Salesforce Reports Record First Quarter Fiscal 2026 Results
Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its first quarter fiscal 2026 ended April 30, 2025. Results First quarter revenue of $9.8 billion, up 8% both year-over-year...
Exceeds Guidance Across All Metrics; cRPO up 12% Y/Y
SAN FRANCISCO: Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its first quarter fiscal 2026 ended April 30, 2025.
Results
- First quarter revenue of $9.8 billion, up 8% both year-over-year ("Y/Y") and in constant currency ("CC")
- First quarter subscription & support revenue of $9.3 billion, up 8% Y/Y and 9% in CC
- Current remaining performance obligation of $29.6 billion, up 12% Y/Y and 11% in CC
- First quarter GAAP operating margin of 19.8% and non-GAAP operating margin of 32.3%
- First quarter operating cash flow of $6.5 billion, up 4% Y/Y, and free cash flow of $6.3 billion, up 4% Y/Y
- Returned $3.1 billion to shareholders, including $2.7 billion in share repurchases and $402 million in dividends
“We delivered strong Q1 results and are raising our guidance by $400 million to $41.3 billion at the high end of the range,” said Marc Benioff, Chair and CEO, Salesforce. “We’ve built a deeply unified enterprise AI platform—with agents, data, apps, and a metadata platform—that is unmatched in the industry. With Agentforce, Data Cloud, our Customer 360 apps, Tableau, and Slack all built on one trusted, unified foundation, companies of every size can build a digital labor force—boosting productivity, reducing costs, and accelerating growth. And, with our agreement to acquire Informatica, we will bring together the industry’s leading AI CRM and AI-powered MDM and ETL platform to create the most complete, intelligent AI and data platform for the enterprise."
“I’m pleased by our momentum as we capitalize on the exciting agentic AI opportunity,” said Robin Washington, President and Chief Operating and Financial Officer, Salesforce. “Our Q1 performance reflects solid execution, driven by our continued focus on innovation, operational excellence, and maximizing value for our customers and shareholders."
Business Highlights
- Data Cloud and AI annual recurring revenue over $1 billion, up more than 120% Y/Y
- Nearly 60% of Q1 top 100 deals included Data Cloud and AI
- Salesforce has closed over 8,000 deals since launching Agentforce, of which half are paid
- On help.salesforce.com, Agentforce has handled over 750,000 requests, cutting case volume by 7% Y/Y
- Data Cloud ingested 22 trillion records in Q1, up 175% Y/Y
- More than half of Salesforce's Q1 Top 100 Deals included 6+ Clouds
Guidance
Yesterday, Salesforce announced that the Company signed a definitive agreement to acquire Informatica Inc. There is no anticipated impact to Salesforce’s FY26 guidance as a result of this transaction based on the expected close timing in early FY27.
With the U.S. dollar weakening in Q1, Salesforce now expects a currency tailwind for the business. This tailwind has been incorporated into the Company's updated FY26 guidance.
- Initiates second quarter FY26 revenue guidance of $10.11 billion to $10.16 billion, up 8% - 9% Y/Y and 7% - 8% in CC
- Raises full year FY26 revenue guidance to $41.0 billion to $41.3 billion, up 8% - 9% Y/Y and 8% in CC
- Maintains full year FY26 GAAP operating margin guidance of 21.6%, and non-GAAP operating margin guidance of 34.0%
- Maintains full year FY26 operating cash flow growth guidance of approximately 10% to 11% Y/Y
Salesforce's guidance includes GAAP and non-GAAP financial measures. The following tables summarize Salesforce's guidance for the second quarter fiscal 2026 and full-year fiscal 2026:
| Q2 FY26 Guidance | ||
| GAAP |
| Non-GAAP(1) |
Revenue | $10.11 - $10.16 billion |
|
|
Revenue growth(2) | 8% - 9% |
| 7% - 8% CC, $100M Y/Y FX |
Diluted net income per share | $1.80 - $1.82 |
| $2.76 - $2.78 |
Current remaining performance obligation growth(3) | Approximately 10% |
| Approximately 9% CC, $300M Y/Y FX |
| Full Year FY26 Guidance | ||
| GAAP |
| Non-GAAP(1) |
Revenue | $41.0 - $41.3 billion |
|
|
Revenue growth(2) | 8% - 9% |
| Approximately 8% CC, $250M Y/Y FX |
Subscription & support revenue growth(4) | Approximately 9.5% |
| Approximately 9% CC |
Operating margin | 21.6% |
| 34.0% |
Diluted net income per share | $7.15 - $7.21 |
| $11.27 - $11.33 |
Operating cash flow growth | Approximately 10% - 11% |
|
|
Free cash flow growth |
|
| Approximately 9% - 10% |
(1) Non-GAAP CC revenue growth, non-GAAP CC remaining performance obligation growth, non-GAAP CC subscription & support revenue growth, non-GAAP operating margin, non-GAAP diluted net income per share, and free cash flow growth are non-GAAP financial measures. See below for an explanation of non-GAAP financial measures. The Company's shares used in computing GAAP diluted net income per share guidance and non-GAAP diluted net income per share guidance excludes any impact to share count from potential Q2 - Q4 FY26 repurchase activity under our share repurchase program. | |||
(2) Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates. | |||
(3) Current remaining performance obligation FX impact is calculated by taking the current period rates compared to the prior period ending rates. | |||
(4) Subscription & support revenue excludes professional services revenue. | |||
The following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year:
|
| Full Year FY26 |
GAAP operating margin(1) |
| 21.6% |
Plus |
|
|
Amortization of purchased intangibles(2) |
| 3.7% |
Stock-based compensation expense(2)(3) |
| 8.4% |
Restructuring(2)(3) |
| 0.3% |
Non-GAAP operating margin(1) |
| 34.0% |
(1) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. | ||
(2) The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY26. | ||
(3) The percentages shown in the restructuring line have been calculated based on charges associated with the Company's restructuring initiatives. Stock-based compensation expense excludes stock-based compensation expense related to the Company's restructuring initiatives, which is included in the restructuring line. | ||
The following is a per share reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share guidance for the next quarter and the full year:
| Fiscal 2026 | ||||||
| Q2 |
| FY26 | ||||
GAAP diluted net income per share range(1)(2) | $1.80 - $1.82 |
| $7.15 - $7.21 | ||||
Plus |
|
|
| ||||
Amortization of purchased intangibles |
| 0.39 |
|
| $ | 1.57 |
|
Stock-based compensation expense |
| 0.82 |
|
| $ | 3.54 |
|
Restructuring(3) |
| — |
|
| $ | 0.11 |
|
Less |
|
|
| ||||
Income tax effects and adjustments(4) |
| (0.25 | ) |
| $ | (1.10 | ) |
Non-GAAP diluted net income per share(2) | $2.76 - $2.78 |
| $11.27 - $11.33 | ||||
Shares used in computing basic net income per share (millions)(5) |
| 960 |
|
|
| 963 |
|
Shares used in computing diluted net income per share (millions)(5) |
| 967 |
|
|
| 971 |
|
(1) The Company's GAAP tax provision is expected to be approximately 22.5% for the three months ended July 31, 2025 and the year ended January 31, 2026. The GAAP tax rates may fluctuate due to discrete tax items and related effects in conjunction with certain provisions in the Tax Cuts and Jobs Act, future acquisitions or other transactions. | |||||||
(2) The Company's projected GAAP and non-GAAP diluted net income per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses. The impact of future gains or losses from the Company’s strategic investment portfolio could be material. | |||||||
(3) The estimated impact to GAAP diluted net income per share is in connection with the Company's restructuring initiatives. | |||||||
(4) The Company’s non-GAAP tax provision uses a long-term projected tax rate of 22.0%, which reflects currently available information and could be subject to change. | |||||||
(5) The Company's shares used in computing GAAP net income per share guidance and non-GAAP net income per share guidance excludes any impact to share count from potential Q2 - Q4 FY26 repurchase activity under our share repurchase program. | |||||||
For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.
Management will provide further commentary around these guidance assumptions on its earnings call.
Product Releases and Enhancements
Salesforce releases major updates for our core platform and apps three times a year, with additional updates happening regularly across our portfolio. These releases are a result of significant research and development investments made over multiple years, and are designed to help customers drive cost savings, boost efficiency, and build trust.
Robin Washington, President and Chief Operating and Financial Officer, along with product leaders, will participate in a Q1 FY26 Product and Innovation Overview webinar on Thursday, May 29, 2025, at 10:00 AM PT / 1:00 PM ET. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
To learn more about our newest innovations and product release highlights, including our latest Spring 2025 Product Release, see FY26 Q1 Product Releases and Announcements at https://www.salesforce.com/news/stories/fy26-q1-highlights/ and see our latest major release at www.salesforce.com/releases.
Environmental, Social, and Governance (ESG) Strategy
To learn more about our latest initiatives and priorities, review our recently published Stakeholder Impact Report at https://salesforce.com/stakeholder-impact-report.
Quarterly Conference Call
Salesforce plans to host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
About Salesforce
Salesforce helps organizations of any size reimagine their business with AI. Agentforce — the first digital labor solution for enterprises — seamlessly integrates with Customer 360 applications, Data Cloud, and Einstein AI to create a limitless workforce, bringing humans and agents together to deliver customer success on a single, trusted platform. Visit www.salesforce.com for more information.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about the Company's financial and operating results and guidance, which include, but are not limited to, expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, net income per share, operating cash flow growth, operating margin, expected revenue growth, expected foreign currency exchange rate impact, expected current remaining performance obligation growth, expected tax rates or provisions, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, strategic investments, expected restructuring expense or charges and expected timing of product releases and enhancements. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results or outcomes could differ materially and adversely from those expressed or implied by our forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements.
The risks and uncertainties referred to above include -- but are not limited to -- risks associated with:
- our ability to consummate the proposed Informatica transaction on a timely basis or at all, including our ability to obtain regulatory approvals and satisfy other conditions precedent to the completion of the transaction;
- the effect of the announcement of the Informatica transaction on our operating results, the market price of our common stock, our ability to retain and hire key personnel and our ability to maintain relationships with customers, suppliers and others with whom we or Informatica do business;
- our ability to maintain sufficient security levels and service performance, avoid downtime and prevent, detect and remediate performance degradation and security breaches;
- our ability to secure sufficient data center capacity;
- our reliance on third-party infrastructure providers, including hardware, software, energy and platform providers and the organizations responsible for the development and maintenance of Internet infrastructure;
- uncertainties regarding AI technologies and their integration into our product offerings;
- the evolving landscape related to environmental, social and governance (“ESG”) matters;
- the effect of evolving government regulations, including those related to our industry and providing services on or accessing the Internet, and those addressing ESG matters, data privacy, cybersecurity, cross-border data transfers, government contracting and procurement, and import and export controls;
- current and potential litigation and regulatory investigations involving us or our industry;
- our ability to successfully expand or introduce new services and product features, including related to AI and Agentforce;
- our ability to successfully complete, integrate and realize the benefits from acquisitions or other strategic transactions;
- uncertainties regarding the pace of change and innovation and our ability to compete in the markets in which we participate;
- our ability to successfully execute our business strategy and our business plans, including efforts to expand internationally and related risks;
- our ability to predict and meet expectations regarding our operating results and cash flows, including revenue and remaining performance obligation, including as a result of the seasonal nature of our sales cycle and the variability in our results arising from the accounting for term license revenue products and some complex transactions;
- our ability to predict and limit customer attrition and costs related to those efforts;
- the demands on our personnel and infrastructure resulting from significant growth in our customer base and operations, including as a result of acquisitions;
- our real estate and office facilities strategy and related costs and uncertainties;
- the performance of our strategic investment portfolio, including fluctuations in the fair value of our investments;
- our ability to protect our intellectual property rights;
- our ability to maintain and enhance our brands;
- uncertainties regarding the valuation and potential availability of certain tax assets;
- the impact of new accounting pronouncements and tax laws;
- uncertainties affecting our ability to estimate our tax rate, including our tax obligations in connection with potential jurisdictional transfer of intellectual property;
- uncertainties regarding the effect of geopolitical events, inflationary pressures, market and macroeconomic volatility, financial institution instability, changes in monetary policy, foreign currency exchange rate and interest rate fluctuations, uncertainty regarding changes in trade policies, including trade wars, the threat or imposition of tariffs or other trade restrictions as well as any retaliatory actions, and climate change, natural disasters and actual or threatened public health emergencies on our workforce, business, and operating results;
- uncertainties regarding the impact of expensing stock options and other equity awards;
- the sufficiency of our capital resources, including our ability to execute our share repurchase program and declare future cash dividends;
- our ability to comply with our debt covenants and lease obligations; and
- uncertainties regarding impacts to our workforce and workplace culture, such as those arising from our current and future office environments or remote work policies or our ability to realize the expected benefits of the Company's restructuring initiatives.
Further information on these and other factors that could affect the Company’s actual results or outcomes is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings it makes with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Financials section of the Company’s website at investor.salesforce.com/financials/.
Salesforce, Inc. assumes no obligation and does not intend to revise or update publicly any forward-looking statements for any reason, except as required by law.
© 2025 Salesforce, Inc. All rights reserved. Salesforce and other marks are trademarks of Salesforce, Inc. Other brands featured herein may be trademarks of their respective owners.
Salesforce, Inc. Condensed Consolidated Statements of Operations (in millions, except per share data) (Unaudited) | |||||||
Three Months Ended April 30, | |||||||
|
| 2025 |
|
|
| 2024 |
|
Revenues: |
|
|
| ||||
Subscription and support | $ | 9,297 |
|
| $ | 8,585 |
|
Professional services and other |
| 532 |
|
|
| 548 |
|
Total revenues |
| 9,829 |
|
|
| 9,133 |
|
Cost of revenues (1)(2): |
|
|
| ||||
Subscription and support |
| 1,611 |
|
|
| 1,560 |
|
Professional services and other |
| 654 |
|
|
| 602 |
|
Total cost of revenues |
| 2,265 |
|
|
| 2,162 |
|
Gross profit |
| 7,564 |
|
|
| 6,971 |
|
Operating expenses (1)(2): |
|
|
| ||||
Research and development |
| 1,460 |
|
|
| 1,368 |
|
Sales and marketing |
| 3,429 |
|
|
| 3,239 |
|
General and administrative |
| 697 |
|
|
| 647 |
|
Restructuring |
| 36 |
|
|
| 8 |
|
Total operating expenses |
| 5,622 |
|
|
| 5,262 |
|
Income from operations |
| 1,942 |
|
|
| 1,709 |
|
Gains (losses) on strategic investments, net |
| (63 | ) |
|
| 37 |
|
Other income |
| 95 |
|
|
| 121 |
|
Income before provision for income taxes |
| 1,974 |
|
|
| 1,867 |
|
Provision for income taxes |
| (433 | ) |
|
| (334 | ) |
Net income | $ | 1,541 |
|
| $ | 1,533 |
|
Basic net income per share | $ | 1.61 |
|
| $ | 1.58 |
|
Diluted net income per share (3) | $ | 1.59 |
|
| $ |
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