of 9% year-over-year in nominal currency, driven by strong performance in Data Cloud and AI and Slack.

Fiscal 2026 Guidance - Revenue expected to be $40.5 billion to $40.9 billion, growth of approximately 7% to 8% year-over-year in nominal and constant currency. - Subscription and Support revenue expected to grow approximately 9% year-over-year in constant currency. - Q1 2026 revenue guidance: $9.71 billion to $9.76 billion, up 6% to 7% year-over-year in nominal and 7% in constant currency. cRPO growth for Q1 expected to be approximately 10% year-over-year in nominal, inclusive of a $100 million FX headwind.

Q: Keith Weiss from Morgan Stanley asked about the pricing model dynamics for Agentforce, specifically how it shifts from seat-based to consumptive and its impact on contract size.

A: Marc Benioff and Brian Millham discussed that it's a mix of pricing models, with customers seeing ROI from Agentforce, and moving towards Universal Credits for flexibility. The trinity of apps, data, and agents is key.

Q: Kirk Materne from Evercore ISI inquired about the halo effect of Agentforce on other products.

A: Brian Millham responded that Agentforce has a halo effect, making core apps better by providing intelligence, as seen in examples like Lennar where it flows into their Salesforce automation system.

Q: Raimo Lenschow from Barclays asked about combining COFO roles and its impact.

A: Marc Benioff talked about being excited to have Robin Washington as COFO, emphasizing her unique capability to handle both roles, and the rebalancing of the management team with new executives like Miguel Milano and Robin.

Q: Brent Thill from Jefferies asked about labor arbitrage and its application to Salesforce and government agencies.

A: Marc Benioff discussed how Salesforce is seeing efficiency with Agentforce, rebalancing workforce, and the potential of digital labor to drive productivity as the global human workforce is stagnant.

Q: Kash Rangan from Goldman Sachs asked about the SaaS tech stack in the agentic world.

A: Marc Benioff stated that Salesforce's holy trinity of apps, data, and agents works together, with evidence like 380,000 conversations on help.salesforce.com with 84% resolution rate, warning to beware of false agents and highlighting Salesforce's leadership in the digital labor revolution.