"This transaction is not expected to disrupt our capital return strategy, inclusive of our share repurchase program and our dividend. The deal will be financed through a combination of cash and new debt, resulting in no share dilution."
— Robin Washington
03Detailed Report
CRM
Company CRM
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Salesforce delivered a solid start to fiscal 2026 with Q1 revenue of $9.829 billion, up 8% year over year (YoY) and 9% in constant currency, supported by continued strength in small/medium business and mid-market segments. The company raised its FY2026 revenue guidance to a high end of $41.3 billion, reflecting favorable FX tailwinds and solid demand across its cloud portfolio, while maintaining discipline on margins and cash flow. Management emphasized the accelerating AI-driven flywheel centered on the ADAM framework (Agents, Data, Apps, Metadata), with Data Cloud and AgentForce delivering outsized growth and cross-cloud value.
Key Performance Indicators
Revenue
Increasing
9.83B
QoQ: -1.64% | YoY: 7.62%
Gross Profit
Increasing
7.56B
76.96% margin
QoQ: -2.73% | YoY: 8.51%
Operating Income
Increasing
1.94B
QoQ: 6.70% | YoY: 13.63%
Net Income
Increasing
1.54B
QoQ: -9.78% | YoY: 0.52%
EPS
Increasing
1.61
QoQ: -9.55% | YoY: 1.90%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $9.829B in Q1 2026, up 8% YoY and ~9% CC. Gross profit: $7.564B; gross margin ~76.96% (0.7696). Operating income: $1.942B; operating margin ~19.76%. EBITDA: $2.749B; EBITDA margin ~27.97%. Net income: $1.541B; net margin ~15.68%. Diluted EPS: $1.59; basic EPS: $1.61. Remaining performance obligation (RPO): $60.9B, up 13% YoY. Current RPO (CRPO): $29.6B, up 12% YoY. Cash flow: net cash provided by operating activities $6.476B; free cash flow $6.297B. Cash and cash equivalents: $10.928B; total current assets $25.866B; total assets $98.61B. Total debt: $11.369B; net debt: $0.441B; cash/equivalents plus short-term investments: $17.408B. Guidance: FY2026 revenue to $41.0–$41.3B (high end $41.3B), FX tailwinds ~$250M; non-GAAP operating margin ~34%; GAAP margin ~21.6%; annual OCF growth 10–11%; free cash flow growth 9–10%. Q2 guidance: $10.1–$10.2B revenue; CRPO growth ~10% nominal with ~+$0.3B FX tailwind. Notable product/portfolio highlights include AgentForce/Data Cloud traction (Data Cloud ARR growth >120% YoY, Data Cloud records >22 trillion, top deals anchored by Data Cloud and AgentForce), Tableau integration, and ongoing Informatica acquisition (expected close early FY2027) with accretion and non-dilutive financing expectations.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
9.83B
7.62%
-1.64%
Gross Profit
7.56B
8.51%
-2.73%
Operating Income
1.94B
13.63%
6.70%
Net Income
1.54B
0.52%
-9.78%
EPS
1.61
1.90%
-9.55%
Key Financial Ratios
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