CRM · Forward model · Professional services and other
What has to happen in Professional services and other
Model as of
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Professional services and other
Basis quarter$525M
Final quarter$465M
Implied CAGR−2%
Final revenue mix3%
Implementation, consulting and training. Under 5% of revenue, shrinking in absolute terms, and reported at a gross loss every quarter - it exists to land and expand the subscription business rather than to earn.
Last four quarters
2025 Q4
$533M
Reported
2026 Q1
$526M
Reported
2026 Q2
$540M
Reported
2026 Q3
$525M
Reported
Implementation and consultingTraining
Sequential growth
−1.0%/qtr
decaying toward −0.3%
Revenue fell from $597M to $525M across the thirteen reported quarters, 1.07% a quarter compounded; the trailing four quarters ($546M to $525M) run 0.98%. Moved from 0.7% to 1.0%, the round number between them, because the published 0.7% no longer matched its own rationale text or the arithmetic.
Professional services and other
Latest: $465M (2031Q3E)
| Period | Value |
|---|---|
| 2023Q3 | $597M |
| 2023Q4 | $579M |
| 2024Q1 | $539M |
| 2024Q2 | $548M |
| 2024Q3 | $561M |
| 2024Q4 | $565M |
| 2025Q1 | $542M |
| 2025Q2 | $532M |
| 2025Q3 | $546M |
| 2025Q4 | $533M |
| 2026Q1 | $526M |
| 2026Q2 | $540M |
| 2026Q3 | $525M |
| 2026Q4E | $520M |
| 2027Q1E | $515M |
| 2027Q2E | $510M |
| 2027Q3E | $506M |
| 2027Q4E | $502M |
| 2028Q1E | $499M |
| 2028Q2E | $496M |
| 2028Q3E | $492M |
| 2028Q4E | $489M |
| 2029Q1E | $487M |
| 2029Q2E | $484M |
| 2029Q3E | $481M |
| 2029Q4E | $479M |
| 2030Q1E | $477M |
| 2030Q2E | $475M |
| 2030Q3E | $472M |
| 2030Q4E | $470M |
| 2031Q1E | $468M |
| 2031Q2E | $467M |
| 2031Q3E | $465M |
Assumptions & reasoning
- This line runs a gross LOSS every quarter and the loss got materially worse: negative 19.6% in the basis quarter against negative 14.3% in April. Cost of revenues of $628M against $525M of revenue - revenue fell 3.8% year on year while the cost of delivering it rose 5.2%. That is REPORTED on both lines, not assumed, and it is why the model carries this business separately rather than folding it into subscription.
- The terminal margin is left at negative 5.0%, which the print now argues against: the basis quarter is 5.3 points worse than the last one, so the glide has further to travel and starts from a worse place. Nothing in the release says the delivery cost base is being fixed, and one quarter is not a trend, so the terminal is not moved - but if the next print prints another sub-negative-19% quarter, the negative 5.0% terminal is the assumption to re-cut.
- It is under 5% of revenue and shrinking, so it moves the fair value very little; it is kept because Salesforce reports it and removing it would break the reconciliation to consolidated revenue.
- Growth is the honest driver: Salesforce publishes no engagement count, utilisation rate or day rate for this business.