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Salesforce (CRM) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed May 29, 2025
Salesforce (CRM) reported revenue of $9.8B for the first quarter fiscal 2026 (Q1 FY26), +8% from a year earlier and -2% from the quarter before. Operating margin was 19.8%, net earnings $1.5B (15.7% of revenue).
Salesforce, Q1 FY26: revenue $9.8B (+8% year over year), operating margin 19.8%, net earnings $1.5B, operating cash flow $6.5B. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $9.8B | -2% | +8% |
| Gross profit | $7.6B | -3% | +9% |
| Operating profit | $1.9B | +7% | +14% |
| Net earnings | $1.5B | -10% | +0.5% |
| Operating cash flow | $6.5B | +63% | +4% |
| Free cash flow | $6.3B | +65% | +4% |
What changed
Revenue was $9.8B in Q1 FY26, up 8% year over year and down 2% from the previous quarter. Service was the largest line at 24% of revenue. Platform and Other added $0.24B year over year (up 14%), 35% of the total change. Professional services and other declined 3%.
Gross margin was 77.0%, up 0.6 points from a year earlier. Operating profit was $1.9B, a 19.8% margin (up 1.0 points year over year). Of the extra revenue versus a year earlier, 33% reached operating profit, above the 19% margin then. Operating expenses grew 7% against revenue growth of 8%. Net earnings were $1.5B, up 1% year over year. The effective tax rate was 21.9%.
Operating cash flow was $6.5B (up 4% year over year), 420% of net earnings. Non-cash charges added back $0.84B of depreciation and amortization and $0.81B of share-based compensation. Working capital and other items added $3.3B. Capital expenditures of $0.18B left free cash flow of $6.3B.
Questions
What was Salesforce's revenue in the first quarter fiscal 2026?
Salesforce (CRM) reported revenue of $9.8B for the first quarter fiscal 2026 (Q1 FY26), +8% from a year earlier and -2% from the quarter before.
Was Salesforce profitable in the first quarter fiscal 2026?
Operating profit was $1.9B (19.8% of revenue) and net earnings $1.5B.
Source: Salesforce 10-Q on SEC EDGAR.