10-Q · May 27, 2026
Salesforce, Inc. reported strong Q1 FY27 results, with revenue reaching $11.1 billion, a 13% increase year-over-year, and a non-GAAP EPS of $3.88, exceeding analyst expectations. The company also announced raised…
Earnings analysis · 10-Q
CRM earnings analysis
Filed August 26, 2026 · Our reading of the company's report
The latest report
Salesforce delivered Q2 FY27 revenue of $11.345 billion and GAAP diluted EPS of $4.29, exceeding consensus estimates of $11.317 billion and $3.09, respectively. Management raised FY27 revenue guidance to $46.1…
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Salesforce delivered Q2 FY27 revenue of $11.345 billion and GAAP diluted EPS of $4.29, exceeding consensus estimates of $11.317 billion and $3.09, respectively. Management raised FY27 revenue guidance to $46.1 billion-$46.4 billion from $45.9 billion-$46.2 billion, although the increase depends partly on pending acquisitions and includes a $100 million FX headwind. Liquidity remains strong at $11.4 billion, but the balance sheet now carries $25.0 billion of newly issued notes and a $6.0 billion floating-rate term loan, while strategic-investment and AI-related volatility remain significant risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.29
What stood out
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Revenue and EPS Beat Estimates
Q2 FY27 revenue was $11.345 billion versus the $11.317 billion consensus estimate, while GAAP diluted EPS was $4.29 versus the $3.09 estimate.
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Liquidity Increased
Cash, cash equivalents and marketable securities totaled $11.4 billion at July 31, 2026, up from $9.6 billion at January 31, 2026, providing substantial liquidity for buybacks, acquisitions and capital expenditures.
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Financing Supports Strategic Flexibility
The company issued $25.0 billion of March 2026 Notes with maturities from 2028 to 2066 and had $6.0 billion outstanding under the 2026 Term Loan Credit Agreement; the $5.0 billion revolving credit facility had no outstanding borrowings.
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Large AI Investment Portfolio
The strategic investment portfolio had a carrying value of $11.292 billion across more than 450 companies, including a $5.1 billion Anthropic investment.
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Significant Buyback Capacity
The company had $22.855 billion of remaining share-repurchase authorization at July 31, 2026, although it made no repurchases during May, June or July 2026.
What to watch
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Strategic Investment Volatility
The filing identifies a material strategic-investment volatility risk: a 10% decline in the enterprise value of the five largest privately held investments would reduce the portfolio carrying value by approximately $641 million. The portfolio included $11.292 billion of equity investments.
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Higher Leverage and Rate Exposure
Debt-related risk increased following the $25.0 billion March 2026 Notes issuance and the $6.0 billion floating-rate term loan. A 100-basis-point rate move could change the fair value of the fixed-income portfolio by $36 million, versus $31 million at January 31, 2026.
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AI, Cybersecurity and Vendor Risk
The filing expands cybersecurity and AI-related risk disclosures, including threats using autonomous AI agents and frontier AI models. Salesforce also relies on third-party AI models and cloud infrastructure, and additional AI-related computing and compliance costs could pressure margins; FY27 non-GAAP operating margin is guided to 34.3%.
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Acquisition Execution Risk
Pending acquisitions create execution and closing risk within the outlook: the $200 million increase in FY27 revenue guidance includes $200 million from pending Contentful and Fin acquisitions, while the outlook also includes a $100 million FX headwind.
Management's outlook
FY27 revenue outlook was raised to $46.1 billion-$46.4 billion from $45.9 billion-$46.2 billion. The increase reflects $100 million of organic growth and $200 million from pending Contentful and Fin acquisitions, partly offset by a $100 million foreign-exchange headwind; GAAP operating margin is guided to 20.1% and non-GAAP operating margin to 34.3%.
Earlier filings 4
10-K · March 2, 2026
Salesforce closed the Informatica acquisition in the fourth quarter of fiscal 2026 and reports multi-quarter strength: fiscal 2026 revenue totaled $41.53B (sum of quarterly results), with diluted EPS of $7.81 and free…
10-Q · May 29, 2025
Salesforce reported quarterly revenue of $9,829 million, up $696 million (+7.6%) versus $9,133 million a year ago, with gross profit of $7,564 million and income from operations of $1,942 million. Margins improved…
10-Q · December 4, 2024
Salesforce reported revenue of $9,444 million for the three months ended October 31, 2024, up from $8,720 million a year earlier, with gross profit of $7,339 million and operating income of $1,893 million. Diluted EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.