Salesforce delivers $11.13B Q1, expands margin to 34.8%, launches $25B buyback
CRM•Salesforce reported Q1 revenue of $11.13 billion, a 13% year-over-year increase, and adjusted EPS of $3.88, surpassing estimates, but guided Q2 revenue to $11.27–$11.35 billion and full-year revenue to $45.9–$46.2 billion. It expanded non-GAAP operating margin to 34.8%, launched a $25 billion accelerated share repurchase and grew Agentforce ARR to $1.2 billion.
1. Q1 Financial Results
Salesforce reported Q1 revenue of $11.13 billion, up 13% year-over-year, and delivered adjusted earnings of $3.88 per share, beating consensus estimates. For the current quarter, management expects revenue of $11.27–$11.35 billion, and for the full fiscal year it sees revenue between $45.9 billion and $46.2 billion, reflecting a modest slowdown in growth expectations.
2. Margin Expansion and Buyback Program
The company expanded its non-GAAP operating margin to 34.8%, a 250-basis-point increase from the prior year, driven by cost restructuring and operational efficiencies. Salesforce also initiated a $25 billion accelerated share repurchase program, funded in part by debt issuance, to enhance long-term free cash flow per share and support shareholder returns.
3. AI-Driven Products Growth
Agentforce reached a $1.2 billion annualized recurring revenue run rate, up from $800 million the previous quarter, while combined AI and data ARR climbed to $3.4 billion. Token processing volumes surged 152% quarter-over-quarter to 28.6 trillion, with over half of bookings coming from existing enterprise customers expanding usage across Slack, Tableau and core applications.
