Salesforce reported Q1 2026 revenue of $9.829 billion, marking a 7.62% year-over-year increase and a 1.64% quarter-over-quarter decline. The gross margin stood at 76.96%, and operating margin was 19.76%, driving diluted EPS of $1.59 (GAAP $1.61). Net income was $1.541 billion, representing a net margin of 15.68%. The company generated substantial operating cash flow of $6.476 billion and free cash flow of $6.297 billion, supported by prudent working capital management. Balance-sheet strength remains intact with $10.928 billion of cash and equivalents and a net debt position of $0.441 billion, underscoring liquidity to fund strategic initiatives and capital returns.
Capital allocation remained aggressive, as Salesforce deployed $2.633 billion to share repurchases and paid $0.402 billion in dividends, contributing to a net cash outflow from financing activities of approximately $2.92 billion for the quarter. The four-quarter trend shows sustained profitability with robust cash generation, though management commentary on longer-cycle AI-driven initiatives and ABM/ACV expansion will be critical to sustaining multi-year growth. Overall, the quarter reinforces Salesforce’s position as a leading, high-margin SaaS CRM platform with substantial optionality from AI-enabled capabilities and ecosystem synergies.