Summary
Salesforce reported fiscal 2026 third quarter revenue of $10.26 billion, up 8.6% from the prior-year quarter. For the first nine months of fiscal 2026, revenue was $30.32 billion, up 8.7%. Third quarter gross profit was $8.00 billion, up 9.1%, and year-to-date gross profit was $23.56 billion, up 9.7%. Operating income was $2.19 billion in the quarter, up 15.6%, and $6.46 billion year to date, up 20.0%. Net income was $2.09 billion in the quarter, up 36.6%, and $5.51 billion year to date, up 22.8%. Diluted earnings per share were $2.19 in the quarter, up 38.6%, and $5.73 year to date, up 24.6%. Gross margin was 78.0% in the quarter, up 0.3 percentage points. GAAP operating margin was 21.3% in the quarter. Operating cash flow was $2.32 billion in the quarter, up 16.8%, and $9.53 billion year to date, up 4.5%. Capital expenditures were $139 million in the quarter, down 31.9%. Deferred revenue was $15.00 billion, up 11.3%. Total remaining performance obligation was $59.5 billion, up 12.1%.
Non-GAAP operating margin was 35.5%. Free cash flow, a non-GAAP measure, was $2.2 billion, up 22%. Current remaining performance obligation was $29.4 billion, up 11% year over year and in constant currency. Agentforce and Data 360 annual recurring revenue reached nearly $1.4 billion, up 114% year over year. Agentforce ARR surpassed half a billion dollars, up 330% year over year. Salesforce has closed over 18,500 Agentforce deals since launch, including more than 9,500 paid deals, up 50% quarter over quarter. Agentforce processed more than 3.2 trillion tokens through its LLM gateway. Data 360 ingested 32 trillion records in the quarter, up 119% year over year, including 15 trillion through Zero Copy, up 341%. About 50% of Agentforce and Data 360 third quarter bookings came from existing customer expansion. The company completed the Informatica acquisition in November 2025 for approximately $9.6 billion and acquired Regrello in October 2025.
Management raised full-year fiscal 2026 revenue guidance to $41.45 billion to $41.55 billion, up 9% to 10% year over year and approximately 9% in constant currency, including approximately 80 basis points of Informatica contribution. The company updated full-year GAAP operating margin guidance to 20.3% and maintained non-GAAP operating margin guidance at 34.1%. Full-year GAAP diluted earnings per share guidance is $7.22 to $7.24, and non-GAAP diluted earnings per share guidance is $11.75 to $11.77. Salesforce raised full-year operating cash flow growth guidance to approximately 13% to 14% year over year. For the fourth quarter of fiscal 2026, revenue guidance is $11.13 billion to $11.23 billion, with GAAP growth of 11% to 12% and constant-currency growth of 10% to 11%. Fourth quarter GAAP diluted earnings per share guidance is $1.47 to $1.49, and non-GAAP diluted earnings per share guidance is $3.02 to $3.04. Fourth quarter current remaining performance obligation growth is expected to be approximately 15%.
Foreign currency fluctuations affected results, with revenue positively impacted by approximately one percent in the quarter and current remaining performance obligation growth positively impacted by one percent compared with constant currency. The fourth quarter has historically been Salesforce's strongest for new business and renewals, while the first quarter is typically the largest collections and operating cash flow quarter. The company expects $160 million to $180 million in future cash payments related to restructuring initiatives. The attrition rate was approximately eight percent as of October 31, 2025. Salesforce also faces risks related to the Informatica integration, AI technology adoption, data privacy and cybersecurity regulations, and competition. The company's operating cash flow growth for the first nine months of fiscal 2026 was 4.5%, a slower pace than the third quarter. Full-year operating cash flow growth guidance is approximately 13% to 14%.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2026 | Q2 FY2026 | QoQ | Q3 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $10.26B | $10.24B | +0.2% | $9.44B | +8.6% |
| Gross profit | $8.00B | $7.99B | +0.1% | $7.34B | +9.1% |
| Gross margin | 78.0% | 78.1% | -0.1 pp | 77.7% | +0.3 pp |
| Research & development | $1.43B | $1.48B | -3.2% | $1.36B | +5.7% |
| Sales & marketing | $3.46B | $3.44B | +0.4% | $3.32B | +4.0% |
| General & administrative | $667.0M | $734.0M | -9.1% | $711.0M | -6.2% |
| Total operating expenses | $5.82B | $5.66B | +2.7% | $5.45B | +6.8% |
| Operating income (loss) | $2.19B | $2.33B | -6.2% | $1.89B | +15.6% |
| Operating margin | 21.3% | 22.8% | -1.5 pp | 20.0% | +1.3 pp |
| Net income (loss) | $2.09B | $1.89B | +10.5% | $1.53B | +36.6% |
| Net margin | 20.3% | 18.4% | +1.9 pp | 16.2% | +4.2 pp |
| Diluted EPS | $2.19 | $1.96 | +$0.23 | $1.58 | +$0.61 |
Risks
Salesforce faces competition as AI technologies are increasingly integrated into enterprise software, and competitors may incorporate AI into their offerings more efficiently or successfully than Salesforce and achieve greater and faster adoption. The MD&A highlights continued investment in generative and agentic AI across all products, including Agentforce and Data Cloud.
Agentforce and Data Cloud are offered through a consumption-based business model, and Salesforce has limited experience determining optimal pricing for consumption-based contracts. Lower customer consumption than expected could result in suboptimal pricing and revenue below targets.
Salesforce completed the Informatica acquisition in November 2025 for approximately $9.6 billion, and the filing cites risks that acquisitions may not realize expected benefits and may be difficult to integrate. The MD&A also notes the October 2025 Regrello acquisition and Informatica as bringing key talent and technology.
In November 2025, Salesforce borrowed the full $6.0 billion available under the Informatica Credit Agreements to fund a portion of the Informatica cash consideration and repay Informatica debt. The filing warns that substantial debt and contractual commitments could impair financing flexibility and require dedicating significant cash flow to debt service.
The risk factor states that threat actors are using AI technologies to create new sophisticated attack methods that are increasingly automated, targeted and coordinated and more difficult to defend against. Salesforce and its customers have been targets of malicious cyberattacks, and a material incident could cause reputational harm, legal exposure and mandatory SEC disclosure.
Salesforce faces significant competition for engineers with AI experience and has experienced challenges recruiting and retaining such talent. Restructuring actions, including workforce reductions, could negatively impact its ability to attract, integrate, retain and motivate key employees.
Evolving AI, privacy and cross-border data transfer rules, including the EU AI Act, DSA and GDPR, may increase compliance costs and limit adoption of Salesforce services. The filing also notes active legal proceedings affected by the repeal or limiting of safe harbors.
Salesforce's strategic investment portfolio is subject to partial or complete loss of invested capital and significant fair value changes. The filing notes mark-to-market and observable price adjustments for equity securities, offset by impairments on privately held investments.
The filing cites volatile and weakened global economic conditions, uncertainty regarding trade policy, tariffs or other trade restrictions, and ongoing conflicts such as the war in Ukraine and the regional conflict in the Middle East. These conditions could delay customer purchasing decisions and reduce the value or duration of subscription contracts.
Salesforce implemented a new enterprise resource planning system in the second quarter of fiscal 2026. The filing states the ERP is essential to financial planning, reporting and compliance, and unforeseen problems or migration issues could harm its ability to manage the business.
Customers have no obligation to renew subscriptions after terms of typically 12 to 36 months, and may renew for fewer subscriptions, shorter lengths or lower cost offerings. The MD&A states attrition rate excluding Slack self-service was approximately eight percent as of October 31, 2025.
As Salesforce targets larger enterprise and governmental customers, sales cycles may become more time-consuming and expensive, with greater configuration, integration and implementation challenges. The filing also notes pricing and packaging strategies for AI offerings such as Agentforce may not be widely accepted.
SaaS KPIs
All quarters →Free cash flow
Non-GAAP operating margin
Billings and other
Current remaining performance obligation (cRPO)
Remaining performance obligation (RPO)
Agentforce and Data 360 ARR
Agentforce ARR
Summary, forecast, risks and KPIs are extracted from Salesforce, Inc.'s SEC filings for Q3 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 2, 2026.