Executive Summary

Q1 FY26 revenue was $9.83B, up 8% Y/Y in nominal and constant currency; non-GAAP EPS was $2.58 and GAAP EPS was $1.59. cRPO rose 12% Y/Y (11% CC), and operating cash flow reached $6.48B .
Salesforce raised FY26 revenue guidance by $400M to $41.0–$41.3B and reiterated FY26 non-GAAP operating margin at 34%; Q2 FY26 revenue guidance is $10.11–$10.16B with non-GAAP EPS of $2.76–$2.78 .
Results exceeded consensus on revenue and EPS for Q1; consensus for Q2 is broadly in-line with guidance (see Estimates Context) . Values retrieved from S&P Global.
Strategic catalysts: accelerating Agentforce/Data Cloud momentum (ARR >$1B, >120% Y/Y), FX tailwind ($250M for FY26), and the non-dilutive, accretive (by year two post-close) Informatica acquisition to strengthen the data/MDM/ETL layer of the ADAM stack (agents, data, apps, metadata) .

What Went Well and What Went Wrong

What Went Well

Broad-based top-line strength: revenue up 8% Y/Y; Subscription & Support revenue up 8% Y/Y (9% CC); cRPO up 12% Y/Y (11% CC) indicating durable demand and strong renewals .
AI flywheel: Data Cloud and AI ARR surpassed $1B (>120% Y/Y); 60% of top 100 Q1 deals included Data Cloud and AI; Data Cloud ingested 22T records (+175% Y/Y); Agentforce handled 750k requests on help.salesforce.com, reducing case volume by 7% Y/Y .
Guidance raised on FX tailwinds and execution: FY26 revenue guide lifted to $41.0–$41.3B; maintained FY26 non-GAAP operating margin (34%); Q2 revenue guide set at $10.11–$10.16B . “We delivered strong Q1 results and are raising our guidance by $400 million…” — Marc Benioff .

What Went Wrong

Product mix headwinds: weakness in Marketing & Commerce and “slower growth in our expiration base” baked into FY26 outlook despite AI momentum .
Geographic pockets: some EMEA pockets remain constrained, despite strength in the UK, France, Canada and South Asia .
Professional services remains a headwind to total revenue growth trajectory (carried from the prior outlook), and CRPO continues to reflect cumulative impacts from measured sales performance starting in FY23 .

Financial Results

Summary vs prior periods

Metric	Q3 FY25	Q4 FY25	Q1 FY26
Revenue ($USD Billions)	$9.44	$9.99	$9.83
GAAP Diluted EPS ($)	$1.58	$1.75	$1.59
Non-GAAP Diluted EPS ($)	$2.41	$2.78	$2.58
GAAP Operating Margin (%)	20.0%	18.2%	19.8%
Non-GAAP Operating Margin (%)	33.1%	33.1%	32.3%
Gross Margin (%)	78%	78%	77%
Operating Cash Flow ($USD Billions)	$1.98	$3.97	$6.48
Free Cash Flow ($USD Billions)	$1.78	$3.82	$6.30
cRPO ($USD Billions)	$26.4	$30.2	$29.6
RPO Total ($USD Billions)	n/a	$63.4	$60.9

Q1 FY26 actual vs Wall Street consensus (S&P Global)

Metric	Q1 FY26 Consensus	Q1 FY26 Actual
Revenue ($USD Billions)	$9.75*	$9.83
Non-GAAP EPS ($)	$2.55*	$2.58

Values retrieved from S&P Global.

Segment breakdown (Subscription & Support revenue)

Segment ($USD Billions)	Q3 FY25	Q4 FY25	Q1 FY26
Sales	$2.12	$2.13	$2.13
Service	$2.29	$2.33	$2.33
Platform & Other	$1.83	$1.92	$1.96
Marketing & Commerce	$1.33	$1.36	$1.33
Integration & Analytics	$1.31	$1.72	$1.54
Total S&S	$8.88	$9.45	$9.30

KPIs and other metrics

KPI	Q3 FY25	Q4 FY25	Q1 FY26
Data Cloud & AI ARR ($USD Billions)	n/a	$0.90	>$1.00
Data Cloud Records Ingested (Trillions)	n/a	50	22 (Q1 alone)
Agentforce Operational Metrics	n/a	380k conv., 84% resolution	750k requests, –7% case vol
Cash Returned ($USD Billions)	$1.60	$9.30 FY total	$3.10 (incl. $0.40 dividends)
Revenue Attrition	n/a	Slightly above 8%	Slightly above 8%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($B)	FY26	$40.5–$40.9	$41.0–$41.3	Raised
Subscription & Support Growth	FY26	~8.5% Y/Y; ~9% CC	~9.5% Y/Y; ~9% CC	Raised (GAAP Y/Y)
GAAP Operating Margin	FY26	21.6%	21.6%	Maintained
Non-GAAP Operating Margin	FY26	34.0%	34.0%	Maintained
Operating Cash Flow Growth	FY26	~10–11%	~10–11%	Maintained
Revenue ($B)	Q2 FY26	n/a	$10.11–$10.16	Initiated
cRPO Growth	Q2 FY26	n/a	~10% (~9% CC)	Initiated
FX Impact	FY26	$(0.15)B Y/Y FX headwind	$0.25B FX tailwind	Improved
GAAP Tax Rate (quarter)	Q1 vs Q2	23.5% Q1 guide	22.5% Q2 guide	Lowered
Dividend per Share	Q2 FY26	n/a	$0.416 declared Jun 6 (payable Jul 10)	Continued returns

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY25, Q4 FY25)	Current Period (Q1 FY26)	Trend
AI/Agentforce adoption	Q3: Agentforce momentum and multi-cloud transactions . Q4: >3,000 paid Agentforce; Data Cloud & AI ARR $0.9B .	>4,000 paid; >8,000 deals; 800 customers in production; ARR >$1B .	Accelerating adoption and consumption focus.
Data Cloud	Q3: foundation for agents; strong partner ecosystem . Q4: 50T records; Zero Copy network .	22T records ingested in Q1; 60% of top 100 deals include Data/AI .	Rapid usage growth; deeper attach.
Product updates (Tableau, Slack)	Q4: Tableau Next preview; Slack central to digital labor .	Tableau Next on ADAM; Slack as conversational interface for agents .	Integration tightening; agentic UX.
Distribution & AE capacity	Q4: rebuilding, productivity up, ecosystem leveraging .	AE capacity +14% Y/Y, targeting +22% by year-end; SMB/mid-market strength .	Scaling go-to-market to drive growth.
Macro/Tariffs/EMEA	Q3/Q4: EMEA pockets constrained, LatAm/Japan/Canada strong .	Modestly constrained pockets; FX tailwind; cautious but confident pipeline .	Mixed regional backdrop; FX supportive.
Regulatory/Public sector	Q4: focus on trust/security .	FedRAMP High authorization for Agentforce planned next month .	Opening U.S. public sector.
R&D execution	Q4: unified platform progress .	Forward-deployed engineers; daily feature releases; consumption-centric execution .	Faster iteration, customer-zero feedback loop.

Management Commentary

“We delivered $9.83 billion in Q1 revenue… and we’re raising our fiscal year 2026 guidance by $400 million to $41.3 billion at the high end.” — Marc Benioff .
“We expect to achieve accretion on non-GAAP operating margin, non-GAAP EPS and free cash flow by year two post close [Informatica].… financed through cash and new debt, resulting in no share dilution.” — Robin Washington .
“Nearly 60% of our top 100 deals included investments in both Data Cloud and AI.… Data Cloud and AI ARR grew more than 120% Y/Y.” — Marc Benioff .
“We are reiterating our non-GAAP operating margins of 34% and GAAP of 21.6% for the year… operating cash flow growth of 10% to 11% and free cash flow growth of 9% to 10% remains unchanged.” — Robin Washington .
“We are aiming at 22% overall capacity growth [AEs]… small and medium business and mid-market are on fire.” — Miguel Milano .

Q&A Highlights

Growth acceleration and transmission from AI: Management emphasized maintaining margin/cash flow discipline while scaling distribution (1,000–2,000 more salespeople), with strongest demand in SMB/mid-market and regions like Japan; pricing/packaging simplification supports ASP expansion .
Macro/tariffs uncertainty: Portfolio balance and FX tailwinds underpin guidance; AE capacity ramp expected to support H2 performance .
Platform composition (Tableau, MuleSoft, Informatica): ADAM framework (agents, data, apps, metadata) unifies the stack; Informatica enhances data harmonization/MDM/ETL for enterprise-grade agents .
Leading indicators: Consumption telemetry (records ingested, Agentforce bookings expansion), forward-deployed engineers to accelerate time-to-value and product maturity .
Adoption constraints vs consumer AI: Enterprise data governance/security are gating factors; Informatica and Data Cloud address harmonization to scale agents safely .

Estimates Context

Q1 FY26: Salesforce beat revenue and EPS vs S&P Global consensus ($9.83B actual vs $9.75B*; $2.58 non-GAAP EPS actual vs $2.55*), reflecting stronger-than-expected execution and FX tailwind . Values retrieved from S&P Global.
Q2 FY26: Consensus revenue ~$10.14B* and non-GAAP EPS ~$2.78* are broadly in-line with company guidance ($10.11–$10.16B revenue; $2.76–$2.78 EPS), suggesting estimates already reflect FX and demand backdrop . Values retrieved from S&P Global.

Key Takeaways for Investors

AI flywheel is real: Data Cloud and Agentforce continue to post triple-digit ARR growth with rising attach rates in large deals; consumption-based monetization is a focus and should compound as deployments scale .
Guidance quality improved: FY26 revenue raised and FX tailwind flipped positive ($250M), while margins held; execution plus currency support are near-term stock catalysts .
Distribution is scaling into strength: AE capacity is ramping toward +22% by year-end, with momentum concentrated in SMB/mid-market and select geographies (Japan, Latin America, UK/France/Canada) .
Product mix watch-outs: Marketing & Commerce softness and measured EMEA pockets temper the outlook; management has embedded these headwinds in guidance .
Strategic M&A discipline: Informatica is non-dilutive, targeted to be accretive by year two, and strengthens the enterprise data layer critical for agentic AI; expect tighter data/MDM/ETL integration post-close .
Public sector opening: FedRAMP High authorization planned for Agentforce should unlock U.S. public sector demand — a potential incremental tailwind .
Capital returns remain robust: $3.1B returned in Q1 (incl. $402M dividends) and ongoing buybacks/dividends support TSR while maintaining margin/cash flow frameworks .

Notes on non-GAAP adjustments: Q1 non-GAAP EPS of $2.58 reflects add-backs of amortization ($0.41), stock-based compensation ($0.82), restructuring ($0.04), less tax effects ($0.28) .