01—Abstract
Summary
Summary of the 10-Q filed May 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Salesforce, Inc. reported strong financial results for the first quarter of fiscal year 2027, ending April 30, 2026.
Total revenues grew 13% year-over-year to $11.1 billiona, driven primarily by a 14% increase in subscription and support revenues. The company demonstrated improved profitability, with income from operations increasing to $2.3 billion and operating margin expanding to 21%. Diluted net income per share saw significant growth, reaching $2.42, boosted by a substantial share repurchase program and the positive impact of acquisitions.
Net cash provided by operating activities remained robust at $6.7 billionb, showcasing the company's strong cash generation capabilities. Despite a significant increase in debt primarily related to recent acquisitions and share repurchases, Salesforce maintains a solid liquidity position with $11.8 billion in cash, cash equivalents, and marketable securities. The company continues to focus on profitable growth, operational efficiencies, and strategic investments in AI and its Agentforce platform to drive future innovation and customer value.
02—Key points
Key Highlights
- Total revenues increased by 13% year-over-year to $11.1 billion, with subscription and support revenues growing by 14%.
- Income from operations rose to $2.3 billion, leading to an expansion in operating margin to 21% from 20% in the prior year period.
- Diluted net income per share surged to $2.42, compared to $1.59 in the prior year, benefiting from an accelerated share repurchase program.
- Net cash provided by operating activities was strong at $6.7 billion, up 3% year-over-year.
- Total remaining performance obligation (RPO) stood at $67.9 billion, an increase of 11% year-over-year, indicating strong future revenue potential.
- The company completed a significant acquisition of Qualified.com, Inc. for $1.2 billion in cash, further bolstering its AI capabilities.
- Total debt increased substantially to $39.3 billion (noncurrent) due to recent debt issuances totaling $25 billion, primarily to fund share repurchases and acquisitions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2027, Salesforce, Inc. kept $0.19.
- Revenue$11.13B100.0%
- Cost of revenue−$2.57B23.1%
- Gross profit$8.56B76.9%
- Operating costs−$6.22B55.8%
- Operating income$2.35B21.1%
- Interest, other & tax−$240.0M2.2%
- Net income$2.11B18.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed May 28, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $11.13B$9.83B | +13.3% |
| Cost of Revenue | $2.57B$2.27B | +13.5% |
| Gross Profit | $8.56B$7.56B | +13.2% |
| R&D Expenses | $1.63B$1.46B | +11.4% |
| Operating Expenses | $6.22B$5.62B | +10.6% |
| Operating Income | $2.35B$1.94B | +20.9% |
| Net Income | $2.11B$1.54B | +36.7% |
| EPS (Basic) | $2.43$1.61 | +50.9% |
| EPS (Diluted) | $2.42$1.59 | +52.2% |
| Shares Outstanding (Basic) | 868.00M960.00M | −9.6% |
| Shares Outstanding (Diluted) | 871.00M970.00M | −10.2% |
05—Questions
Frequently Asked Questions
What was Salesforce's revenue growth in the first quarter of fiscal year 2027?
Salesforce reported total revenues of $11.1 billion for the three months ended April 30, 2026, representing a 13% increase compared to the same period in the prior year. Subscription and support revenues, which constitute the majority of total revenue, grew by 14%.
How did the company's profitability change compared to the previous year?
Profitability improved significantly. Income from operations increased to $2.3 billion from $1.9 billion in the prior year, resulting in an expanded operating margin of 21% (up from 20%). Net income also grew substantially, leading to a diluted net income per share of $2.42, up from $1.59 in the prior year.
What is the company's current liquidity position?
As of April 30, 2026, Salesforce had $11.8 billion in cash, cash equivalents, and marketable securities, providing a strong liquidity buffer. Additionally, the company has a $5.0 billion unsecured revolving credit facility.
How has the company's debt situation changed?
The company's debt has increased significantly. As of April 30, 2026, total noncurrent debt was $39.3 billion, up from $10.4 billion at January 31, 2026. This increase is primarily due to recent debt issuances totaling $25 billion in March 2026, which were used to fund an accelerated share repurchase program and a $6.0 billion term loan credit agreement entered into in March 2026.
06—Continue