10-QPeriod: Q1 FY2026

Salesforce, Inc. Quarterly Report for Q1 Ended Apr 30, 2025

Filed May 29, 2025For Securities:CRM

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
Beta

Revenue

$9.83B

77.0% Gross Margin

Net Income

$1.54B

15.7% Net Margin

EPS (Diluted)

$1.59

Total Assets

$98.61B

Cash & Equivalents

$10.93B

Free Cash Flow

$6.30B

Financial Statements
Beta
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.

Frequently Asked Questions

Salesforce reported total revenues of $9.8 billion for the first quarter ended April 30, 2025, representing an 8% increase compared to $9.1 billion in the same period last year. Subscription and support revenues, the company's primary revenue stream, also grew by 8% to $9.3 billion.

Profitability improved in the first quarter. Income from operations increased to $1.9 billion, up from $1.7 billion in the prior year. This resulted in an expansion of the operating margin to approximately 20% from 19% year-over-year. Diluted net income per share also saw a modest increase to $1.59 from $1.56.

Salesforce demonstrated strong cash flow generation, with net cash provided by operating activities reaching $6.5 billion for the quarter, a 4% increase year-over-year. The company maintains a robust liquidity position, holding $17.4 billion in cash, cash equivalents, and marketable securities as of April 30, 2025.

The Remaining Performance Obligation (RPO) represents contracted future revenue that has not yet been recognized. Salesforce's RPO stood at $60.9 billion as of April 30, 2025, an increase of 13% year-over-year. This figure, particularly the current RPO of $29.6 billion, serves as a strong indicator of future revenue visibility and contractual commitments from customers.