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Jul 31, 2025
Salesforce Q2 2026 Earnings Report
Salesforce reported record results in Q2 FY26 with strong revenue and earnings performance.
Key Takeaways
Salesforce exceeded expectations in Q2 FY26, posting solid revenue growth, margin expansion, and strong net income, driven by AI and Data Cloud momentum.
Revenue reached $10.24B, up from $9.33B a year ago.
Net income rose to $1.89B, a significant increase from $1.43B in Q2 FY25.
Free cash flow reached $605M in the quarter.
Salesforce added $20B to its share repurchase program, now totaling $50B.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Salesforce raised its FY26 revenue and cash flow guidance while maintaining strong margin expectations, signaling confidence in sustained growth.
Positive Outlook
- FY26 revenue guidance raised to $41.1B–$41.3B
- Non-GAAP operating margin raised to 34.1%
- Operating cash flow growth expected at 12%–13%
- Subscription and support revenue expected to grow ~9.5%
- EPS guidance (non-GAAP) for FY26: $11.33–$11.37
Challenges Ahead
- Slight sequential decline in RPO from Q1 FY26
- Cash flow lower than prior quarter
- High reliance on share repurchases to return value
- Continued restructuring costs expected
- Ongoing macroeconomic and FX headwinds mentioned
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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