Informatica Reports 4% Revenue Growth to $439.2 Million in Q3 2025

Informatica Inc. reported a total revenue of $439.2 million for the third quarter of 2025, marking a 4% increase from $422.5 million in the same period last year. The growth was primarily driven by a significant rise in subscription revenue, which reached $320.7 million, up 11% from $287.9 million in the prior year. For the nine months ending September 30, 2025, total revenue increased to $1.25 billion, compared to $1.21 billion in the same period of 2024. The company’s net income for the quarter was $4.0 million, a notable recovery from a loss of $14.0 million in the previous year, while net income for the nine months was $689,000, compared to $177,000 in 2024.

Informatica's financial performance reflects a strategic shift towards cloud-based offerings, with cloud subscription revenue increasing by 31% year-over-year. This growth is attributed to the company's transition to a cloud-only, consumption-driven strategy, which has led to a decrease in self-managed subscription support and maintenance revenues. The company reported a 12% decline in maintenance and professional services revenue, totaling $118.5 million for the quarter, down from $134.5 million in the previous year. The decrease in maintenance revenue is expected to continue as the company phases out perpetual licenses.

Operationally, Informatica has seen a rise in its customer base, with a Cloud Subscription Net Retention Rate of 120% for the nine months ended September 30, 2025, down from 126% in the previous year. The company continues to focus on expanding its footprint within existing customers through upselling and cross-selling strategies. As of September 30, 2025, Informatica had approximately 2,045 employees, reflecting a slight increase from the previous year, as the company invests in its workforce to support growth initiatives.

Informatica is also navigating a significant merger with Salesforce, announced on May 26, 2025. The merger is expected to close in the fourth quarter of Salesforce's fiscal year 2026 or early in fiscal year 2027, pending regulatory approvals. The merger agreement has been approved by both companies' boards and major shareholders, eliminating the need for further stockholder approval. The company incurred $2.1 million in costs related to the merger during the third quarter, which are reflected in its financial statements.

Looking ahead, Informatica anticipates continued growth in its cloud subscription offerings, driven by the increasing demand for data management solutions as businesses undergo digital transformation. However, the company also faces challenges from macroeconomic factors, including interest rate volatility and geopolitical tensions, which may impact customer purchasing behavior. Informatica remains focused on enhancing its product offerings and expanding its market presence to capitalize on the growing demand for cloud-based data management solutions.