Summary
Salesforce, Inc. reported solid performance for the first quarter of fiscal year 2026, with total revenues reaching $9.8 billion, an 8% increase year-over-year. Subscription and support revenues continue to be the primary driver, accounting for 95% of total revenue and growing by 8% to $9.3 billion. Income from operations saw a healthy increase to $1.9 billion, resulting in an improved operating margin of approximately 20%, up from 19% in the prior year period. This operational efficiency contributed to a slight increase in diluted earnings per share to $1.59 from $1.56 in the comparable quarter. The company also demonstrated strong cash flow generation, with $6.5 billion in cash provided by operating activities. This robust operational performance, combined with prudent expense management, including $36 million in restructuring charges for the quarter, reflects a continued focus on profitable growth. The company ended the quarter with a healthy liquidity position, evidenced by $17.4 billion in cash, cash equivalents, and marketable securities. Investors will likely view the 8% year-over-year revenue growth and improved operating margin as positive indicators of Salesforce's ongoing ability to expand its market leadership and drive shareholder value.
Financial Highlights
53 data points| Revenue | $9.83B |
| Cost of Revenue | $2.27B |
| Gross Profit | $7.56B |
| R&D Expenses | $1.46B |
| Operating Expenses | $5.62B |
| Operating Income | $1.94B |
| Interest Expense | $68.00M |
| Net Income | $1.54B |
| EPS (Basic) | $1.61 |
| EPS (Diluted) | $1.59 |
| Shares Outstanding (Basic) | 960.00M |
| Shares Outstanding (Diluted) | 970.00M |
Key Highlights
- 1Total revenues increased 8% year-over-year to $9.8 billion.
- 2Subscription and support revenue grew 8% year-over-year to $9.3 billion, constituting 95% of total revenue.
- 3Income from operations increased to $1.9 billion, with operating margin improving to 20% from 19% in the prior year.
- 4Diluted net income per share rose to $1.59 from $1.56 in the prior year period.
- 5Cash provided by operating activities increased 4% year-over-year to $6.5 billion.
- 6Remaining Performance Obligation grew to $60.9 billion, an increase of 13% year-over-year, indicating strong future revenue potential.
- 7The company repurchased approximately $2.7 billion of its common stock during the quarter.