10-QPeriod: Q1 FY2027

Salesforce, Inc. Quarterly Report for Q1 Ended Apr 30, 2026

Filed May 28, 2026For Securities:CRM

Summary

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 billion, 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 billion, 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.

Financial Highlights

52 data points
Beta

Revenue

$11.13B

76.9% Gross Margin

Net Income

$2.11B

18.9% Net Margin

EPS (Diluted)

$2.42

Total Assets

$106.68B

Cash & Equivalents

$8.94B

Free Cash Flow

$6.56B

Financial Statements
Beta
Revenue$11.13B
Cost of Revenue$2.57B
Gross Profit$8.56B
R&D Expenses$1.63B
Operating Expenses$6.22B
Operating Income$2.35B
Net Income$2.11B
EPS (Basic)$2.43
EPS (Diluted)$2.42
Shares Outstanding (Basic)868.00M
Shares Outstanding (Diluted)871.00M

Key Highlights

  • 1Total revenues increased by 13% year-over-year to $11.1 billion, with subscription and support revenues growing by 14%.
  • 2Income from operations rose to $2.3 billion, leading to an expansion in operating margin to 21% from 20% in the prior year period.
  • 3Diluted net income per share surged to $2.42, compared to $1.59 in the prior year, benefiting from an accelerated share repurchase program.
  • 4Net cash provided by operating activities was strong at $6.7 billion, up 3% year-over-year.
  • 5Total remaining performance obligation (RPO) stood at $67.9 billion, an increase of 11% year-over-year, indicating strong future revenue potential.
  • 6The company completed a significant acquisition of Qualified.com, Inc. for $1.2 billion in cash, further bolstering its AI capabilities.
  • 7Total debt increased substantially to $39.3 billion (noncurrent) due to recent debt issuances totaling $25 billion, primarily to fund share repurchases and acquisitions.

Frequently Asked Questions

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%.

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.

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.

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.