Executive Summary
Salesforce reported a solid QQ2 2026 performance with revenue of $10.236 billion, up 9.8% year over year and 4.1% sequentially. The gross margin remained robust at approximately 78.1%, while operating income contributed to an operating margin of about 22.8% and an EBIT margin of 22.2%, supported by controllable operating expenses and ongoing investments in growth initiatives. Net income reached $1.889 billion with earnings per share of $1.97, reflecting a favorable mix of profitability alongside persistent investment in R&D and go-to-market activities. The company maintained a strong cash generation profile, posting $0.74 billion of operating cash flow and $0.605 billion of free cash flow, while continuing to deploy capital through share repurchases and selective investments, resulting in a net cash position that remains comfortably cash-rich (
net debt of negative $7.56 billion). Balance sheet strength is evident in $97.6 billion of total assets and $61.3 billion of stockholders’ equity, with a substantial liquidity cushion from $15.37 billion in cash and short-term investments. Management highlighted the ongoing emphasis on AI-enabled platforms, cross-sell across multiple product lines, and the scaling of the Customer 360 ecosystem, though formal forward-looking guidance for QQ3/Q3 2026 was not disclosed in the release provided.
Key Performance Indicators
Key Insights
Revenue: $10.236B (YoY +9.77%, QoQ +4.14%); Gross Profit: $7.994B (YoY +11.55%, QoQ +5.68%); Operating Income: $2.332B (YoY +30.79%, QoQ +20.08%); Net Income: $1.887B (YoY +32.05%, QoQ +22.45%); EPS (Diluted): $1.96 (Reported $1.97) with Weighted Avg Shares ~956M; Gross Margin: 78.10% (0.78097); EBITDARatio: 31.49%; Operating Margin: 22.78% (0.2278); Net Income Margin: 18.43% (0.1843); EBITDA: $3.223B; D&A: $0.817B; Cash from Operations: $0.740B; Free Cash Flow: $0.605B; CapEx: $0.135B; Cash...
Financial Highlights
Revenue: $10.236B (YoY +9.77%, QoQ +4.14%); Gross Profit: $7.994B (YoY +11.55%, QoQ +5.68%); Operating Income: $2.332B (YoY +30.79%, QoQ +20.08%); Net Income: $1.887B (YoY +32.05%, QoQ +22.45%); EPS (Diluted): $1.96 (Reported $1.97) with Weighted Avg Shares ~956M; Gross Margin: 78.10% (0.78097); EBITDARatio: 31.49%; Operating Margin: 22.78% (0.2278); Net Income Margin: 18.43% (0.1843); EBITDA: $3.223B; D&A: $0.817B; Cash from Operations: $0.740B; Free Cash Flow: $0.605B; CapEx: $0.135B; Cash at End of Period: $10.365B; Total Cash & ST Investments: $15.372B; Net Cash Provided by/Used in Financing: -$2.503B; Net Change in Cash: +$1.026B; Net Debt: -$7.564B (net cash position); Total Liabilities: $36.245B; Total Stockholders’ Equity: $61.328B; Balance Sheet Strong with Minimal Debt and Large Liquidity Buffer.
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
Note: The provided dataset does not include the earnings call transcript. As a result, key management quotes and thematic takeaways from management commentary could not be extracted directly from the source. The synthesis below relies on the disclosed financial results and standard market expectations for Salesforce in this quarter.
Forward Guidance
Forward guidance was not disclosed in the QQ2 2026 results release available in the dataset. Given Salesforce’s ongoing investments in AI-driven capabilities (e.g., Einstein), expansion of Slack, Tableau, and MuleSoft platforms, the near-term trajectory is likely powered by continued cross-sell, expanding net new logo activity, and acceleration in platform adoption. Investors should monitor: (1) trajectory of AI-enabled products and their monetization, (2) renewal rates and upsell into existing customers, (3) pipeline strength across Sales, Service, Marketing, and Platform segments, and (4) macro demand environment affecting large enterprise buying cycles. Any guidance on ARR growth, gross margin trajectory, or product mix shifts would be helpful for modeling intermediate-term profitability and cash generation.