Salesforce (CRM) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 FY27 revenue of $11.13 billion, up 13% year-over-year, driven by Agentforce, Data 360, Slack, and Informatica acquisition.

• Agentforce and Data 360 ARR reached $3.4 billion, with Agentforce ARR growing over 200% year-over-year and significant expansion from existing customers.

• Slack AWUs grew 350% quarter-over-quarter, and Slack contributed to nearly half of million-dollar wins, up 80% year-over-year.

• Operating cash flow was $6.7 billion, up 3% year-over-year; free cash flow was $6.6 billion.

• Returned $27.5 billion to shareholders, including $27.1 billion in share repurchases and $365 million in dividends, with a $25 billion accelerated share repurchase program.

Financial highlights

• Q1 revenue: $11.13 billion, up 13% year-over-year; subscription & support revenue was $10.6 billion, up 14%.

• GAAP operating margin was 21.1%, up 130–250 basis points; non-GAAP operating margin was 34.8%.

• Net income for the quarter was $2.1 billion, with GAAP EPS at $2.42, up 52% year-over-year.

• Remaining performance obligation (RPO) was $67.9 billion, up 11% year-over-year; cRPO was $33.6 billion, up 14%.

• Gross margin remained steady at 77% of revenue.

Outlook and guidance

• FY27 revenue guidance raised to $45.9–$46.2 billion, up 11% year-over-year.

• Q2 FY27 revenue guidance: $11.27–$11.35 billion, up 10–11% year-over-year.

• Full-year non-GAAP operating margin guidance is 34.3%; GAAP margin updated to 20.6%.

• Operating and free cash flow growth guidance updated to 4–5% year-over-year, reflecting impact of $25B debt issuance for ASR.

• FY27 GAAP diluted EPS guidance is $7.93–$7.99; non-GAAP diluted EPS is $14.06–$14.12.