Salesforce (NYSE: CRM) posted its first‑quarter fiscal 2027 results, announcing record revenue of $11.1 billion and a 52% year‑over‑year increase in GAAP earnings per share to $2.42. The company highlighted strong growth in its Agentforce and Data 360 offerings, an accelerated $25 billion share‑repurchase program, and raised its full‑year revenue guidance.
Salesforce Q1 FY27 Financial Highlights
Salesforce reported $11.1 billion in total revenue for the quarter ended April 30, 2026, up 13% year‑over‑year (12% in constant currency). Subscription and support revenue reached $10.6 billion, a 14% year‑over‑year increase, including a $428 million contribution from Informatica. GAAP operating margin was 21.1% and non‑GAAP operating margin 34.8%. GAAP diluted EPS rose 52% to $2.42, while non‑GAAP diluted EPS grew 50% to $3.88. Operating cash flow and free cash flow increased 3% and 4% year‑over‑year, respectively, to $6.7 billion and $6.6 billion. The company returned $27.5 billion to shareholders, comprising $27.1 billion in share repurchases and $365 million in dividends.
Agentforce, Data 360 and AI‑Driven Growth
Agentforce and Data 360 annual recurring revenue (ARR) reached nearly $3.4 billion, up more than 200% year‑over‑year, with $1.1 billion attributed to Informatica Cloud ARR and $1.2 billion to Agentforce ARR (205% year‑over‑year growth). The firm delivered 3.8 billion Agentic Work Units (AWUs) in the quarter, a 111% quarter‑over‑quarter rise. Agentforce One Edition and Agentforce for Apps bookings grew almost 60% year‑over‑year, and more than half of Agentforce and Data 360 bookings came from existing customers. Data 360 ingested 52 trillion records (136% year‑over‑year), including 35 trillion via Zero Copy (277% year‑over‑year), and processed 12 TB of unstructured data. The company processed over 28.6 trillion AI tokens (152% quarter‑over‑quarter) and nearly 1 trillion API calls across core products.
Guidance and Share Repurchase Program
Salesforce set second‑quarter FY27 revenue guidance at $11.27 billion to $11.35 billion, representing 10%‑11% year‑over‑year growth (10% in constant currency). Full‑year FY27 revenue is now expected between $45.9 billion and $46.2 billion, up 11% year‑over‑year (10%‑11% in constant currency). The company maintained its subscription and support revenue growth target of just under 12% year‑over‑year. GAAP operating margin guidance for the full year was updated to 20.6%, with non‑GAAP margin guidance unchanged at 34.3%. Operating cash flow and free cash flow growth are each projected to rise 4%‑5% year‑over‑year, reflecting the impact of a $25 billion debt issuance tied to the accelerated share‑repurchase (ASR) program. The ASR includes an upfront delivery of 103 million shares, roughly 80% of the total shares expected to be repurchased, with final settlement anticipated in Q3 FY27.
Key Takeaways
- Salesforce posted record Q1 FY27 revenue of $11.1 billion, up 13% year‑over‑year, and GAAP EPS of $2.42, up 52% year‑over‑year.
- Agentforce and Data 360 ARR reached nearly $3.4 billion, a growth of more than 200% year‑over‑year, with Agentforce bookings up almost 60% year‑over‑year.
- The company raised full‑year FY27 revenue guidance to $45.9‑$46.2 billion and entered a $25 billion accelerated share‑repurchase program, delivering $27.5 billion to shareholders in the quarter.
TechInsyte's Take
Salesforce’s Q1 results underscore the rapid scaling of its AI‑centric Agentforce and Data 360 platforms, which are now a sizable portion of its ARR. While the guidance lift and sizable share‑repurchase program signal confidence in cash generation, the reliance on a $25 billion debt issuance introduces financing risk that executives should monitor. Buyers should watch the upcoming Q2 earnings call for clarification on the impact of the ASR settlement and any shifts in AI‑driven subscription growth.
Source: Businesswire
