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Apr 30

Salesforce Q1 2026 Earnings Report

Salesforce posted strong Q1 results, exceeding guidance across all metrics and achieving record revenue.

Key Takeaways

Salesforce delivered robust Q1 FY26 results with $9.8B in revenue and $1.54B in net income, driven by strength in AI and Data Cloud adoption.

Revenue reached $9.8B, up from $9.1B the previous year

EPS came in at $1.59 GAAP and $2.58 non-GAAP

Net income was $1.54B for the quarter

Data Cloud and AI ARR surpassed $1B, included in nearly 60% of top 100 deals

Total Revenue
$9.83B
Previous year: $9.13B
+7.6%
EPS
$2.58
Previous year: $2.44
+5.7%
Current RPO
$29.6B
Previous year: $26.4B
+12.1%
Gross Profit
$7.56B
Previous year: $6.97B
+8.5%
Cash and Equivalents
$10.9B
Previous year: $9.96B
+9.7%
Free Cash Flow
$6.3B
Previous year: $6.08B
+3.6%
Total Assets
$98.6B
Previous year: $96.2B
+2.5%

Salesforce

Salesforce

Salesforce Revenue by Segment

Salesforce Revenue by Geographic Location

Forward Guidance

Salesforce raised its full-year FY26 revenue guidance and expects strong Q2 growth, supported by AI demand and a favorable FX tailwind.

Positive Outlook

  • Raised FY26 revenue guidance to $41.3B at the high end
  • Initiated Q2 revenue guidance between $10.11B and $10.16B
  • Maintains FY26 GAAP operating margin guidance at 21.6%
  • Non-GAAP operating margin expected at 34%
  • Forecasts operating cash flow growth of ~10% to 11% for FY26

Challenges Ahead

  • Revenue growth guidance limited to 8%–9% YoY
  • Non-GAAP revenue growth rate moderated to ~8%
  • Continued restructuring costs impact GAAP margins
  • Free cash flow growth guidance slightly lower than operating cash flow
  • No immediate financial impact from Informatica acquisition until FY27

Revenue & Expenses

Visualization of income flow from segment revenue to net income