Thu, May 29, 10:04 AM (20 days ago)
### Salesforce, Inc. (CRM) Q1 2026 Financial Summary **Revenue and Profit Margins:** - **Revenue:** $9.8 billion, an 8% year-over-year increase. - **Income from Operations:** $1.9 billion, up from $1.7 billion. - **Operating Margin:** Approximately 20%, up from 19%. - **Net Income per Share:** Diluted net income per share was $1.59, up from $1.56. **Cash Flow:** - **Cash Provided by Operations:** $6.5 billion, a 4% increase. - **Total Cash, Cash Equivalents, and Marketable Securities:** $17.4 billion. **Remaining Performance Obligation:** - **Total:** $60.9 billion, a 13% increase. - **Current:** $29.6 billion, a 12% increase. **Share Repurchase and Dividends:** - **Share Repurchase:** Approximately 10 million shares repurchased for $2.7 billion. - **Dividends:** Approximately $402 million paid. **Financial Health and Performance Metrics:** - **Cash and Cash Equivalents:** $10.9 billion. - **Marketable Securities:** $6.5 billion. - **Accounts Receivable:** $4.4 billion. - **Unearned Revenue:** $17.8 billion. - **Total Assets:** $98.6 billion. - **Total Liabilities:** $37.9 billion. - **Stockholders’ Equity:** $60.7 billion. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by new business, including new customers and additional subscriptions. - **Cost of Revenues:** Increased due to employee-related costs and service delivery expenses. - **Operating Expenses:** Research and development, sales and marketing, and general and administrative expenses increased. - **Other Income and Expenses:** Losses on strategic investments due to impairments and public securities losses. - **Provision for Income Taxes:** $433 million, with an effective tax rate of 22%. **Trends and Uncertainties:** - **Economic Policies and Trade:** Unpredictability could lead to slower growth. - **Foreign Currency Fluctuations:** Minimally impacted total revenues but positively affected current remaining performance obligation growth. - **Seasonality:** Fourth quarter is historically the strongest for new business and renewals. **Future Operations Impact:** - **Acquisitions:** Potential acquisition of Informatica Inc., an AI-powered enterprise cloud data management platform, for approximately $8 billion. - **Debt and Cash:** Transaction expected to be funded with new debt and cash on the balance sheet. - **Share Repurchase:** $7.9 billion remaining for share repurchases. - **Dividends:** Continued dividend payments as declared by the Board. **Legal Proceedings and Risks:** - **Slack Litigation:** Ongoing legal proceedings with potential impacts on financial results. - **Backpage Litigation:** Multiple legal actions related to activities of a former customer, with potential monetary damages and reputational risks. - **Risk Factors:** Operational, strategic, legal, financial, and general risks that could adversely affect the business and financial results. **Conclusion:** Salesforce, Inc. (CRM) demonstrated strong financial health and performance in Q1 2026, with significant revenue growth, improved profit margins, and robust cash flow. The company continues to invest in growth levers and strategic initiatives while managing operational efficiencies and cost optimization. However, uncertainties related to economic policies, foreign currency fluctuations, and legal proceedings pose potential risks to future operations and financial results.