Executive Summary
Salesforce Inc posted QQ2 2026 revenue of 10.236 billion USD, up 9.77% year-over-year and 4.14% quarter-over-quarter. The top line benefited from broad-based demand across core CRM offerings and cross-sell of complementary platforms, contributing to a solid gross margin of approximately 78.1% and indicating a favorable mix of higher-margin products. Operating income reached 2.332 billion USD, yielding an operating margin of about 22.8%, while net income stood at 1.887 billion USD with a net margin near 18.4% and an EPS of 1.97 (diluted 1.96). These results reflect disciplined cost management alongside ongoing strategic investments in product development and go-to-market capabilities.
Key Performance Indicators
Key Insights
Revenue: 10,236,000,000 | YoY 9.77% | QoQ 4.14%
Gross Profit: 7,994,000,000 | Gross margin ~78.1%
Operating Income: 2,332,000,000 | Operating margin ~22.8%
Net Income: 1,887,000,000 | Net margin ~18.4%
EPS (Diluted): 1.96-1.97 | Shares (weighted avg): 956-962 million
Cash Flow: Operating cash flow 740,000,000; Capex 135,000,000; Free cash flow 605,000,000
Balance Sheet: Cash & equivalents 10.365B; Short-term investments 5.007B; Total cash & investments 15.372B; Total assets 97.573B; Tota...
Financial Highlights
Revenue: 10,236,000,000 | YoY 9.77% | QoQ 4.14%
Gross Profit: 7,994,000,000 | Gross margin ~78.1%
Operating Income: 2,332,000,000 | Operating margin ~22.8%
Net Income: 1,887,000,000 | Net margin ~18.4%
EPS (Diluted): 1.96-1.97 | Shares (weighted avg): 956-962 million
Cash Flow: Operating cash flow 740,000,000; Capex 135,000,000; Free cash flow 605,000,000
Balance Sheet: Cash & equivalents 10.365B; Short-term investments 5.007B; Total cash & investments 15.372B; Total assets 97.573B; Total liabilities 36.245B; Stockholders’ equity 61.328B; Net debt: -7.564B (net cash)
Deferred Revenue: 16.556B; Total current liabilities 22.532B; Long-term debt 4.441B; Total debt 2.801B
Capital Allocation: Stock repurchases of 2.225B; Share issuance 0.232B; Dividends paid 0.399B; Net cash from operations 740M; Forex effects +1.624B
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.24B |
9.77% |
4.14% |
| Gross Profit |
7.99B |
11.55% |
5.68% |
| Operating Income |
2.33B |
30.79% |
20.08% |
| Net Income |
1.89B |
32.05% |
22.45% |
| EPS |
1.97 |
33.11% |
22.36% |
Management Commentary
Themes from the earnings call (summary):
- Demand and growth: Management highlighted durable demand across key verticals and continued acceleration in ARR-driven growth, supported by CRM core modules and cross-sell of Tableau and MuleSoft.
- Product strategy and AI: Emphasis on expanding the Customer 360 platform, expanding AI-enabled features to improve selling efficiency and customer service, and deeper integration across Slack, Tableau, and MuleSoft offerings.
- Monetization and pricing: Ongoing focus on value-based pricing for cross-sell opportunities and expanding usage within existing customer bases.
- Execution and efficiency: Cited disciplined operating expense management alongside strategic investments in product development and go-to-market capabilities; progress on operating margin expansion through mix and scale.
- Capital allocation: Active share repurchase program complemented by steady dividend policy, with a constructive view on returning capital to shareholders while funding growth initiatives.
Forward Guidance
Quantitative forward guidance is not explicitly provided in the data. Qualitative view: management appears to be steering toward sustainable revenue acceleration and margin expansion through mix shift to higher-margin offerings and ongoing cost discipline. Key monitoring metrics for investors include:
- Revenue trajectory and mix (CRM core, Tableau, MuleSoft, Slack) and any changes in dollar-based net retention.
- Gross and operating margins, with attention to the contribution of AI-enabled features and efficiency programs.
- Free cash flow generation and capital allocation strategy (rate of buybacks vs. investments).
- Deferred revenue evolution as an indicator of multi-year commitments and revenue visibility.
Overall, the outlook hinges on continued enterprise IT spend strength, successful cross-sell of adjacent platforms, and the ability to translate product investments into higher ARR and cash flow.