Salesforce Delivers Record Second Quarter Fiscal 2027 Results
cRPO growth accelerates to 14% Y/Y CC; Raises FY27 revenue guidance by $200M, $300M in CC
Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its second quarter fiscal 2027 ended July 31, 2026.
• Current remaining performance obligation ("cRPO") of $33.5 billion, up 14% year-over-year ("Y/Y") and in constant currency ("CC")
• Subscription and support revenue of $10.8 billion, up 12% Y/Y and 11% in CC, including $440 million Informatica contribution
• Revenue of $11.3 billion, up 11% Y/Y and in CC, including $456 million Informatica contribution
• GAAP diluted net income per share of $4.29, up 119% Y/Y and non-GAAP diluted net income per share of $5.90, up 103% Y/Y
• Operating cash flow of $1.3 billion, up 71% Y/Y, and free cash flow of $1.1 billion, up 81% Y/Y
• Returned $364 million in dividends to shareholders and continued to execute against $25 billion accelerated share repurchase (“ASR”)
“We just delivered one of our best quarters ever, outperforming across every key metric,” said Marc Benioff, Chair and CEO, Salesforce. “AI is delivering value across every layer of our platform. We’re seeing incredible demand for our AI and data products, with ARR about to cross $4 billion. And with AIforce, our trusted enterprise harness, we’re unlocking the data, workflows, business logic, actions, and governance inside Salesforce and making it available to every agent, model, and interface. This is how we are turning AI into customer success at unprecedented scale."
“AI is amplifying the power, reach, and value of our platform,” said Robin Washington, President and Chief Financial and Operating Officer, Salesforce. “NNAOV growth is the strongest it's been in four years, keeping us on track for second-half organic revenue reacceleration.”
• Agentforce and Data 360 annual recurring revenue ("ARR") reached nearly $3.9 billion, up over 210% Y/Y
• Agentforce ARR exceeded $1.5 billion, up over 240% Y/Y. Effective Q2 FY27, Agentforce ARR includes our AI offerings, Slackbot and Headless 360
• 7.0 billion Agentic Work Units (“AWUs”) delivered to date across Agentforce and Slack, with 3.2 billion in Q2, growing 97% quarter-over-quarter ("Q/Q")
• Bookings from Agentforce One Edition and Agentforce for Apps, premium SKUs anchored in Sales and Service including the value from Agentic capabilities, more than doubled Q/Q
• In Q2, Data 360 ingested 104 trillion records, up 355% Y/Y, including 82 trillion via Zero Copy, up 731% Y/Y, and processed 22 terabytes of unstructured data
Salesforce raises full year FY27 revenue guidance to $46.1 billion to $46.4 billion, up 11% - 12% Y/Y and 11% Y/Y in CC. In June, Salesforce announced separate definitive agreements to acquire Contentful and Fin. The Company now expects both transactions to close independently in the coming weeks, during the third quarter of Salesforce's fiscal year 2027. These acquisitions have been incorporated into all metrics within the Company's updated guidance, with the exception of cRPO; the guidance is conditional upon the closing of these transactions.
With the U.S. dollar strengthening in Q2, Salesforce now expects a reduced currency tailwind for the business relative to prior guidance. This currency movement has been incorporated into the Company's updated guidance.
• Initiates third quarter FY27 revenue guidance of $11.42 billion to $11.5 billion, up 11% - 12% Y/Y and in CC, including slightly above 4pts Informatica contribution
• Initiates third quarter FY27 cRPO growth guidance of approximately 14% Y/Y and in CC, which does not include any contribution from the pending acquisitions of Contentful and Fin
• Raises full year FY27 revenue guidance, now expects full year FY27 revenue of $46.1 billion to $46.4 billion, up 11% - 12% Y/Y and 11% in CC, including slightly above 3pts Informatica contribution. The $200M raise, $300 million CC, reflects $100 million of organic growth, $200 million from the pending Contentful and Fin acquisitions, and $100M FX headwind
• Raises full year FY27 subscription and support revenue growth guidance to slightly above 12% Y/Y and slightly under 12% in CC, including slightly above 3pts Informatica contribution
• Updates full year FY27 GAAP operating margin guidance to 20.1%, and maintains non-GAAP operating margin guidance of 34.3%
• Maintains full year FY27 operating cash flow growth guidance and free cash flow growth guidance of approximately 4% - 5% Y/Y
• Final settlement of the company's $25 billion ASR is expected in October 2026.
Salesforce's guidance includes GAAP and non-GAAP financial measures. The following tables summarize Salesforce's guidance for the third quarter fiscal 2027 and full-year fiscal 2027:
Q3 FY27 Guidance GAAP Non-GAAP(1) Revenue $11.42 - $11.5 billion N/A Revenue growth(2) 11% - 12% 11% - 12% CC, $0M Y/Y FX Includes slightly above 4pts Informatica contribution Diluted net income per $1.81 - $1.83 $3.42 - $3.44 share Current remaining Approximately 14% performance obligation Approximately 14% CC,$100M Y/Y FX growth(3)
Full Year FY27 Guidance GAAP Non-GAAP(1) Revenue $46.1 - $46.4 billion N/A Revenue growth(2) 11% - 12% Approximately 11% CC, $200M Y/Y FX Includes slightly above 3pts Informatica contribution Subscription and support revenue Slightly above 12% Slightly under 12% CC growth(4) Includes slightly above 3pts Informatica contribution Operating margin 20.1% 34.3% Diluted net income per $10.21 - $10.25 $16.67 - $16.71 share Operating cash flow Approximately 4% - 5% N/A growth Free cash flow growth N/A Approximately 4% - 5% Capital expenditures N/A Approximately 1.5% of revenue
(1) Non-GAAP CC revenue growth, non-GAAP CC remaining performance obligation growth, non-GAAP CC subscription and support revenue growth, non-GAAP operating margin, non-GAAP diluted net income per share, and free cash flow growth are non-GAAP financial measures. See below for an explanation of non-GAAP financial measures. The Company's shares used in computing GAAP diluted net income per share guidance and non-GAAP diluted net income per share guidance reflect the reduction to share count from the 103 million shares initially delivered under the ASR, but excludes any impact to share count from the final ASR settlement or potential Q3 - Q4 FY27 open-market repurchase activity under our share repurchase program.
(2) Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates.
(3) Current remaining performance obligation FX impact is calculated by taking the current period rates compared to the prior period ending rates.
The following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year:
Full Year FY27 Guidance GAAP operating margin(1) 20.1% Plus Amortization of purchased intangibles(2) 4.4% Stock-based compensation expense(2)(3) 9.0% Restructuring and acquisition-related costs(2)(3) 0.8% Non-GAAP operating margin(1) 34.3%
(1) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non- GAAP income from operations as a percentage of GAAP revenue.
(2) The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY27.
(3) The percentages shown in the restructuring and acquisition-related costs line have been calculated based on charges associated with the Company's restructuring initiatives and acquisition-related costs. Stock-based compensation expense excludes stock-based compensation expense related to the Company's restructuring initiatives, which is included in the restructuring and acquisition-related costs line.
The following is a per share reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share guidance for the next quarter and the full year:
GAAP diluted net income per share range(1)(2) Fiscal 2027 $1.81 - $10.21 - Plus Q3 $1.83 FY27 $10.25 ────────────────────────────────────────────────────────────────────────────── Amortizati… of $ 0.57 $ 2.45 purchased intangibles Stock-based compensati… $ 1.29 $ 4.96 expense Restructur… and $ 0.12 $ 0.42 acquisitio… costs(3) Less Income tax effects and $ -0.37 $ -1.37 adjustment… Non-GAAP diluted net $3.42 - $16.67 - income per $3.44 $16.71 share(2) Shares used in computing basic net 824 835 income per share (millions)… Shares used in computing diluted net 827 838 income per share (millions)…
(1) The Company's GAAP tax provision is expected to be approximately 21.8% for the three months ended October 31, 2026 and 22.3% for the year ended January 31, 2027. The GAAP tax rates may fluctuate due to discrete tax items, changes in valuation allowance assessment, future acquisitions, or other transactions.
(2) The Company's projected GAAP and non-GAAP diluted net income per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses. The impact of future gains or losses from the Company’s strategic investment portfolio could be material.
(3) The estimated impact to GAAP diluted net income per share is in connection with the Company's restructuring initiatives and acquisition-related costs.
(4) The Company’s non-GAAP tax provision uses a long-term projected tax rate of 20.5%, which reflects currently available information and could be subject to change.
(5) The Company's shares used in computing GAAP net income per share guidance and non-GAAP net income per share guidance reflect the reduction to share count from the 103 million shares initially delivered under the ASR, but excludes any impact to share count from the final ASR settlement or potential Q3 - Q4 FY27 open-market repurchase activity under our share repurchase program.
For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.
Management will provide further commentary around these guidance assumptions on its earnings call.
Salesforce releases major updates for our core platform and apps three times a year, with additional updates happening regularly across our portfolio. These releases are a result of significant research and development investments made over multiple years, and are designed to help customers drive cost savings, boost efficiency, and build trust.
Salesforce leaders will participate in a Q2 FY27 Product Adoption & Momentum webinar on Tuesday, September 1, 2026, at 8:00 AM PT / 11:00 AM ET. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
To learn more about our newest innovations and product release highlights, including our latest Summer 2026 Product Release, see FY27 Q2 Product Releases and Announcements at https://www.salesforce.com/news/stories/fy27-q2-highlights/ and see our latest major release at www.salesforce.com/releases.
Salesforce will hold its Investor Day in conjunction with Dreamforce on Wednesday, September 16, 2026, at 1:00 PM PT / 4:00 PM ET at the St. Regis in San Francisco, CA. A live webcast, accompanying presentation, and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
To learn more about our latest initiatives and priorities, review our Stakeholder Impact Report at https://salesforce.com/stakeholder-impact-report.
Salesforce plans to host a live earnings webcast broadcast at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
Salesforce helps organizations of any size become agentic enterprises - integrating humans, agents, apps, and data on a trusted, unified platform to unlock unprecedented growth and innovation. Visit www.salesforce.com for more information. Mark Murphy
pr@salesforce.com ### "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about the Company's financial and operating results and guidance, which include, but are not limited to, expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, net income per share, operating cash flow growth, operating margin, expected revenue growth, expected foreign currency exchange rate impact, expected current remaining performance obligation growth, expected tax rates or provisions, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, strategic investments, expected restructuring expense or charges, expected timing of product releases and enhancements, and expectations regarding closing and contemplated acquisitions and contributions from acquired companies. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties
materialize or if any of the assumptions prove incorrect, the Company’s results or outcomes could differ materially and adversely from those expressed or implied by our forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements.
The risks and uncertainties referred to above include -- but are not limited to -- risks associated with:
• the effect of the acquisition of Informatica on our operating results, the market price of our common stock our ability to retain and hire key personnel;
• our ability to maintain sufficient security levels and service performance, avoid downtime and prevent, detect and remediate performance degradation and security breaches;
• our reliance on third-party infrastructure providers, including hardware, software, energy and platform providers and the organizations responsible for the development and maintenance of Internet infrastructure;
• uncertainties regarding AI technologies and their integration into our product offerings;
• the evolving landscape related to environmental, social and governance (“ESG”)
• the effect of evolving government regulations, including those related to our industry and providing services on or accessing the Internet, and those addressing ESG matters, data privacy, cybersecurity, cross-border data transfers, government contracting and procurement, and import and export controls;
• current and potential litigation and regulatory investigations involving us or our industry;
• our ability to successfully expand or introduce new services and product features, including related to AI and Agentforce;
• our ability to successfully complete, integrate and realize the benefits from acquisitions or other strategic transactions;
• uncertainties regarding the pace of change and innovation and our ability to compete in the markets in which we participate;
• our ability to successfully execute our business strategy and our business plans, including efforts to expand internationally and related risks;
• our ability to meet our long-term revenue target and profitable growth framework;
• our ability to predict and meet expectations regarding our operating results and cash flows, including revenue and remaining performance obligation, including as a result of the seasonal nature of our sales cycle and the variability in our results arising from the accounting for term license revenue products and some complex transactions;
• our ability to predict and limit customer attrition and costs related to those efforts;
• the demands on our personnel and infrastructure resulting from significant growth in our customer base and operations, including as a result of acquisitions;
• our real estate and office facilities strategy and related costs and uncertainties;
• the performance of our strategic investment portfolio, including fluctuations in the fair value of our investments;
• uncertainties regarding the realizability, valuation and potential availability of certain tax assets;
• uncertainties regarding the effect of geopolitical events, inflationary pressures, market and macroeconomic volatility, financial institution instability, changes in monetary policy, foreign currency exchange rate and interest rate fluctuations, uncertainty regarding changes in trade policies, including trade wars, the threat or imposition of tariffs or other trade restrictions as well as any retaliatory actions, and climate change, natural disasters and actual or threatened public health emergencies on our workforce, business, and operating results;
• uncertainties regarding the impact of expensing stock options and other equity awards;
• the sufficiency of our capital resources, including our ability to execute our share repurchase program and declare future cash dividends;
• uncertainties regarding impacts to our workforce and workplace culture, such as those arising from our current and future office environments or remote work policies or our ability to realize the expected benefits of the Company's restructuring initiatives.
Further information on these and other factors that could affect the Company’s actual results or outcomes is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings it makes with the Securities and Exchange
Commission from time to time. These documents are available on the SEC Filings section of the Financials section of the Company’s website at investor.salesforce.com/financials/.
Salesforce, Inc. assumes no obligation and does not intend to revise or update publicly any forward-looking statements for any reason, except as required by law.
© 2026 Salesforce, Inc. All rights reserved. Salesforce and other marks are trademarks of Salesforce, Inc. Other brands featured herein may be trademarks of their respective owners.
(1) Amounts include amortization of intangible assets acquired through business combinations, as follows:
(3) During the three months ended July 31, 2026 and 2025, gains on strategic investments impacted GAAP diluted net income per share by $2.43 and $0.00 based on a U.S. tax rate of 23.5%, and non-GAAP diluted net income per share by $2.53
and $0.00 based on a non-GAAP tax rate of 20.5% and 22.0%, respectively. During the six months ended July 31, 2026 and 2025, gains (losses) on strategic investments impacted GAAP diluted net income per share by $2.87 and ($0.05) based on a U.S. tax rate of 23.5%, and non-GAAP diluted net income per share by $2.98 and ($0.05) based on a non-GAAP tax rate of 20.5% and 22.0%, respectively.
(1) Amounts include amortization of intangible assets acquired through business combinations as a percentage of total revenues, as follows:
Three Six Months Months Ended July Ended 31, July 31, 2026 2025 2026 2025 Cost of 2 % 2 % 2 % 2 % revenues Sales and 3 2 3 2 marketing
(2) Amounts include stock-based compensation expense as a percentage of total revenues, as follows:
Three Six Months Months Ended July Ended 31, July 31, 2026 2025 2026 2025 Cost of 1 % 1 % 1 % 1 % revenues Research and 3 3 3 3 developm… Sales and 3 3 3 3 marketing General and 1 1 1 1 administ… Restruct… 0 0 0 0
July 31, 2026 January 31, 2026 ────────────────────────────────────────────────────────────────────────────── Assets -unaudited Current assets: Cash and cash $ 8,310 $ 7,327 equivalents Marketable securities 3,093 2,238 Accounts receivable, 6,320 14,339 net Costs capitalized to obtain revenue 2,074 2,075 contracts, net Prepaid expenses and other current 2,286 2,243 assets Total current assets 22,083 28,222 Property and 3,042 3,120 equipment, net Operating lease right-of-use assets, 1,787 2,003 net Noncurrent costs capitalized to obtain 2,870 2,985 revenue contracts, net Strategic investments 11,324 7,591 Goodwill 59,250 57,941 Intangible assets acquired through 6,142 6,815 business combinations, net Deferred tax assets and other assets, 3,122 3,628 net Total assets $ 109,620 $ 112,305 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued expenses and $ 7,018 $ 8,253 other liabilities Operating lease 531 548 liabilities, current Unearned revenue 18,787 24,317 Debt, current 0 4,000 Total current 26,336 37,118 liabilities Noncurrent debt 39,288 10,439 Noncurrent operating 1,924 2,189 lease liabilities Other noncurrent 3,694 3,417 liabilities Total liabilities 71,242 53,163 Stockholders’ equity: Common stock 1 1 Treasury stock, at -55,022 -32,228 cost Additional paid-in 66,029 68,835 capital Accumulated other 263 313 comprehensive income Retained earnings 27,107 22,221 Total stockholders’ 38,378 59,142 equity Total liabilities and stockholders’ $ 109,620 $ 112,305 equity
(1) Includes amortization of intangible assets, depreciation and impairment of fixed assets and amortization and impairment of right-of-use assets.
Remaining performance obligation ("RPO") represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. RPO is influenced by several factors, including seasonality, the timing of renewals, the timing of term license deliveries, average contract terms and foreign currency exchange rates. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of RPO denominated in foreign currencies are revalued each period based on the period end exchange rates. The portion of RPO that is unbilled is not recorded on the condensed consolidated balance sheets.
Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The change in unearned revenue was as follows (in millions):
(1) Other includes, for example, the impact of foreign currency translation as well as contributions from contract assets and business combinations.
(1) To reflect the evolution of its product architecture to deliver the Agentic Enterprise, and consistent with how management evaluates the performance of the business, the Company revised the presentation of its disaggregated revenue disclosures in the first quarter of fiscal 2027 into two primary categories: Agentforce Apps, and Data 360, Headless Platform, and Other. Agentforce Apps is comprised of Agentforce Sales, Agentforce Service, Agentforce Marketing, Agentforce Commerce, Agentforce Apps Flex Credits and Slack. Data 360, Headless Platform, and Other is comprised of Data 360, Data 360 and Platform Flex Credits, Headless Platform, Informatica, Agentforce Mulesoft, Agentforce Tableau and Other. Reclassifications to the prior period were made to conform to the current period presentation and did not affect total subscription and support revenue.
Subscription and support revenues constant currency growth rates by the Company's service offerings, excluding the impacts of hedging gains, were as follows:
Revenue constant currency growth rates by geographical region, excluding the impacts of hedging gains, were as follows:
Current remaining performance obligation constant currency growth rates were as follows:
The following tables reflect selected GAAP results reconciled to Non-GAAP results.
(2) Stock-based compensation expense, excluding stock-based compensation expense related to restructuring, was as follows:
(3) Stock-based compensation expense included in the GAAP to non-GAAP reconciliation tables above excludes stock-based compensation expense related to restructuring initiatives for each of the three months ended July 31, 2026 and 2025 of $2 million and $0 million, respectively, and for the six months ended July 31, 2026 and 2025 of $12 million and $15 million, respectively, which are included in the restructuring and acquisition-related costs line.
(4) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non- GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the amortization of purchased intangibles, stock-based compensation expense, charges associated with the Company's restructuring initiatives and acquisition-related costs.
Non-GAAP Financial Measures: This press release includes information about non- GAAP operating margin, non-GAAP net income per share, non-GAAP tax rates, free cash flow, constant currency revenue and revenue growth rate, constant currency subscription and support revenue growth rate and constant currency current remaining performance obligation growth rates (collectively the “non-GAAP financial measures”). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s condensed consolidated financial statements prepared in accordance with GAAP. Management uses both GAAP and non-GAAP financial measures when planning, monitoring and evaluating the Company’s performance.
The primary purpose of using non-GAAP financial measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does. Management believes that supplementing GAAP disclosure with non-GAAP disclosure provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further to the extent that other companies use similar methods in calculating non-GAAP financial measures, the provision of supplemental non-GAAP information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP operating results.
Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the following items: stock-based compensation expense, amortization of acquisition-related intangibles, and charges associated with the Company's restructuring initiatives and acquisition-related costs. Non-GAAP net income per share excludes, to the extent applicable, the impact of the following items: stock-based compensation expense, amortization of purchased intangibles, charges associated with the Company's restructuring initiatives and acquisition-related costs, and income tax adjustments. These items are excluded because the decisions that give rise to them are not made to increase revenue in a particular period, but instead for the Company’s long-term benefit over multiple periods.
As described above, the Company excludes or adjusts for the following in its non-GAAP results and guidance:
• Stock-Based Compensation Expense: The Company’s compensation strategy includes the use of stock-based compensation expense to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.
• Amortization of Purchased Intangibles: The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and, in some cases, acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, which is not typically affected by operations during any particular period. Although the Company excludes the amortization of purchased intangibles from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
• Restructuring: Restructuring charges are costs associated with a formal restructuring plan and may include employee notice period costs and severance payments, lease or contract termination costs, asset impairments, accelerated depreciation and amortization and other related expenses. The Company excludes these restructuring charges because they are distinct from ongoing operational costs and it does not believe they are reflective of current and expected future business performance and operating results.
• Acquisition-related costs: Acquisition-related expenses include transaction and integration expenses for consummated transactions that are incurred prior to the acquisition closing or within the first year of the acquisition close date, which may include transaction or integration expenses paid to third parties, one-time severance and retention bonuses for acquired and transitional employees, or exit costs associated with an acquired company’s long-lived assets, such as real estate, or other long-term commercial agreements. The Company excludes these acquisition-related expenses because they are distinct from ongoing operational costs and the Company does not believe they are reflective of current and expected future business performance and operating results.
• Gains (Losses) on Strategic Investments, net: The Company records all fair value adjustments to its equity securities held within the strategic investment portfolio through the statement of operations. As it is not possible to forecast future gains and losses, the Company assumes no change to the value of its strategic investment portfolio in its GAAP and non-GAAP estimates for future periods, including its guidance. Gains (Losses) on Strategic Investments, net, are included in its GAAP financial statements.
• Income Tax Effects and Adjustments: The Company utilizes a fixed long-term projected non-GAAP tax rate in order to provide better consistency across the interim reporting periods by eliminating the effects of items such as changes in the tax valuation allowance and tax effects of acquisition-related costs, since each of these can vary in size and frequency. When projecting this long-term rate, the Company evaluated a three-year financial projection that excludes the direct impact of the following non-cash items: stock-based compensation expenses and the amortization of purchased intangibles. The projected rate also considers factors including the Company’s expected tax structure, its tax positions in various jurisdictions and key legislation in major jurisdictions where the Company operates. For fiscal 2026, the Company used a projected non-GAAP tax rate of 22.0%. For fiscal 2027, the Company uses a projected non-GAAP tax rate of 20.5%, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the Company’s geographic earnings mix due to acquisition activity or other changes to the Company’s strategy or business operations. The Company will re-evaluate its long-term rate as appropriate.
The Company presents constant currency information to provide a framework for assessing how the Company's underlying business performed excluding the effect of foreign currency rate fluctuations and the impact of hedging gains (losses). To present constant currency revenue growth rates, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the weighted average exchange rate for the quarter being compared to rather than the actual exchange rates in effect during that period. To present current remaining performance obligation growth rates on a constant currency basis, current remaining performance obligation balances in local currencies in previous comparable periods are converted using the United States dollar currency exchange rate as of the most recent balance sheet date.
The Company defines the non-GAAP measure free cash flow as GAAP net cash provided by operating activities, less capital expenditures. Trailing twelve months free cash flow is calculated as GAAP net cash provided by operating activities for the aggregate four preceding fiscal quarters, less capital expenditures over that same period.
: The Company defines Agentforce and Data 360 annual recurring revenue ("ARR") as the annualized recurring value of active Data 360 and certain generative artificial intelligence ("AI") subscription agreements, including those for Agentforce, generative AI products and features, and Headless 360, that were executed at the end of the reporting period. The Company defines Informatica Cloud ARR as the annualized recurring value of active Informatica Cloud subscription agreements that were executed at the end of the reporting period. From time to time, we may update this metric to incorporate new products, feature offerings, or acquired technologies that meet its definition. Beginning in Q2 FY27, Agentforce ARR includes our AI offerings Slackbot and Headless 360.
The Company defines Net New Annual Order Value ("NNAOV") as the net change in the annual order value of our customer subscription agreements during a given period. NNAOV is calculated as the sum of: (i) the annualized contract value from new and existing customers who enter into subscription agreements during the period; less (ii) the reduction in annualized order value from customer cancellations, non-renewals, or downgrades during the period.
The Company defines an Agentic Work Unit ("AWU") as a measure of discrete tasks executed by AI agents in production across the Salesforce platform, including Agentforce and Slack. AWUs represent the conversion of generative AI capabilities into measurable business outputs, such as resolving customer cases, updating records or triggering automated workflows.
Full text with the tables
Exhibit 99.1
Salesforce Delivers Record Second Quarter Fiscal 2027 Results
cRPO growth accelerates to 14% Y/Y CC; Raises FY27 revenue guidance by $200M,
$300M in CC
SAN FRANCISCO, Calif. - August 26, 2026 -
Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its
second quarter fiscal 2027 ended July 31, 2026.
Second
Quarter
Financial Highlights
• Current remaining performance obligation ("cRPO") of $33.5 billion, up 14%
year-over-year ("Y/Y") and in constant currency ("CC")
• Remaining performance obligation of $66.3 billion, up 11% Y/Y
• Subscription and support revenue of $10.8 billion, up 12% Y/Y and 11% in CC,
including $440 million Informatica contribution
• Revenue of $11.3 billion, up 11% Y/Y and in CC, including $456 million
Informatica contribution
• GAAP operating margin of 20.5% and non-GAAP operating margin of 34.1%
• GAAP diluted net income per share of $4.29, up 119% Y/Y and non-GAAP diluted
net income per share of $5.90, up 103% Y/Y
• Operating cash flow of $1.3 billion, up 71% Y/Y, and free cash flow of $1.1
billion, up 81% Y/Y
• Returned $364 million in dividends to shareholders and continued to execute
against $25 billion accelerated share repurchase (“ASR”)
“We just delivered one of our best quarters ever, outperforming across every key
metric,” said Marc Benioff, Chair and CEO, Salesforce. “AI is delivering value
across every layer of our platform. We’re seeing incredible demand for our AI
and data products, with ARR about to cross $4 billion. And with AIforce, our
trusted enterprise harness, we’re unlocking the data, workflows, business logic,
actions, and governance inside Salesforce and making it available to every
agent, model, and interface. This is how we are turning AI into customer success
at unprecedented scale."
“AI is amplifying the power, reach, and value of our platform,” said Robin
Washington, President and Chief Financial and Operating Officer, Salesforce.
“NNAOV growth is the strongest it's been in four years, keeping us on track for
second-half organic revenue reacceleration.”
Salesforce Company Highlights
• Agentforce and Data 360 annual recurring revenue ("ARR") reached nearly $3.9
billion, up over 210% Y/Y
• Agentforce ARR exceeded $1.5 billion, up over 240% Y/Y. Effective Q2 FY27,
Agentforce ARR includes our AI offerings, Slackbot and Headless 360
• 7.0 billion Agentic Work Units (“AWUs”) delivered to date across Agentforce
and Slack, with 3.2 billion in Q2, growing 97% quarter-over-quarter ("Q/Q")
• Slack delivered its fastest quarterly Net New Annual Order Value ("NNAOV")
growth since acquisition as Slackbot users grew over 150% Q/Q
• Bookings from Agentforce One Edition and Agentforce for Apps, premium SKUs
anchored in Sales and Service including the value from Agentic capabilities,
more than doubled Q/Q
• In Q2, Data 360 ingested 104 trillion records, up 355% Y/Y, including 82
trillion via Zero Copy, up 731% Y/Y, and processed 22 terabytes of unstructured
data
Guidance
Salesforce raises full year FY27 revenue guidance to $46.1 billion to $46.4
billion, up 11% - 12% Y/Y and 11% Y/Y in CC. In June, Salesforce announced
separate definitive agreements to acquire Contentful and Fin. The Company now
expects both transactions to close independently in the coming weeks, during the
third quarter of Salesforce's fiscal year 2027. These acquisitions have been
incorporated into all metrics within the Company's updated guidance, with the
exception of cRPO; the guidance is conditional upon the closing of these
transactions.
With the U.S. dollar strengthening in Q2, Salesforce now expects a reduced
currency tailwind for the business relative to prior guidance. This currency
movement has been incorporated into the Company's updated guidance.
• Initiates third quarter FY27 revenue guidance of $11.42 billion to $11.5
billion, up 11% - 12% Y/Y and in CC, including slightly above 4pts Informatica
contribution
• Initiates third quarter FY27 cRPO growth guidance of approximately 14% Y/Y and
in CC, which does not include any contribution from the pending acquisitions of
Contentful and Fin
• Raises full year FY27 revenue guidance, now expects full year FY27 revenue of
$46.1 billion to $46.4 billion, up 11% - 12% Y/Y and 11% in CC, including
slightly above 3pts Informatica contribution. The $200M raise, $300 million CC,
reflects $100 million of organic growth, $200 million from the pending
Contentful and Fin acquisitions, and $100M FX headwind
• Raises full year FY27 subscription and support revenue growth guidance to
slightly above 12% Y/Y and slightly under 12% in CC, including slightly above
3pts Informatica contribution
• Updates full year FY27 GAAP operating margin guidance to 20.1%, and maintains
non-GAAP operating margin guidance of 34.3%
• Maintains full year FY27 operating cash flow growth guidance and free cash
flow growth guidance of approximately 4% - 5% Y/Y
• Final settlement of the company's $25 billion ASR is expected in October 2026.
Salesforce's guidance includes GAAP and non-GAAP financial measures. The
following tables summarize Salesforce's guidance for the third quarter fiscal
2027 and full-year fiscal 2027:
Q3 FY27 Guidance
GAAP Non-GAAP(1)
Revenue $11.42 - $11.5 billion N/A
Revenue growth(2) 11% - 12% 11% - 12% CC, $0M Y/Y FX
Includes slightly
above 4pts Informatica
contribution
Diluted net income per $1.81 - $1.83 $3.42 - $3.44
share
Current remaining Approximately 14%
performance obligation Approximately 14% CC,$100M Y/Y FX
growth(3)
Full Year FY27 Guidance
GAAP Non-GAAP(1)
Revenue $46.1 - $46.4 billion N/A
Revenue growth(2) 11% - 12% Approximately 11% CC,
$200M Y/Y FX
Includes slightly
above 3pts Informatica
contribution
Subscription and
support revenue Slightly above 12% Slightly under 12% CC
growth(4)
Includes slightly
above 3pts Informatica
contribution
Operating margin 20.1% 34.3%
Diluted net income per $10.21 - $10.25 $16.67 - $16.71
share
Operating cash flow Approximately 4% - 5% N/A
growth
Free cash flow growth N/A Approximately 4% - 5%
Capital expenditures N/A Approximately 1.5% of
revenue
(1) Non-GAAP CC revenue growth, non-GAAP CC remaining performance obligation
growth, non-GAAP CC subscription and support revenue growth, non-GAAP operating
margin, non-GAAP diluted net income per share, and free cash flow growth are
non-GAAP financial measures. See below for an explanation of non-GAAP financial
measures. The Company's shares used in computing GAAP diluted net income per
share guidance and non-GAAP diluted net income per share guidance reflect the
reduction to share count from the 103 million shares initially delivered under
the ASR, but excludes any impact to share count from the final ASR settlement or
potential Q3 - Q4 FY27 open-market repurchase activity under our share
repurchase program.
(2) Revenue FX impact is calculated by taking the current period rates compared
to the prior period average rates.
(3) Current remaining performance obligation FX impact is calculated by taking
the current period rates compared to the prior period ending rates.
(4) Subscription and support revenue excludes professional services revenue.
The following is a reconciliation of GAAP operating margin guidance to non-GAAP
operating margin guidance for the full year:
Full Year FY27
Guidance
GAAP operating margin(1) 20.1%
Plus
Amortization of purchased intangibles(2) 4.4%
Stock-based compensation expense(2)(3) 9.0%
Restructuring and acquisition-related costs(2)(3) 0.8%
Non-GAAP operating margin(1) 34.3%
(1) GAAP operating margin is the proportion of GAAP income from operations as a
percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-
GAAP income from operations as a percentage of GAAP revenue.
(2) The percentages shown above have been calculated based on the midpoint of
the low and high ends of the revenue guidance for full year FY27.
(3) The percentages shown in the restructuring and acquisition-related costs
line have been calculated based on charges associated with the Company's
restructuring initiatives and acquisition-related costs. Stock-based
compensation expense excludes stock-based compensation expense related to the
Company's restructuring initiatives, which is included in the restructuring and
acquisition-related costs line.
The following is a per share reconciliation of GAAP diluted net income per share
to non-GAAP diluted net income per share guidance for the next quarter and the
full year:
GAAP
diluted net
income per
share
range(1)(2) Fiscal 2027 $1.81 - $10.21 -
Plus Q3 $1.83 FY27 $10.25
──────────────────────────────────────────────────────────────────────────────
Amortizati…
of $ 0.57 $ 2.45
purchased
intangibles
Stock-based
compensati… $ 1.29 $ 4.96
expense
Restructur…
and $ 0.12 $ 0.42
acquisitio…
costs(3)
Less
Income tax
effects and $ -0.37 $ -1.37
adjustment…
Non-GAAP
diluted net $3.42 - $16.67 -
income per $3.44 $16.71
share(2)
Shares used
in
computing
basic net 824 835
income per
share
(millions)…
Shares used
in
computing
diluted net 827 838
income per
share
(millions)…
(1) The Company's GAAP tax provision is expected to be approximately 21.8% for
the three months ended October 31, 2026 and 22.3% for the year ended January 31,
2027. The GAAP tax rates may fluctuate due to discrete tax items, changes in
valuation allowance assessment, future acquisitions, or other transactions.
(2) The Company's projected GAAP and non-GAAP diluted net income per share
assumes no change to the value of our strategic investment portfolio as it is
not possible to forecast future gains and losses. The impact of future gains or
losses from the Company’s strategic investment portfolio could be material.
(3) The estimated impact to GAAP diluted net income per share is in connection
with the Company's restructuring initiatives and acquisition-related costs.
(4) The Company’s non-GAAP tax provision uses a long-term projected tax rate of
20.5%, which reflects currently available information and could be subject to
change.
(5) The Company's shares used in computing GAAP net income per share guidance
and non-GAAP net income per share guidance reflect the reduction to share count
from the 103 million shares initially delivered under the ASR, but excludes any
impact to share count from the final ASR settlement or potential Q3 - Q4 FY27
open-market repurchase activity under our share repurchase program.
For additional information regarding non-GAAP financial measures see the
reconciliation of results and related explanations below.
Management will provide further commentary around these guidance assumptions on
its earnings call.
Product Releases and Enhancements
Salesforce releases major updates for our core platform and apps three times a
year, with additional updates happening regularly across our portfolio. These
releases are a result of significant research and development investments made
over multiple years, and are designed to help customers drive cost savings,
boost efficiency, and build trust.
Salesforce leaders will participate in a Q2 FY27 Product Adoption & Momentum
webinar on Tuesday, September 1, 2026, at 8:00 AM PT / 11:00 AM ET. A live
webcast and replay details of the event will be available on the Salesforce
Investor Relations website at www.salesforce.com/investor.
To learn more about our newest innovations and product release highlights,
including our latest Summer 2026 Product Release, see FY27 Q2 Product Releases
and Announcements at https://www.salesforce.com/news/stories/fy27-q2-highlights/
and see our latest major release at www.salesforce.com/releases.
Investor Day
Salesforce will hold its Investor Day in conjunction with Dreamforce on
Wednesday, September 16, 2026, at 1:00 PM PT / 4:00 PM ET at the St. Regis in
San Francisco, CA. A live webcast, accompanying presentation, and replay details
of the event will be available on the Salesforce Investor Relations website at
www.salesforce.com/investor.
Environmental, Social, and Governance (ESG) Strategy
To learn more about our latest initiatives and priorities, review our
Stakeholder Impact Report at https://salesforce.com/stakeholder-impact-report.
Quarterly Earnings Webcast
Salesforce plans to host a live earnings webcast broadcast at 2:00 p.m. (PT) /
5:00 p.m. (ET) to discuss its financial results with the investment community. A
live webcast and replay details of the event will be available on the Salesforce
Investor Relations website at www.salesforce.com/investor.
About Salesforce
Salesforce helps organizations of any size become agentic enterprises -
integrating humans, agents, apps, and data on a trusted, unified platform to
unlock unprecedented growth and innovation. Visit www.salesforce.com for more
information.
Mark Murphy
Salesforce
Investor Relations
investor@salesforce.com
Salesforce
Public Relations
pr@salesforce.com
###
"Safe harbor" statement under the Private Securities Litigation Reform Act of
1995: This press release contains forward-looking statements about the Company's
financial and operating results and guidance, which include, but are not limited
to, expected GAAP and non-GAAP financial and other operating and non-operating
results, including revenue, net income, net income per share, operating cash
flow growth, operating margin, expected revenue growth, expected foreign
currency exchange rate impact, expected current remaining performance obligation
growth, expected tax rates or provisions, stock-based compensation expenses,
amortization of purchased intangibles, shares outstanding, market growth,
strategic investments, expected restructuring expense or charges, expected
timing of product releases and enhancements, and expectations regarding closing
and contemplated acquisitions and contributions from acquired companies. The
achievement or success of the matters covered by such forward-looking statements
involves risks, uncertainties and assumptions. If any such risks or
uncertainties
materialize or if any of the assumptions prove incorrect, the Company’s results
or outcomes could differ materially and adversely from those expressed or
implied by our forward-looking statements. Readers are cautioned not to place
undue reliance on such forward-looking statements.
The risks and uncertainties referred to above include -- but are not limited to
-- risks associated with:
• the effect of the acquisition of Informatica on our operating results, the
market price of our common stock our ability to retain and hire key personnel;
• our ability to maintain sufficient security levels and service performance,
avoid downtime and prevent, detect and remediate performance degradation and
security breaches;
• our ability to secure sufficient data center capacity;
• our reliance on third-party infrastructure providers, including hardware,
software, energy and platform providers and the organizations responsible for
the development and maintenance of Internet infrastructure;
• uncertainties regarding AI technologies and their integration into our product
offerings;
• the evolving landscape related to environmental, social and governance (“ESG”)
matters;
• the effect of evolving government regulations, including those related to our
industry and providing services on or accessing the Internet, and those
addressing ESG matters, data privacy, cybersecurity, cross-border data
transfers, government contracting and procurement, and import and export
controls;
• current and potential litigation and regulatory investigations involving us or
our industry;
• our ability to successfully expand or introduce new services and product
features, including related to AI and Agentforce;
• our ability to successfully complete, integrate and realize the benefits from
acquisitions or other strategic transactions;
• uncertainties regarding the pace of change and innovation and our ability to
compete in the markets in which we participate;
• our ability to successfully execute our business strategy and our business
plans, including efforts to expand internationally and related risks;
• our ability to meet our long-term revenue target and profitable growth
framework;
• our ability to predict and meet expectations regarding our operating results
and cash flows, including revenue and remaining performance obligation,
including as a result of the seasonal nature of our sales cycle and the
variability in our results arising from the accounting for term license revenue
products and some complex transactions;
• our ability to predict and limit customer attrition and costs related to those
efforts;
• the demands on our personnel and infrastructure resulting from significant
growth in our customer base and operations, including as a result of
acquisitions;
• our real estate and office facilities strategy and related costs and
uncertainties;
• the performance of our strategic investment portfolio, including fluctuations
in the fair value of our investments;
• our ability to protect our intellectual property rights;
• our ability to maintain and enhance our brands;
• uncertainties regarding the realizability, valuation and potential
availability of certain tax assets;
• the impact of new accounting pronouncements and tax rules;
• uncertainties affecting our ability to estimate our tax rate;
• uncertainties regarding the effect of geopolitical events, inflationary
pressures, market and macroeconomic volatility, financial institution
instability, changes in monetary policy, foreign currency exchange rate and
interest rate fluctuations, uncertainty regarding changes in trade policies,
including trade wars, the threat or imposition of tariffs or other trade
restrictions as well as any retaliatory actions, and climate change, natural
disasters and actual or threatened public health emergencies on our workforce,
business, and operating results;
• uncertainties regarding the impact of expensing stock options and other equity
awards;
• the sufficiency of our capital resources, including our ability to execute our
share repurchase program and declare future cash dividends;
• our ability to comply with our debt covenants and lease obligations; and
• uncertainties regarding impacts to our workforce and workplace culture, such
as those arising from our current and future office environments or remote work
policies or our ability to realize the expected benefits of the Company's
restructuring initiatives.
Further information on these and other factors that could affect the Company’s
actual results or outcomes is included in the reports on Forms 10-K, 10-Q and
8-K and in other filings it makes with the Securities and Exchange
Commission from time to time. These documents are available on the SEC Filings
section of the Financials section of the Company’s website at
investor.salesforce.com/financials/.
Salesforce, Inc. assumes no obligation and does not intend to revise or update
publicly any forward-looking statements for any reason, except as required by
law.
© 2026 Salesforce, Inc. All rights reserved. Salesforce and other marks are
trademarks of Salesforce, Inc. Other brands featured herein may be trademarks of
their respective owners.
#
Salesforce, Inc.
Condensed Consolidated Statements of Operations
(in millions, except per share data)
(Unaudited)
Three Six
Months Months
Ended Ended
July July
2 31, 31,
Reven… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Subsc…
and $ 10,820 $ 9,690 $ 21,413 $ 18,987
suppo…
Profe…
servi… 525 546 1,065 1,078
and
other
Total 11,345 10,236 22,478 20,065
reven…
Cost
of
reven…
(1)(2…
Subsc…
and 2,021 1,645 3,974 3,256
suppo…
Profe…
servi… 628 597 1,245 1,251
and
other
Total
cost 2,649 2,242 5,219 4,507
of
reven…
Gross 8,696 7,994 17,259 15,558
profit
Opera…
expen…
(1)(2…
Resea…
and 1,687 1,481 3,314 2,941
devel…
Sales
and 3,859 3,443 7,628 6,872
marke…
Gener…
and 725 734 1,465 1,431
admin…
Restr… 94 4 174 40
Total
opera… 6,365 5,662 12,581 11,284
expen…
Income
from 2,331 2,332 4,678 4,274
opera…
Inter… -473 -67 -790 -135
expen…
Gains
(loss…
on 2,613 6 3,171 -57
strat…
inves…
net
Other 81 135 214 298
income
Income
before
provi… 4,552 2,406 7,273 4,380
for
income
taxes
Provi…
for -1,026 -519 -1,640 -952
income
taxes
Net $ 3,526 $ 1,887 $ 5,633 $ 3,428
income
Basic
net
income $ 4.30 $ 1.97 $ 6.67 $ 3.58
per
share
Dilut…
net
income $ 4.29 $ 1.96 $ 6.67 $ 3.55
per
share
(3)
Shares
used
in
compu…
basic 820 956 844 958
net
income
per
share
Shares
used
in
compu…
dilut… 821 962 845 966
net
income
per
share
(1) Amounts include amortization of intangible assets acquired through business
combinations, as follows:
Three
Months Six Months
Ended July Ended July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cost of $ 234 $ 150 $ 478 $ 312
revenues
Sales and 288 230 605 463
marketing
(2) Amounts include stock-based compensation expense, as follows:
Three
Months Six Months
Ended July Ended July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cost of $ 147 $ 126 $ 285 $ 277
revenues
Research
and 301 280 611 555
developm…
Sales and 345 293 665 578
marketing
General
and 111 94 213 182
administ…
Restruct… 2 0 12 15
(3) During the three months ended July 31, 2026 and 2025, gains on strategic
investments impacted GAAP diluted net income per share by $2.43 and $0.00 based
on a U.S. tax rate of 23.5%, and non-GAAP diluted net income per share by $2.53
and $0.00 based on a non-GAAP tax rate of 20.5% and 22.0%, respectively. During
the six months ended July 31, 2026 and 2025, gains (losses) on strategic
investments impacted GAAP diluted net income per share by $2.87 and ($0.05)
based on a U.S. tax rate of 23.5%, and non-GAAP diluted net income per share by
$2.98 and ($0.05) based on a non-GAAP tax rate of 20.5% and 22.0%, respectively.
Salesforce, Inc.
Condensed Consolidated Statements of Operations
(As a percentage of total revenues)
(Unaudited)
Three Six
Months Months
Ended Ended
July July
31, 31,
2026 2025 2026 2025
Reven…
Subsc…
and 95 % 95 % 95 % 95 %
suppo…
Profe…
servi… 5 5 5 5
and
other
Total 100 100 100 100
reven…
Cost
of
reven…
(1)(2…
Subsc…
and 18 16 18 16
suppo…
Profe…
servi… 5 6 5 6
and
other
Total
cost 23 22 23 22
of
reven…
Gross 77 78 77 78
profit
Opera…
expen…
(1)(2…
Resea…
and 15 14 15 15
devel…
Sales
and 34 34 34 34
marke…
Gener…
and 6 7 6 7
admin…
Restr… 1 0 1 0
Total
opera… 56 55 56 56
expen…
Income
from 21 23 21 22
opera…
Inter… -4 0 -4 0
expen…
Gains
(loss…
on 23 0 14 -1
strat…
inves…
net
Other 0 1 1 1
income
Income
before
provi… 40 24 32 22
for
income
taxes
Provi…
for -9 -6 -7 -5
income
taxes
Net 31 % 18 % 25 % 17 %
income
(1) Amounts include amortization of intangible assets acquired through business
combinations as a percentage of total revenues, as follows:
Three Six
Months Months
Ended July Ended
31, July 31,
2026 2025 2026 2025
Cost of 2 % 2 % 2 % 2 %
revenues
Sales and 3 2 3 2
marketing
(2) Amounts include stock-based compensation expense as a percentage of total
revenues, as follows:
Three Six Months
Months Ended July
Ended 31,
July 31,
2026 2025 2026 2025
Cost of 1 % 1 % 1 % 1 %
revenues
Research
and 3 3 3 3
developm…
Sales and 3 3 3 3
marketing
General
and 1 1 1 1
administ…
Restruct… 0 0 0 0
Salesforce, Inc.
Condensed Consolidated Balance Sheets
(in millions)
July 31, 2026 January 31, 2026
──────────────────────────────────────────────────────────────────────────────
Assets -unaudited
Current assets:
Cash and cash $ 8,310 $ 7,327
equivalents
Marketable securities 3,093 2,238
Accounts receivable, 6,320 14,339
net
Costs capitalized to
obtain revenue 2,074 2,075
contracts, net
Prepaid expenses and
other current 2,286 2,243
assets
Total current assets 22,083 28,222
Property and 3,042 3,120
equipment, net
Operating lease
right-of-use assets, 1,787 2,003
net
Noncurrent costs
capitalized to obtain 2,870 2,985
revenue contracts,
net
Strategic investments 11,324 7,591
Goodwill 59,250 57,941
Intangible assets
acquired through 6,142 6,815
business
combinations, net
Deferred tax assets
and other assets, 3,122 3,628
net
Total assets $ 109,620 $ 112,305
Liabilities and
stockholders’ equity
Current liabilities:
Accounts payable,
accrued expenses and $ 7,018 $ 8,253
other liabilities
Operating lease 531 548
liabilities, current
Unearned revenue 18,787 24,317
Debt, current 0 4,000
Total current 26,336 37,118
liabilities
Noncurrent debt 39,288 10,439
Noncurrent operating 1,924 2,189
lease liabilities
Other noncurrent 3,694 3,417
liabilities
Total liabilities 71,242 53,163
Stockholders’ equity:
Common stock 1 1
Treasury stock, at -55,022 -32,228
cost
Additional paid-in 66,029 68,835
capital
Accumulated other 263 313
comprehensive income
Retained earnings 27,107 22,221
Total stockholders’ 38,378 59,142
equity
Total liabilities and
stockholders’ $ 109,620 $ 112,305
equity
Salesforce, Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(Unaudited)
Three Six
Months Months
Ended Ended
2 July July
Opera… 31, 31,
activ… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 3,526 $ 1,887 $ 5,633 $ 3,428
income
Adjus…
to
recon…
net
income
to
net
cash
provi…
by
opera…
activ…
Depre…
and 966 817 1,951 1,660
amort…
(1)
Amort…
of
costs
capit…
to 589 544 1,173 1,089
obtain
reven…
contr…
net
Stock…
compe… 906 793 1,763 1,607
expen…
(Gain…
losses
on -2,613 -6 -3,171 57
strat…
inves…
net
Chang…
in
assets
and
liabi…
net
of
busin…
combi…
Accou…
recei… -1,396 -1,242 8,035 6,349
net
Costs
capit…
to
obtain -548 -406 -1,057 -771
reven…
contr…
net
Prepa…
expen…
and
other
curre… 672 -32 510 -513
assets
and
other
assets
Accou…
payab…
and
accru… 891 -217 -1,006 -1,224
expen…
and
other
liabi…
Opera…
lease -147 -154 -285 -278
liabi…
Unear… -1,577 -1,244 -5,576 -4,188
reven…
Net
cash
provi… 1,269 740 7,970 7,216
by
opera…
activ…
Inves…
activ…
Busin…
combi…
net of -52 -54 -1,504 -54
cash
acqui…
Purch…
of -958 -174 -1,283 -323
strat…
inves…
Sales
of 179 38 594 44
strat…
inves…
Purch…
of -712 -1,118 -1,801 -3,204
marke…
secur…
Sales
of 357 1,179 709 1,584
marke…
secur…
Matur…
of 160 1,429 221 1,865
marke…
secur…
Capit… -171 -135 -316 -314
expen…
Net
cash
provi…
by -1,197 1,165 -3,380 -402
(used
in)
inves…
activ…
Finan…
activ…
Proce…
from
issua…
of 0 0 24,842 0
debt,
net of
issua…
costs
Repur…
of -84 -2,225 -27,3… -4,858
common
stock
Payme…
for
taxes
relat…
to net -77 -12 -327 -12
share
settl…
of
equity
awards
Proce…
from
emplo… 79 232 309 526
stock
plans
Princ…
payme…
on -176 -99 -306 -278
finan…
oblig…
Payme…
of
divid… -364 -399 -729 -801
and
divid…
equiv…
Net
cash
used -622 -2,503 -3,543 -5,423
in
finan…
activ…
Effect
of
excha… -75 35 -64 126
rate
chang…
Net
incre…
(decr…
in -625 -563 983 1,517
cash
and
cash
equiv…
Cash
and
cash
equiv… 8,935 10,928 7,327 8,848
begin…
of
period
Cash
and
cash $ 8,310 $ 10,365 $ 8,310 $ 10,365
equiv…
end of
period
(1) Includes amortization of intangible assets, depreciation and impairment of
fixed assets and amortization and impairment of right-of-use assets.
Salesforce, Inc.
Additional Metrics
(Unaudited)
Supplemental Revenue Analysis
Remaining Performance Obligation
Remaining performance obligation ("RPO") represents contracted revenue that has
not yet been recognized, which includes unearned revenue and unbilled amounts
that will be recognized as revenue in future periods. RPO is influenced by
several factors, including seasonality, the timing of renewals, the timing of
term license deliveries, average contract terms and foreign currency exchange
rates. Remaining performance obligation is also impacted by acquisitions.
Unbilled portions of RPO denominated in foreign currencies are revalued each
period based on the period end exchange rates. The portion of RPO that is
unbilled is not recorded on the condensed consolidated balance sheets.
RPO consisted of the following (in billions):
As of July 31, 2026 33.5 32.8 66.3
As of April 30, 2026 33.6 34.3 67.9
As of January 31, 2026 Current 35.1 Noncurrent 37.3 Total 72.4
────────────────────────────────────────────────────────────────────────────
As of October 31, 2025 29.4 30.1 59.5
As of July 31, 2025 29.4 30.5 59.9
Unearned Revenue
Unearned revenue represents amounts that have been invoiced in advance of
revenue recognition and is recognized as revenue when transfer of control to
customers has occurred or services have been provided. The change in unearned
revenue was as follows (in millions):
Three Six
Months Months
Ended Ended
2026 July 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Unearn…
revenu…
beginn… $ 20,363 $ 17,799 $ 24,317 $ 20,743
of
period
Billin…
and 9,769 8,992 16,948 15,877
other
(1)
Revenue
recogn… -10,877 -9,684 -21,363 -18,895
over
time
Revenue
recogn…
at a -468 -552 -1,115 -1,170
point
in time
Unearn…
revenu… $ 18,787 $ 16,555 $ 18,787 $ 16,555
end of
period
(1) Other includes, for example, the impact of foreign currency translation as
well as contributions from contract assets and business combinations.
Disaggregation of Revenue
Subscription and Support Revenue by the Company's service offerings (1)
Subscription and support revenues consisted of the following (in millions):
Three Six
Months Months
Ended Ended
2026 July 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Agentfo… $ 7,193 $ 6,682 $ 14,102 $ 13,027
Apps
Data
360,
Headless 3,618 3,008 7,299 5,960
Platfor…
and
Other
Hedging 9 0 12 0
gains
Total
Subscri…
and $ 10,820 $ 9,690 $ 21,413 $ 18,987
Support
Revenue
(1) To reflect the evolution of its product architecture to deliver the Agentic
Enterprise, and consistent with how management evaluates the performance of the
business, the Company revised the presentation of its disaggregated revenue
disclosures in the first quarter of fiscal 2027 into two primary categories:
Agentforce Apps, and Data 360, Headless Platform, and Other. Agentforce Apps is
comprised of Agentforce Sales, Agentforce Service, Agentforce Marketing,
Agentforce Commerce, Agentforce Apps Flex Credits and Slack. Data 360, Headless
Platform, and Other is comprised of Data 360, Data 360 and Platform Flex
Credits, Headless Platform, Informatica, Agentforce Mulesoft, Agentforce Tableau
and Other. Reclassifications to the prior period were made to conform to the
current period presentation and did not affect total subscription and support
revenue.
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in millions):
Three Six
Months Months
Ended Ended
2026 July 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Americ… $ 7,404 $ 6,736 $ 14,637 $ 13,205
Europe 2,764 2,429 5,518 4,766
Asia 1,168 1,071 2,311 2,094
Pacific
Hedging 9 0 12 0
gains
Total $ 11,345 $ 10,236 $ 22,478 $ 20,065
Revenue
Constant Currency Growth Rates
Subscription and support revenues constant currency growth rates by the
Company's service offerings, excluding the impacts of hedging gains, were as
follows:
Three Months Three Months Three Months
Ended Ended Ended
July 31, 2026 April 30, 2026 July 31, 2025
Compared to Compared to Compared to Three
Three Months Three Months Months
Ended July 31, Ended April 30, Ended July 31,
2025 2025 2024
──────────────────────────────────────────────────────────────────────────────
Agentforce Apps 8% 7% 7%
Data 360,
Headless 20% 23% 14%
Platform, and
Other
Total growth 11% 12% 9%
Revenue constant currency growth rates by geographical region, excluding the
impacts of hedging gains, were as follows:
Three Months Three Months
Ended Three Months Ended Ended
July 31, 2026 April 30, 2026 July 31, 2025
Compared to Three Compared to Three Compared to Three
Months Months Months
Ended July 31, Ended April 30, Ended July 31,
2025 2025 2024
──────────────────────────────────────────────────────────────────────────────
Americas 10% 11% 9%
Europe 13% 12% 7%
Asia Pacific 12% 12% 11%
Total growth 11% 12% 9%
Current remaining performance obligation constant currency growth rates were as
follows:
July 31, 2026 April 30, 2026 July 31, 2025
Compared to Compared to Compared to
July 31, 2025 April 30, 2025 July 31, 2024
──────────────────────────────────────────────────────────────────
Total growth 14% 13% 10%
Salesforce, Inc.
GAAP Results Reconciled to Non-GAAP Results
The following tables reflect selected GAAP results reconciled to Non-GAAP
results.
(in millions, except per share data)
(Unaudited)
Three Six
Mont… Mont…
Non… Ended Ended
inc… July July
from 31, 31,
ope… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
inc… $ 2,331 $ 2,3… $ 4,6… $ 4,274
from
ope…
Plu…
Amo…
of
pur… 522 380 1,0… 775
int…
(1)
Sto…
com… 904 793 1,7… 1,592
exp…
(2)…
Res…
and 115 4 211 40
acq…
cos…
Non…
inc… $ 3,872 $ 3,5… $ 7,7… $ 6,681
from
ope…
Non…
ope…
mar…
as a
per…
of
rev…
Tot… $ 11,3… $ 10,… $ 22,… $ 20,0…
rev…
GAAP
ope… 20.5 % 22.8 % 20.8 % 21.3 %
mar…
(4)
Non…
ope… 34.1 % 34.3 % 34.5 % 33.3 %
mar…
(4)
Non…
net
inc…
GAAP
net $ 3,526 $ 1,8… $ 5,6… $ 3,428
inc…
Plu…
Amo…
of
pur… 522 380 1,0… 775
int…
(1)
Sto…
com… 904 793 1,7… 1,592
exp…
(2)…
Res…
and 115 4 211 40
acq…
cos…
Inc…
tax
eff… -223 -269 -480 -541
and
adj…
Non…
net $ 4,844 $ 2,7… $ 8,2… $ 5,294
inc…
Non-GA…
diluted Three Six
net Months Months
income Ended Ended
per July 31, July 31,
share 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
diluted
net $ 4.29 $ 1.96 $ 6.67 $ 3.55
income
per
share
Plus:
Amorti…
of
purcha… 0.64 0.40 1.28 0.80
intang…
(1)
Stock-…
compen… 1.10 0.82 2.10 1.65
expense
(2)(3)
Restru…
and 0.14 0.00 0.25 0.04
acquis…
costs
Income
tax
effects -0.27 -0.27 -0.57 -0.56
and
adjust…
Non-GA…
diluted
net $ 5.90 $ 2.91 $ 9.73 $ 5.48
income
per
share
Shares
used in
comput…
non-GA…
diluted 821 962 845 966
net
income
per
share
(1) Amortization of purchased intangibles was as follows:
Three
Months Six Months
Ended July Ended July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cost of $ 234 $ 150 $ 478 $ 312
revenues
Sales and 288 230 605 463
marketing
$ 522 $ 380 $ 1,083 $ 775
(2) Stock-based compensation expense, excluding stock-based compensation expense
related to restructuring, was as follows:
Three Six
Months Months
Ended July Ended
2026 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cost of $ 147 $ 126 $ 285 $ 277
revenues
Research
and 301 280 611 555
developm…
Sales and 345 293 665 578
marketing
General
and 111 94 213 182
administ…
$ 904 $ 793 $ 1,774 $ 1,592
(3) Stock-based compensation expense included in the GAAP to non-GAAP
reconciliation tables above excludes stock-based compensation expense related to
restructuring initiatives for each of the three months ended July 31, 2026 and
2025 of $2 million and $0 million, respectively, and for the six months ended
July 31, 2026 and 2025 of $12 million and $15 million, respectively, which are
included in the restructuring and acquisition-related costs line.
(4) GAAP operating margin is the proportion of GAAP income from operations as a
percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-
GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income
from operations excludes the impact of the amortization of purchased
intangibles, stock-based compensation expense, charges associated with the
Company's restructuring initiatives and acquisition-related costs.
Salesforce, Inc.
Computation of Basic and Diluted GAAP and Non-GAAP Net Income Per Share
(in millions, except per share data)
(Unaudited)
GAAP
Basic Three Six
Net Months Months
Income Ended Ended
Per July 31, July 31,
Share 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 3,526 $ 1,887 $ 5,633 $ 3,428
income
Basic
net
income $ 4.30 $ 1.97 $ 6.67 $ 3.58
per
share
Shares
used in
comput…
basic 820 956 844 958
net
income
per
share
Three Six
Months Months
Ended Ended
July 31, July 31,
2026 2025 2026 2025
Non-GA…
Basic
Net
Income
Per
Share
Non-GA…
net $ 4,844 $ 2,795 $ 8,221 $ 5,294
income
Non-GA…
basic
net $ 5.91 $ 2.92 $ 9.74 $ 5.53
income
per
share
Shares
used in
comput…
non-GA…
basic 820 956 844 958
net
income
per
share
Three Six
Months Months
Ended Ended
July 31, July 31,
2026 2025 2026 2025
GAAP
Diluted
Net
Income
Per
Share
Net $ 3,526 $ 1,887 $ 5,633 $ 3,428
income
Diluted
net
income $ 4.29 $ 1.96 $ 6.67 $ 3.55
per
share
Shares
used in
comput…
diluted 821 962 845 966
net
income
per
share
Three Six
Months Months
Ended Ended
July 31, July 31,
2026 2025 2026 2025
Non-GA…
Diluted
Net
Income
Per
Share
Non-GA…
net $ 4,844 $ 2,795 $ 8,221 $ 5,294
income
Non-GA…
diluted
net $ 5.90 $ 2.91 $ 9.73 $ 5.48
income
per
share
Shares
used in
comput…
non-GA…
diluted 821 962 845 966
net
income
per
share
Supplemental Cash Flow Information
Computation of Free Cash Flow, a Non-GAAP Measure
(in millions)
(Unaudited)
Three Six
Months Months
Ended July Ended
2026 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP net
cash
provided $ 1,269 $ 740 $ 7,970 $ 7,216
by
operati…
activit…
Capital -171 -135 -316 -314
expendi…
Free
cash $ 1,098 $ 605 $ 7,654 $ 6,902
flow
Non-GAAP Financial Measures: This press release includes information about non-
GAAP operating margin, non-GAAP net income per share, non-GAAP tax rates, free
cash flow, constant currency revenue and revenue growth rate, constant currency
subscription and support revenue growth rate and constant currency current
remaining performance obligation growth rates (collectively the “non-GAAP
financial measures”). These non-GAAP financial measures are measurements of
financial performance that are not prepared in accordance with U.S. generally
accepted accounting principles and computational methods may differ from those
used by other companies. Non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP measures and
should be read only in conjunction with the Company’s condensed consolidated
financial statements prepared in accordance with GAAP. Management uses both GAAP
and non-GAAP financial measures when planning, monitoring and evaluating the
Company’s performance.
The primary purpose of using non-GAAP financial measures is to provide
supplemental information that may prove useful to investors and to enable
investors to evaluate the Company’s results in the same way management does.
Management believes that supplementing GAAP disclosure with non-GAAP disclosure
provides investors with a more complete view of the Company’s operational
performance and allows for meaningful period-to-period comparisons and analysis
of trends in the Company’s business. Further to the extent that other companies
use similar methods in calculating non-GAAP financial measures, the provision of
supplemental non-GAAP information can allow for a comparison of the Company’s
relative performance against other companies that also report non-GAAP operating
results.
Non-GAAP operating margin is the proportion of non-GAAP income from operations
as a percentage of GAAP revenue. Non-GAAP income from operations excludes the
impact of the following items: stock-based compensation expense, amortization of
acquisition-related intangibles, and charges associated with the Company's
restructuring initiatives and acquisition-related costs. Non-GAAP net income per
share excludes, to the extent applicable, the impact of the following items:
stock-based compensation expense, amortization of purchased intangibles, charges
associated with the Company's restructuring initiatives and acquisition-related
costs, and income tax adjustments. These items are excluded because the
decisions that give rise to them are not made to increase revenue in a
particular period, but instead for the Company’s long-term benefit over multiple
periods.
As described above, the Company excludes or adjusts for the following in its
non-GAAP results and guidance:
• Stock-Based Compensation Expense: The Company’s compensation strategy includes
the use of stock-based compensation expense to attract and retain employees and
executives. It is principally aimed at aligning their interests with those of
our stockholders and at long-term employee retention, rather than to motivate or
reward operational performance for any particular period. Thus, stock-based
compensation expense varies for reasons that are generally unrelated to
operational decisions and performance in any particular period.
• Amortization of Purchased Intangibles: The Company views amortization of
acquisition-related intangible assets, such as the amortization of the cost
associated with an acquired company’s research and development efforts, trade
names, customer lists and customer relationships, and, in some cases, acquired
lease intangibles, as items arising from pre-acquisition activities determined
at the time of an acquisition. While these intangible assets are continually
evaluated for impairment, amortization of the cost of purchased intangibles is a
static expense, which is not typically affected by operations during any
particular period. Although the Company excludes the amortization of purchased
intangibles from these non-GAAP financial measures, management believes that it
is important for investors to understand that such intangible assets were
recorded as part of purchase accounting and contribute to revenue generation.
• Restructuring: Restructuring charges are costs associated with a formal
restructuring plan and may include employee notice period costs and severance
payments, lease or contract termination costs, asset impairments, accelerated
depreciation and amortization and other related expenses. The Company excludes
these restructuring charges because they are distinct from ongoing operational
costs and it does not believe they are reflective of current and expected future
business performance and operating results.
• Acquisition-related costs: Acquisition-related expenses include transaction
and integration expenses for consummated transactions that are incurred prior to
the acquisition closing or within the first year of the acquisition close date,
which may include transaction or integration expenses paid to third parties,
one-time severance and retention bonuses for acquired and transitional
employees, or exit costs associated with an acquired company’s long-lived
assets, such as real estate, or other long-term commercial agreements. The
Company excludes these acquisition-related expenses because they are distinct
from ongoing operational costs and the Company does not believe they are
reflective of current and expected future business performance and operating
results.
• Gains (Losses) on Strategic Investments, net: The Company records all fair
value adjustments to its equity securities held within the strategic investment
portfolio through the statement of operations. As it is not possible to forecast
future gains and losses, the Company assumes no change to the value of its
strategic investment portfolio in its GAAP and non-GAAP estimates for future
periods, including its guidance. Gains (Losses) on Strategic Investments, net,
are included in its GAAP financial statements.
• Income Tax Effects and Adjustments: The Company utilizes a fixed long-term
projected non-GAAP tax rate in order to provide better consistency across the
interim reporting periods by eliminating the effects of items such as changes in
the tax valuation allowance and tax effects of acquisition-related costs, since
each of these can vary in size and frequency. When projecting this long-term
rate, the Company evaluated a three-year financial projection that excludes the
direct impact of the following non-cash items: stock-based compensation expenses
and the amortization of purchased intangibles. The projected rate also considers
factors including the Company’s expected tax structure, its tax positions in
various jurisdictions and key legislation in major jurisdictions where the
Company operates. For fiscal 2026, the Company used a projected non-GAAP tax
rate of 22.0%. For fiscal 2027, the Company uses a projected non-GAAP tax rate
of 20.5%, which reflects currently available information, as well as other
factors and assumptions. The non-GAAP tax rate could be subject to change for a
variety of reasons, including the rapidly evolving global tax environment,
significant changes in the Company’s geographic earnings mix due to acquisition
activity or other changes to the Company’s strategy or business operations. The
Company will re-evaluate its long-term rate as appropriate.
The Company presents constant currency information to provide a framework for
assessing how the Company's underlying business performed excluding the effect
of foreign currency rate fluctuations and the impact of hedging gains (losses).
To present constant currency revenue growth rates, current and comparative prior
period results for entities reporting in currencies other than United States
dollars are converted into United States dollars at the weighted average
exchange rate for the quarter being compared to rather than the actual exchange
rates in effect during that period. To present current remaining performance
obligation growth rates on a constant currency basis, current remaining
performance obligation balances in local currencies in previous comparable
periods are converted using the United States dollar currency exchange rate as
of the most recent balance sheet date.
The Company defines the non-GAAP measure free cash flow as GAAP net cash
provided by operating activities, less capital expenditures. Trailing twelve
months free cash flow is calculated as GAAP net cash provided by operating
activities for the aggregate four preceding fiscal quarters, less capital
expenditures over that same period.
Other Metrics
: The Company defines Agentforce and Data 360 annual recurring revenue ("ARR")
as the annualized recurring value of active Data 360 and certain generative
artificial intelligence ("AI") subscription agreements, including those for
Agentforce, generative AI products and features, and Headless 360, that were
executed at the end of the reporting period. The Company defines Informatica
Cloud ARR as the annualized recurring value of active Informatica Cloud
subscription agreements that were executed at the end of the reporting period.
From time to time, we may update this metric to incorporate new products,
feature offerings, or acquired technologies that meet its definition. Beginning
in Q2 FY27, Agentforce ARR includes our AI offerings Slackbot and Headless 360.
The Company defines Net New Annual Order Value ("NNAOV") as the net change in
the annual order value of our customer subscription agreements during a given
period. NNAOV is calculated as the sum of: (i) the annualized contract value
from new and existing customers who enter into subscription agreements during
the period; less (ii) the reduction in annualized order value from customer
cancellations, non-renewals, or downgrades during the period.
The Company defines an Agentic Work Unit ("AWU") as a measure of discrete tasks
executed by AI agents in production across the Salesforce platform, including
Agentforce and Slack. AWUs represent the conversion of generative AI
capabilities into measurable business outputs, such as resolving customer cases,
updating records or triggering automated workflows.