Sector: Information Technology | Focus: Application Software
HQ: San Francisco, California
Financial Risks
Salesforce faces risks from security breaches, service disruptions, customer attrition, competition, international operations, volatile markets, debt obligations, lease commitments, accounting changes, and stock price fluctuations. Acquisitions present integration challenges and potential liabilities. Economic downturns, natural disasters, and geopolitical events also pose risks. The company's reliance on third-party providers and the Internet's infrastructure introduces further vulnerabilities. Uncertainties in the valuation of strategic investments and the impact of evolving regulations (especially data privacy) are also significant concerns.
Financial Upside
Salesforce's revenue increased 9% year-over-year in the first nine months of fiscal 2025, driven by new business and customer upgrades. Operating margin improved to 19% from 13% in the same period. Cash provided by operations increased 34%. Remaining performance obligation grew 10%. Share repurchases and dividend payments were also substantial. The company's AI offerings (Agentforce) and investments in generative AI are expected to drive future growth.
