Summary
Salesforce Inc (CRM, Financial), the leading AI CRM platform, announced its financial results for the first quarter of fiscal 2026, ending April 30, 2025. The company reported a revenue of $9.8 billion, marking an 8% increase year-over-year. Salesforce also raised its full-year revenue guidance to $41.3 billion at the high end, reflecting confidence in its strategic initiatives and market position. The announcement was made on May 28, 2025.
Positive Highlights
- First quarter revenue increased by 8% year-over-year to $9.8 billion.
- Subscription and support revenue rose by 8% year-over-year to $9.3 billion.
- Operating cash flow grew by 4% year-over-year to $6.5 billion.
- Data Cloud and AI annual recurring revenue exceeded $1 billion, up over 120% year-over-year.
- Salesforce returned $3.1 billion to shareholders through share repurchases and dividends.
Negative Highlights
- Free cash flow growth was modest at 4% year-over-year.
- Unearned revenue decreased from $20.7 billion to $17.8 billion.
Financial Analyst Perspective
Salesforce's Q1 results demonstrate robust growth and effective cost management, as evidenced by the increase in both GAAP and non-GAAP operating margins. The company's strategic focus on AI and data integration is paying off, with significant growth in Data Cloud and AI revenues. The acquisition of Informatica is expected to further enhance Salesforce's capabilities, although its impact will be more visible in FY27. The raised revenue guidance indicates strong market demand and confidence in Salesforce's strategic direction.
Market Research Analyst Perspective
Salesforce's performance in Q1 reflects its strong market position and the successful integration of AI into its offerings. The company's ability to close over 8,000 deals since launching Agentforce highlights its competitive edge in the CRM space. The acquisition of Informatica positions Salesforce to offer a more comprehensive AI and data platform, which could drive further market penetration. However, the decrease in unearned revenue suggests potential challenges in maintaining subscription growth momentum.
FAQs
Q: What was Salesforce's revenue for Q1 fiscal 2026?
A: Salesforce reported a revenue of $9.8 billion for Q1 fiscal 2026.
Q: How much did Salesforce return to shareholders in Q1?
A: Salesforce returned $3.1 billion to shareholders, including $2.7 billion in share repurchases and $402 million in dividends.
Q: What is the expected impact of the Informatica acquisition on Salesforce's guidance?
A: There is no anticipated impact on Salesforce's FY26 guidance from the Informatica acquisition, as the transaction is expected to close in early FY27.
Q: How did Salesforce's Data Cloud and AI revenue perform?
A: Data Cloud and AI annual recurring revenue exceeded $1 billion, up more than 120% year-over-year.
Read the original press release here.
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