Summary
Salesforce closed FY2026 Q2 with revenue of $10.24 billion, up 9.8% from the prior-year quarter. Gross profit was $7.99 billion, up 11.6%. Operating income was $2.33 billion, up 30.8%. Net income was $1.89 billion, up 32.1%. Diluted EPS was $1.96, up 33.3%. Gross margin was 78.1%, up 1.2 percentage points. Operating margin was 22.8%, up 3.7 percentage points. For the first six months of FY2026, revenue was $20.06 billion, up 8.7% from the prior-year period. These figures show margin expansion alongside top-line growth.
Cash generation was mixed. Operating cash flow for the quarter was $740 million, down 17.0% from the prior-year quarter. Year-to-date operating cash flow was $7.22 billion, up 1.1%. Capital expenditures were $135 million in the quarter, down 1.5%, and $314 million year to date, up 4.7%. Deferred revenue, current portion, was $16.56 billion, up 8.8% from the prior-year quarter. Total remaining performance obligations were $59.90 billion, up 12.0%. Current remaining performance obligation was $29.4 billion, up 11% year over year and 10% in constant currency. The company returned $2.6 billion to shareholders in the quarter, including $2.2 billion in share repurchases and $399 million in dividends. It also announced a $20 billion increase to its share repurchase program, bringing total authorization to $50 billion.
Operational momentum centered on AI and data. Data Cloud and AI annual recurring revenue was over $1.2 billion, up 120% year over year. Salesforce has closed over 12,500 Agentforce deals since launch, of which over 6,000 are paid. More than 40% of Data Cloud and Agentforce Q2 bookings came from existing customer expansion. The company closed over 60 deals greater than $1 million that include both Data Cloud and AI. Service and Platform were in all Q2 Top 10 Deals. On help.salesforce.com, Agentforce handled over 1.4 million requests. Management also pointed to customers such as Pfizer, Marriott, and the U.S. Army as examples of agentic enterprise adoption. The attrition rate, excluding Slack self-service, was approximately eight percent as of July 31, 2025.
Guidance points to continued growth but at a slower pace than the reported quarter. For Q3 FY2026, Salesforce initiated revenue guidance of $10.24 billion to $10.29 billion, up 8% to 9% year over year and 8% in constant currency. Q3 non-GAAP diluted EPS guidance is $2.84 to $2.86. For full-year FY2026, the company raised the low end of revenue guidance to $41.1 billion to $41.3 billion, up 8.5% to 9% year over year and approximately 8% in constant currency. Full-year operating margin guidance is 21.2% on a GAAP basis and 34.1% on a non-GAAP basis. Full-year operating cash flow growth guidance is approximately 12% to 13% year over year. Full-year non-GAAP diluted EPS guidance is $11.33 to $11.37. Subscription support revenue growth for the full year is expected to be approximately 9.5%.
Risks remain. The pending Informatica acquisition is estimated at $8.0 billion net of Salesforce's current investment, and it is expected to close in Q4 FY2026 or early FY2027, subject to regulatory approvals and other closing conditions. The company also agreed to acquire Regrello for approximately $900 million in cash, expected to close in Q3 FY2026. Salesforce committed up to $750 million for a strategic investment in Genesys. Management flagged uncertainties around AI technologies and their integration into product offerings, foreign currency fluctuations, competition, and macroeconomic volatility. The business is seasonal, with the fourth quarter historically the strongest for new business and renewals. Restructuring initiatives are expected to result in approximately $30 million to $50 million in future cash payments, primarily for severance. These items, along with customer attrition and the need to secure data center capacity, are key risks to monitor.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $10.24B | $9.83B | +4.1% | $9.32B | +9.8% |
| Gross profit | $7.99B | $7.56B | +5.7% | $7.17B | +11.6% |
| Gross margin | 78.1% | 77.0% | +1.1 pp | 76.8% | +1.3 pp |
| Research & development | $1.48B | $1.46B | +1.4% | $1.35B | +9.8% |
| Sales & marketing | $3.44B | $3.43B | +0.4% | $3.22B | +6.8% |
| General & administrative | $734.0M | $697.0M | +5.3% | $711.0M | +3.2% |
| Total operating expenses | $5.66B | $5.62B | +0.7% | $5.38B | +5.2% |
| Operating income (loss) | $2.33B | $1.94B | +20.1% | $1.78B | +30.8% |
| Operating margin | 22.8% | 19.8% | +3.0 pp | 19.1% | +3.7 pp |
| Net income (loss) | $1.89B | $1.54B | +22.5% | $1.43B | +32.1% |
| Net margin | 18.4% | 15.7% | +2.8 pp | 15.3% | +3.1 pp |
| Diluted EPS | $1.96 | $1.59 | +$0.37 | $1.47 | +$0.49 |
Risks
Agentforce and Data Cloud operate in intensely competitive AI markets and use a consumption-based model with limited pricing experience. Lower customer consumption or suboptimal pricing could curb expansion and revenue growth.
The pending Informatica acquisition for an estimated $8.0 billion, plus the recently announced Regrello acquisition for approximately $900 million, brings integration, customer retention, regulatory antitrust and financing risks. The Informatica deal is expected to close in the fourth quarter of fiscal 2026 or early fiscal 2027 and depends on regulatory approvals.
Customers have no renewal obligation after typical 12 to 36 month terms, and some may renew for fewer subscriptions, shorter terms or lower-cost offerings. The company cites an attrition rate of approximately eight percent as of July 31, 2025 and uncertainty around consumption-based offerings.
Volatile and weakened global economic conditions, tariffs or trade restrictions, retaliatory actions and geopolitical conflicts such as the war in Ukraine and the regional conflict in the Middle East could delay customer purchasing, reduce IT spending and change subscription contract values or durations.
Threat actors are using AI to create more automated, targeted and coordinated attacks, and the company has experienced malicious cyberattacks in the normal course. A material breach could lead to mandatory 8-K disclosure, reputational harm, customer loss and legal exposure.
Greater focus on larger enterprise and government customers may increase sales costs, lengthen sales cycles, create pricing pressure and delay revenue recognition for complex transactions. Larger customers also demand more configuration and integration services.
Competition for engineers with AI experience, sales executives and data scientists remains significant, and restructuring or workforce reductions may hurt ability to attract and retain key employees. Loss of the CEO or other key personnel could seriously harm the business.
Evolving privacy, AI, cross-border data transfer and industry-specific rules, including the EU AI Act, DSA and data localization requirements, may restrict service delivery and increase compliance costs. Antitrust scrutiny may also block, delay or impose conditions on acquisitions such as Informatica.
Global tax developments, including the OBBBA and Corporate Alternative Minimum Tax, Pillar Two and ongoing negotiations, could increase tax liabilities and affect cash flows. The year-to-date effective tax rate increased to 22 percent for the six months ended July 31, 2025 from 20 percent a year ago.
In the second quarter of fiscal 2026, the company implemented a new ERP system that is essential to financial planning, reporting and compliance. Unforeseen problems with the new ERP or migration from prior systems could harm the ability to manage the business.
The company has substantial outstanding debt, including $8.4 billion carrying value of senior notes as of July 31, 2025, plus lease and contractual commitments and credit agreements tied to the Informatica acquisition. Covenants, refinancing risk and rating downgrades could adversely affect financial condition and cash flows.
The strategic investment portfolio carries risk of partial or complete loss and fair value volatility. For the six months ended July 31, 2025, losses on strategic investments, net were $57 million, driven by impairments on privately held investments.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Billings and other
Current Remaining Performance Obligation
Attrition Rate
Total Remaining Performance Obligation
Summary, forecast, risks and KPIs are extracted from Salesforce, Inc.'s SEC filings for Q2 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.