<\/p>\n
Salesforce Reports Record Second Quarter Fiscal 2026 Results<\/b><\/p>\n
Exceeds Guidance Across All Metrics; Subscription & Support Revenue up 11% Y\/Y, 9% in CC<\/b><\/p>\n
SAN FRANCISCO–(BUSINESS WIRE<\/a>)– Results<\/b><\/p>\n \n\u201cWe delivered an outstanding quarter to close out the first half of the year, with strong performance across revenue, margin, cash flow, and cRPO\u2014and we remain on track for fiscal 2026 to be a record year with nearly $15 billion in operating cash flow,\u201d said Marc Benioff, Chair and CEO, Salesforce. \u201cThese results reflect the success of our customers\u2014like Pfizer, Marriott, and the U.S. Army\u2014who are transforming into agentic enterprises, where humans and AI agents work side by side to reimagine workflows, accelerate productivity, and deliver customer success.\u201d<\/p>\n \n\u201cOur second quarter results highlight our ability to drive profitable growth while helping our customers and ourselves become agentic enterprises,\u201d said Robin Washington, President and Chief Operating and Financial Officer, Salesforce. \u201cWe exceeded all our financial targets while achieving our tenth consecutive quarter of operating margin expansion, delivering strong returns and maximizing value for our customers and shareholders.\u201d<\/p>\n Business Highlights<\/b><\/p>\n Guidance<\/b><\/p>\n \nSalesforce’s guidance includes GAAP and non-GAAP financial measures. The following tables summarize Salesforce’s guidance for the third quarter fiscal 2026 and full-year fiscal 2026:<\/p>\n \n\u00a0<\/p>\n<\/td>\n Q3 FY26 Guidance<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n GAAP<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Non-GAAP<\/b>(1)<\/sup><\/p>\n<\/td>\n<\/tr>\n \nRevenue<\/p>\n<\/td>\n \n$10.24 – $10.29 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRevenue growth(2)<\/sup><\/p>\n<\/td>\n \n8% – 9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8% CC, $75M Y\/Y FX<\/p>\n<\/td>\n<\/tr>\n \nDiluted net income per share<\/p>\n<\/td>\n \n$1.60 – $1.62<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$2.84 – $2.86<\/p>\n<\/td>\n<\/tr>\n \nCurrent remaining performance obligation growth(3)<\/sup><\/p>\n<\/td>\n \nSlightly above 10%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nSlightly above 9% CC, $300M Y\/Y FX<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Full Year FY26 Guidance<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n GAAP<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Non-GAAP<\/b>(1)<\/sup><\/p>\n<\/td>\n<\/tr>\n \nRevenue<\/p>\n<\/td>\n \n$41.1 – $41.3 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRevenue growth(2)<\/sup><\/p>\n<\/td>\n \n8.5% – 9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nApproximately 8% CC, $300M Y\/Y FX<\/p>\n<\/td>\n<\/tr>\n \nSubscription & support revenue growth(4)<\/sup><\/p>\n<\/td>\n \nApproximately 9.5%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nApproximately 9% CC<\/p>\n<\/td>\n<\/tr>\n \nOperating margin<\/p>\n<\/td>\n \n21.2%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n34.1%<\/p>\n<\/td>\n<\/tr>\n \nDiluted net income per share<\/p>\n<\/td>\n \n$6.99 – $7.03<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$11.33 – $11.37<\/p>\n<\/td>\n<\/tr>\n \nOperating cash flow growth<\/p>\n<\/td>\n \nApproximately 12% – 13%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nFree cash flow growth<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nApproximately 12% – 13%<\/p>\n<\/td>\n<\/tr>\n (1) <\/sup>Non-GAAP CC revenue growth, non-GAAP CC remaining performance obligation growth, non-GAAP CC subscription & 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 excludes any impact to share count from potential Q3 – Q4 FY26 repurchase activity under our share repurchase program.<\/p>\n<\/td>\n<\/tr>\n (2) <\/sup>Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates.<\/p>\n<\/td>\n<\/tr>\n (3) <\/sup>Current remaining performance obligation FX impact is calculated by taking the current period rates compared to the prior period ending rates.<\/p>\n<\/td>\n<\/tr>\n (4)<\/sup> Subscription & support revenue excludes professional services revenue.<\/p>\n<\/td>\n<\/tr>\n \nThe following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year:<\/p>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Full Year FY26 \nGAAP operating margin(1)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n21.2%<\/p>\n<\/td>\n<\/tr>\n \nPlus<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAmortization of purchased intangibles(2)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.7%<\/p>\n<\/td>\n<\/tr>\n \nStock-based compensation expense(2)(3)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8.4%<\/p>\n<\/td>\n<\/tr>\n \nRestructuring(2)(3)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.8%<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP operating margin(1)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n34.1%<\/p>\n<\/td>\n<\/tr>\n (1)<\/sup> 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.<\/p>\n<\/td>\n<\/tr>\n (2)<\/sup> The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY26.<\/p>\n<\/td>\n<\/tr>\n (3) <\/sup>The percentages shown in the restructuring line have been calculated based on charges associated with the Company’s restructuring initiatives. Stock-based compensation expense excludes stock-based compensation expense related to the Company’s restructuring initiatives, which is included in the restructuring line.<\/p>\n<\/td>\n<\/tr>\n \nThe 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:<\/p>\n \n\u00a0<\/p>\n<\/td>\n Fiscal 2026<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Q3<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n FY26<\/b><\/p>\n<\/td>\n<\/tr>\n \nGAAP diluted net income per share range(1)(2)<\/sup><\/p>\n<\/td>\n \n$1.60 – $1.62<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$6.99 – $7.03<\/p>\n<\/td>\n \nPlus<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nAmortization of purchased intangibles<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.40<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1.60<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nStock-based compensation expense<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.88<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n3.57<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRestructuring(3)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.30<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.34<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nLess<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nIncome tax effects and adjustments(4)<\/sup><\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(0.34<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(1.17<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP diluted net income per share(2)<\/sup><\/p>\n<\/td>\n \n$2.84 – $2.86<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$11.33 – $11.37<\/p>\n<\/td>\n \nShares used in computing basic net income per share (millions)(5)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n956<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n958<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nShares used in computing diluted net income per share (millions)(5)<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n962<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n966<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n (1) <\/sup>The Company’s GAAP tax provision is expected to be approximately 23.0% for the three months ended October 31, 2025 and 22.5% for the year ended January 31, 2026. The GAAP tax rates may fluctuate due to discrete tax items, changes in valuation allowance assessment, future acquisitions, or other transactions.<\/p>\n<\/td>\n<\/tr>\n (2) <\/sup>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\u2019s strategic investment portfolio could be material.<\/p>\n<\/td>\n<\/tr>\n (3) <\/sup>The estimated impact to GAAP diluted net income per share is in connection with the Company’s restructuring initiatives.<\/p>\n<\/td>\n<\/tr>\n (4) <\/sup>The Company\u2019s non-GAAP tax provision uses a long-term projected tax rate of 22.0%, which reflects currently available information and could be subject to change.<\/p>\n<\/td>\n<\/tr>\n (5) <\/sup>The Company’s shares used in computing GAAP net income per share guidance and non-GAAP net income per share guidance excludes any impact to share count from potential Q3 – Q4 FY26 repurchase activity under our share repurchase program.<\/p>\n<\/td>\n<\/tr>\n \nFor additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.<\/p>\n \nManagement will provide further commentary around these guidance assumptions on its earnings call.<\/p>\n Product Releases and Enhancements<\/b><\/p>\n \nSalesforce 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.<\/p>\n \nSalesforce leaders will participate in a Q2 FY26 Product and Innovation Overview webinar on Friday, September 5, 2025, at 10:00 AM PT \/ 1:00 PM ET. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com\/investor<\/a>.<\/p>\n \nTo learn more about our newest innovations and product release highlights, including our latest Summer 2025 Product Release, see FY26 Q2 Product Releases and Announcements at https:\/\/www.salesforce.com\/news\/stories\/fy26-q2-highlights\/<\/a> and see our latest major release at www.salesforce.com\/releases<\/a>.<\/p>\n Environmental, Social, and Governance (ESG) Strategy<\/b><\/p>\n \nTo learn more about our latest initiatives and priorities, review our Stakeholder Impact Report at https:\/\/salesforce.com\/stakeholder-impact-report<\/a>.<\/p>\n Quarterly Conference Call<\/b><\/p>\n \nSalesforce plans to host a conference call 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<\/a>.<\/p>\n About Salesforce<\/b><\/p>\n
\nSalesforce (NYSE: CRM), the world’s #1 AI CRM, today announced results for its second quarter fiscal 2026 ended July 31, 2025.<\/p>\n\n
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