Salesforce Delivers Record Third Quarter Fiscal 2026 Results Driven by Agentforce & Data 360
SAN FRANCISCO--( BUSINESS WIRE)--Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its third quarter fiscal 2026 ended October 31, 2025.
Financial Highlights
“We are raising fiscal year 2026 revenue guidance to $41.45 billion to $41.55 billion, and Q3 cRPO was exceptional, up 11% year-over-year at $29.4 billion, signaling a powerful pipeline of future revenue,” said Marc Benioff, Chair and CEO, Salesforce. “Our Agentforce and Data 360 products are the momentum drivers, hitting nearly $1.4 billion in ARR—an explosive 114% year-over-year gain. We now have over 9,500 paid Agentforce deals and 3.2 trillion tokens processed, underscoring our leadership in building the Agentic Enterprise and driving real outcomes.”
“Our Q3 momentum and continued Agentforce adoption further reinforces our path to achieve our $60 billion plus organic revenue target and our Profitable Growth Framework target of 50 by FY30,” said Robin Washington, President and Chief Financial and Operating Officer, Salesforce.
Salesforce Company Highlights
Guidance
Salesforce's guidance includes GAAP and non-GAAP financial measures. The following tables summarize Salesforce's guidance for the fourth quarter fiscal 2026 and full-year fiscal 2026:
Q4 FY26 Guidance
GAAP
Non-GAAP (1)
Revenue
$11.13 - $11.23 billion
Revenue growth (2)
11% - 12%
10% - 11% CC, $150M Y/Y FX
Includes approximately 3pts Informatica contribution
Diluted net income per share
$1.47 - $1.49
$3.02 - $3.04
Current remaining performance obligation growth (3)
Approximately 15%
Approximately 13% CC, $500M Y/Y FX
Includes approximately 4pts Informatica contribution
Full Year FY26 Guidance
GAAP
Non-GAAP (1)
Revenue
$41.45 - $41.55 billion
Revenue growth (2)
9% - 10%
Approximately 9% CC, $275M Y/Y FX
Includes approximately 80bps Informatica contribution
Subscription & support revenue growth (4)
Slightly above 10%
Slightly below 10% CC
Includes approximately 80bps Informatica contribution
Operating margin
20.3%
34.1%
Diluted net income per share
$7.22 - $7.24
$11.75 - $11.77
Operating cash flow growth
Approximately 13% - 14%
Free cash flow growth
Approximately 13% - 14%
(1) Non-GAAP CC revenue growth, non-GAAP CC remaining performance obligation growth, non-GAAP CC subscription & support revenue growth, non-GAAP operating margin, non-GAAP diluted net income per share, and free cash flow growth are non-GAAP financial measures. See below for an explanation of non-GAAP financial measures. The Company's shares used in computing GAAP diluted net income per share guidance and non-GAAP diluted net income per share guidance excludes any impact to share count from potential Q4 FY26 repurchase activity under our share repurchase program.
(2) Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates.
(3) Current remaining performance obligation FX impact is calculated by taking the current period rates compared to the prior period ending rates.
(4) Subscription & support revenue excludes professional services revenue.
The following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year:
Full Year FY26
Guidance
GAAP operating margin (1)
20.3%
Plus
Amortization of purchased intangibles (2)
4.1%
Stock-based compensation expense (2)(3)
8.4%
Restructuring (2)(3)
1.3%
Non-GAAP operating margin (1)
34.1%
(1) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue.
(2) The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY26.
(3) The percentages shown in the restructuring line have been calculated based on charges associated with the Company's restructuring initiatives. Stock-based compensation expense excludes stock-based compensation expense related to the Company's restructuring initiatives, which is included in the restructuring line.
The following is a per share reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share guidance for the next quarter and the full year:
Fiscal 2026
Q4
FY26
GAAP diluted net income per share range (1)(2)
$1.47 - $1.49
$7.22 - $7.24
Plus
Amortization of purchased intangibles
$
0.59
$
1.79
Stock-based compensation expense
$
1.14
$
3.63
Restructuring (3)
$
0.25
$
0.56
Less
Income tax effects and adjustments (4)
$
(0.43
)
$
(1.45
)
Non-GAAP diluted net income per share (2)
$3.02 - $3.04
$11.75 - $11.77
Shares used in computing basic net income per share (millions) (5)
944
952
Shares used in computing diluted net income per share (millions) (5)
954
959
(1) The Company's GAAP tax provision is expected to be approximately 22.4% for the three months ended January 31, 2026 and 20.5% for the year ended January 31, 2026. The GAAP tax rates may fluctuate due to discrete tax items, changes in valuation allowance assessment, future acquisitions, or other transactions.
(2) The Company's projected GAAP and non-GAAP diluted net income per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses. The impact of future gains or losses from the Company’s strategic investment portfolio could be material.
(3) The estimated impact to GAAP diluted net income per share is in connection with the Company's restructuring initiatives.
(4) The Company’s non-GAAP tax provision uses a long-term projected tax rate of 22.0%, which reflects currently available information and could be subject to change.
(5) The Company's shares used in computing GAAP net income per share guidance and non-GAAP net income per share guidance excludes any impact to share count from potential Q4 FY26 repurchase activity under our share repurchase program.
For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.
Management will provide further commentary around these guidance assumptions on its earnings call.
Product Releases and Enhancements
Salesforce releases major updates for our core platform and apps three times a year, with additional updates happening regularly across our portfolio. These releases are a result of significant research and development investments made over multiple years, and are designed to help customers drive cost savings, boost efficiency, and build trust.
Salesforce leaders will participate in a Q3 FY26 Customer Momentum & Customer Success Update webinar on Thursday, December 4, 2025, at 11:00 AM PT / 2:00 PM ET. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
To learn more about our newest innovations and product release highlights, including our latest Winter 2026 Product Release, see FY26 Q3 Product Releases and Announcements at https://www.salesforce.com/news/stories/fy26-q3-highlights/ and see our latest major release at www.salesforce.com/releases.
Environmental, Social, and Governance (ESG) Strategy
To learn more about our latest initiatives and priorities, review our Stakeholder Impact Report at https://salesforce.com/stakeholder-impact-report.
Quarterly Conference Call
Salesforce plans to host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.
About Salesforce
Salesforce helps organizations of any size become agentic enterprises - integrating humans, agents, apps, and data on a trusted, unified platform to unlock unprecedented growth and innovation. Visit www.salesforce.com for more information.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about the Company's financial and operating results and guidance, which include, but are not limited to, expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, net income per share, operating cash flow growth, operating margin, expected revenue growth, expected foreign currency exchange rate impact, expected current remaining performance obligation growth, expected tax rates or provisions, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, strategic investments, expected restructuring expense or charges and expected timing of product releases and enhancements. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results or outcomes could differ materially and adversely from those expressed or implied by our forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements.
The risks and uncertainties referred to above include -- but are not limited to -- risks associated with:
Further information on these and other factors that could affect the Company’s actual results or outcomes is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings it makes with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Financials section of the Company’s website at investor.salesforce.com/financials/.
Salesforce, Inc. assumes no obligation and does not intend to revise or update publicly any forward-looking statements for any reason, except as required by law.
© 2025 Salesforce, Inc. All rights reserved. Salesforce and other marks are trademarks of Salesforce, Inc. Other brands featured herein may be trademarks of their respective owners.
Salesforce, Inc.
Condensed Consolidated Statements of Operations
(in millions, except per share data)
(Unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Revenues:
Subscription and support
$
9,726
$
8,879
$
28,713
$
26,228
Professional services and other
533
565
1,611
1,674
Total revenues
10,259
9,444
30,324
27,902
Cost of revenues (1)(2):
Subscription and support
1,665
1,501
4,921
4,617
Professional services and other
590
604
1,841
1,809
Total cost of revenues
2,255
2,105
6,762
6,426
Gross profit
8,004
7,339
23,562
21,476
Operating expenses (1)(2):
Research and development
1,433
1,356
4,374
4,073
Sales and marketing
3,456
3,323
10,328
9,786
General and administrative
667
711
2,098
2,069
Restructuring
260
56
300
163
Total operating expenses
5,816
5,446
17,100
16,091
Income from operations
2,188
1,893
6,462
5,385
Gains (losses) on strategic investments, net
263
(217
)
206
(217
)
Other income
61
70
224
282
Income before provision for income taxes
2,512
1,746
6,892
5,450
Provision for income taxes
(426
)
(219
)
(1,378
)
(961
)
Net income
$
2,086
$
1,527
$
5,514
$
4,489
Basic net income per share
$
2.20
$
1.60
$
5.77
$
4.66
Diluted net income per share (3)
$
2.19
$
1.58
$
5.73
$
4.60
Shares used in computing basic net income per share
948
956
955
963
Shares used in computing diluted net income per share
952
965
962
975
(1) Amounts include amortization of intangible assets acquired through business combinations, as follows:
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cost of revenues
$
156
$
131
$
468
$
600
Sales and marketing
230
223
693
669
(2) Amounts include stock-based compensation expense, as follows:
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cost of revenues
$
129
$
135
$
406
$
386
Research and development
271
278
826
814
Sales and marketing
296
312
874
911
General and administrative
109
95
291
267
Restructuring
14
0
29
2
(3) During the three months ended October 31, 2025 and 2024, gains (losses) on strategic investments impacted GAAP diluted net income per share by $0.21 and $(0.17) based on a U.S. tax rate of 23.5% and 24.5%, respectively, and non-GAAP diluted net income per share by $0.22 and $(0.18) based on a non-GAAP tax rate of 22.0%. During the nine months ended October 31, 2025 and 2024, gains (losses) on strategic investments impacted GAAP diluted EPS by $0.16 and $(0.17) based on a U.S. tax rate of 23.5% and 24.5%, respectively, and non-GAAP diluted EPS by $0.17 and $(0.17) based on a non-GAAP tax rate of 22.0%.
Salesforce, Inc.
Condensed Consolidated Statements of Operations
(As a percentage of total revenues)
(Unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Revenues:
Subscription and support
95
%
94
%
95
%
94
%
Professional services and other
5
6
5
6
Total revenues
100
100
100
100
Cost of revenues (1)(2):
Subscription and support
16
16
16
17
Professional services and other
6
6
6
6
Total cost of revenues
22
22
22
23
Gross profit
78
78
78
77
Operating expenses (1)(2):
Research and development
14
14
14
15
Sales and marketing
34
35
34
35
General and administrative
6
8
7
7
Restructuring
3
1
1
1
Total operating expenses
57
58
56
58
Income from operations
21
20
22
19
Gains (losses) on strategic investments, net
2
(3
)
0
0
Other income
1
1
1
1
Income before provision for income taxes
24
18
23
20
Provision for income taxes
(4
)
(2
)
(5
)
(4
)
Net income
20
%
16
%
18
%
16
%
(1) Amounts include amortization of intangible assets acquired through business combinations as a percentage of total revenues, as follows:
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cost of revenues
2
%
2
%
2
%
2
%
Sales and marketing
2
2
2
3
(2) Amounts include stock-based compensation expense as a percentage of total revenues, as follows:
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cost of revenues
1
%
2
%
1
%
2
%
Research and development
3
3
3
3
Sales and marketing
3
3
3
3
General and administrative
1
1
1
1
Restructuring
0
0
0
0
Salesforce, Inc.
Condensed Consolidated Balance Sheets
(in millions)
October 31, 2025
January 31, 2025
Assets
(unaudited)
Current assets:
Cash and cash equivalents
$
8,978
$
8,848
Marketable securities
2,345
5,184
Accounts receivable, net
5,474
11,945
Costs capitalized to obtain revenue contracts, net
1,835
1,971
Prepaid expenses and other current assets
2,431
1,779
Total current assets
21,063
29,727
Property and equipment, net
3,147
3,236
Operating lease right-of-use assets, net
1,949
2,157
Noncurrent costs capitalized to obtain revenue contracts, net
2,293
2,475
Strategic investments
6,410
4,852
Goodwill
52,457
51,283
Intangible assets acquired through business combinations, net
3,491
4,428
Deferred tax assets and other assets, net
4,334
4,770
Total assets
$
95,144
$
102,928
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and other liabilities
$
5,850
$
6,658
Operating lease liabilities, current
564
579
Unearned revenue
14,996
20,743
Total current liabilities
21,410
27,980
Noncurrent debt
8,438
8,433
Noncurrent operating lease liabilities
2,137
2,380
Other noncurrent liabilities
3,138
2,962
Total liabilities
35,123
41,755
Stockholders’ equity:
Common stock
1
1
Treasury stock, at cost
(28,255
)
(19,507
)
Additional paid-in capital
67,448
64,576
Accumulated other comprehensive income (loss)
154
(266
)
Retained earnings
20,673
16,369
Total stockholders’ equity
60,021
61,173
Total liabilities and stockholders’ equity
$
95,144
$
102,928
Salesforce, Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(Unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Operating activities:
Net income
$
2,086
$
1,527
$
5,514
$
4,489
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (1)
851
814
2,511
2,600
Amortization of costs capitalized to obtain revenue contracts, net
548
525
1,637
1,568
Stock-based compensation expense
819
820
2,426
2,380
(Gains) losses on strategic investments, net
(263
)
217
(206
)
217
Changes in assets and liabilities, net of business combinations:
Accounts receivable, net
123
655
6,472
6,681
Costs capitalized to obtain revenue contracts, net
(548
)
(430
)
(1,319
)
(1,105
)
Prepaid expenses and other current assets and other assets
396
(272
)
(117
)
(1,263
)
Accounts payable and accrued expenses and other liabilities
0
32
(1,224
)
(503
)
Operating lease liabilities
(137
)
(144
)
(415
)
(387
)
Unearned revenue
(1,559
)
(1,761
)
(5,747
)
(5,555
)
Net cash provided by operating activities
2,316
1,983
9,532
9,122
Investing activities:
Business combinations, net of cash acquired
(978
)
(179
)
(1,032
)
(517
)
Purchases of strategic investments
(1,123
)
(67
)
(1,446
)
(374
)
Sales of strategic investments
68
13
112
118
Purchases of marketable securities
(366
)
(1,239
)
(3,570
)
(5,041
)
Sales of marketable securities
2,605
554
4,189
3,652
Maturities of marketable securities
452
905
2,317
2,439
Capital expenditures
(139
)
(204
)
(453
)
(504
)
Net cash provided by (used in) investing activities
519
(217
)
117
(227
)
Financing activities:
Repurchases of common stock
(3,801
)
(1,285
)
(8,659
)
(7,753
)
Payments for taxes related to net share settlement of equity awards
(127
)
0
(139
)
0
Proceeds from employee stock plans
239
321
765
1,056
Principal payments on financing obligations
(160
)
(100
)
(438
)
(505
)
Repayments of debt
0
0
0
(1,000
)
Payments of dividends and dividend equivalents
(395
)
(382
)
(1,196
)
(1,154
)
Net cash used in financing activities
(4,244
)
(1,446
)
(9,667
)
(9,356
)
Effect of exchange rate changes
22
(5
)
148
(14
)
Net increase (decrease) in cash and cash equivalents
(1,387
)
315
130
(475
)
Cash and cash equivalents, beginning of period
10,365
7,682
8,848
8,472
Cash and cash equivalents, end of period
$
8,978
$
7,997
$
8,978
$
7,997
(1) Includes amortization of intangible assets acquired through business combinations, depreciation of fixed assets and amortization and impairment of right-of-use assets.
Salesforce, Inc.
Additional Metrics
(Unaudited)
Supplemental Revenue Analysis
Remaining Performance Obligation
Remaining performance obligation ("RPO") represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. RPO is influenced by several factors, including seasonality, the timing of renewals, the timing of term license deliveries, average contract terms and foreign currency exchange rates. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of RPO denominated in foreign currencies are revalued each period based on the period end exchange rates. The portion of RPO that is unbilled is not recorded on the condensed consolidated balance sheets.
RPO consisted of the following (in billions):
Current
Noncurrent
Total
As of October 31, 2025
$
29.4
$
30.1
$
59.5
As of July 31, 2025
29.4
30.5
59.9
As of April 30, 2025
29.6
31.3
60.9
As of January 31, 2025
30.2
33.2
63.4
As of October 31, 2024
26.4
26.7
53.1
Unearned Revenue
Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The change in unearned revenue was as follows (in millions):
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Unearned revenue, beginning of period
$
16,555
$
15,222
$
20,743
$
19,003
Billings and other (1)
8,700
7,694
24,577
22,371
Revenue recognized over time
(9,833
)
(9,023
)
(28,727
)
(26,446
)
Revenue recognized at a point in time
(426
)
(421
)
(1,597
)
(1,456
)
Unearned revenue, end of period
$
14,996
$
13,472
$
14,996
$
13,472
(1) Other includes, for example, the impact of foreign currency translation, contributions from contract assets and business combinations.
Disaggregation of Revenue
Subscription and Support Revenue by the Company's service offerings (1)
Subscription and support revenues consisted of the following (in millions):
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Agentforce Sales
$
2,297
$
2,119
$
6,695
$
6,188
Agentforce Service
2,495
2,288
7,287
6,727
Agentforce 360 Platform, Slack and Other
2,180
1,825
6,227
5,329
Agentforce Marketing and Agentforce Commerce
1,361
1,334
4,051
3,924
Agentforce Integration and Agentforce Analytics
1,393
1,313
4,453
4,060
$
9,726
$
8,879
$
28,713
$
26,228
(1) In the third quarter of fiscal 2026, the Company renamed its service offerings to reference Agentforce. There were no changes in the allocation of revenue between these service offerings coming from this change.
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in millions):
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Americas
$
6,703
$
6,220
$
19,908
$
18,483
Europe
2,470
2,228
7,236
6,557
Asia Pacific
1,086
996
3,180
2,862
$
10,259
$
9,444
$
30,324
$
27,902
Constant Currency Growth Rates
Subscription and support revenues constant currency growth rates by the Company's service offerings were as follows:
Three Months Ended
October 31, 2025
Compared to Three Months
Ended October 31, 2024
Three Months Ended
July 31, 2025
Compared to Three Months
Ended July 31, 2024
Three Months Ended
October 31, 2024
Compared to Three Months
Ended October 31, 2023
Agentforce Sales
8%
8%
11%
Agentforce Service
8%
8%
10%
Agentforce 360 Platform, Slack and Other
19%
16%
8%
Agentforce Marketing and Agentforce Commerce
1%
3%
8%
Agentforce Integration and Agentforce Analytics
6%
12%
5%
Total growth
9%
9%
9%
Revenue constant currency growth rates by geographical region were as follows:
Three Months Ended
October 31, 2025
Compared to Three Months
Ended October 31, 2024
Three Months Ended
July 31, 2025
Compared to Three Months
Ended July 31, 2024
Three Months Ended
October 31, 2024
Compared to Three Months
Ended October 31, 2023
Americas
8%
9%
6%
Europe
7%
7%
9%
Asia Pacific
11%
11%
14%
Total growth
8%
9%
8%
Current remaining performance obligation constant currency growth rates were as follows:
October 31, 2025
Compared to
October 31, 2024
July 31, 2025
Compared to
July 31, 2024
October 31, 2024
Compared to
October 31, 2023
Total growth
11%
10%
10%
Salesforce, Inc.
GAAP Results Reconciled to Non-GAAP Results
The following tables reflect selected GAAP results reconciled to Non-GAAP results.
(in millions, except per share data)
(Unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Non-GAAP income from operations
GAAP income from operations
$
2,188
$
1,893
$
6,462
$
5,385
Plus:
Amortization of purchased intangibles (1)
386
354
1,161
1,269
Stock-based compensation expense (2)(3)
805
820
2,397
2,378
Restructuring
260
56
300
163
Non-GAAP income from operations
$
3,639
$
3,123
$
10,320
$
9,195
Non-GAAP operating margin as a percentage of revenues
Total revenues
$
10,259
$
9,444
$
30,324
$
27,902
GAAP operating margin (4)
21.3
%
20.0
%
21.3
%
19.3
%
Non-GAAP operating margin (4)
35.5
%
33.1
%
34.0
%
33.0
%
Non-GAAP net income
GAAP net income
$
2,086
$
1,527
$
5,514
$
4,489
Plus:
Amortization of purchased intangibles (1)
386
354
1,161
1,269
Stock-based compensation expense (2)(3)
805
820
2,397
2,378
Restructuring
260
56
300
163
Income tax effects and adjustments
(446
)
(436
)
(987
)
(1,076
)
Non-GAAP net income
$
3,091
$
2,321
$
8,385
$
7,223
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Non-GAAP diluted net income per share
GAAP diluted net income per share
$
2.19
$
1.58
$
5.73
$
4.60
Plus:
Amortization of purchased intangibles (1)
0.41
0.37
1.22
1.30
Stock-based compensation expense (2)(3)
0.85
0.85
2.49
2.44
Restructuring
0.27
0.06
0.31
0.17
Income tax effects and adjustments
(0.47
)
(0.45
)
(1.03
)
(1.10
)
Non-GAAP diluted net income per share
$
3.25
$
2.41
$
8.72
$
7.41
Shares used in computing non-GAAP diluted net income per share
952
965
962
975
(1) Amortization of purchased intangibles was as follows:
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cost of revenues
$
156
$
131
$
468
$
600
Sales and marketing
230
223
693
669
$
386
$
354
$
1,161
$
1,269
(2) Stock-based compensation expense, excluding stock-based compensation expense related to restructuring, was as follows:
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Cost of revenues
$
129
$
135
$
406
$
386
Research and development
271
278
826
814
Sales and marketing
296
312
874
911
General and administrative
109
95
291
267
$
805
$
820
$
2,397
$
2,378
(3) Stock-based compensation expense included in the GAAP to non-GAAP reconciliation tables above excludes stock-based compensation expense related to restructuring activities for each of the three months ended October 31, 2025 and 2024 of $14 million and $0 million, respectively, and for the nine months ended October 31, 2025 and 2024 of $29 million and $2 million, respectively, which are included in the restructuring line.
(4) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the amortization of purchased intangibles, stock-based compensation expense and charges associated with the Company's restructuring activities.
Salesforce, Inc.
Computation of Basic and Diluted GAAP and Non-GAAP Net Income Per Share
(in millions, except per share data)
(Unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
GAAP Basic Net Income Per Share
Net income
$
2,086
$
1,527
$
5,514
$
4,489
Basic net income per share
$
2.20
$
1.60
$
5.77
$
4.66
Shares used in computing basic net income per share
948
956
955
963
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Non-GAAP Basic Net Income Per Share
Non-GAAP net income
$
3,091
$
2,321
$
8,385
$
7,223
Non-GAAP basic net income per share
$
3.26
$
2.43
$
8.78
$
7.50
Shares used in computing non-GAAP basic net income per share
948
956
955
963
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
GAAP Diluted Net Income Per Share
Net income
$
2,086
$
1,527
$
5,514
$
4,489
Diluted net income per share
$
2.19
$
1.58
$
5.73
$
4.60
Shares used in computing diluted net income per share
952
965
962
975
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
Non-GAAP Diluted Net Income Per Share
Non-GAAP net income
$
3,091
$
2,321
$
8,385
$
7,223
Non-GAAP diluted net income per share
$
3.25
$
2.41
$
8.72
$
7.41
Shares used in computing non-GAAP diluted net income per share
952
965
962
975
Supplemental Cash Flow Information
Computation of Free Cash Flow, a Non-GAAP Measure
(in millions)
(Unaudited)
Three Months Ended October 31,
Nine Months Ended October 31,
2025
2024
2025
2024
GAAP net cash provided by operating activities
$
2,316
$
1,983
$
9,532
$
9,122
Capital expenditures
(139
)
(204
)
(453
)
(504
)
Free cash flow
$
2,177
$
1,779
$
9,079
$
8,618
Non-GAAP Financial Measures: This press release includes information about non-GAAP operating margin, non-GAAP net income per share, non-GAAP tax rates, free cash flow, constant currency revenue and revenue growth rate, constant currency subscription and support revenue growth rate and constant currency current remaining performance obligation growth rates (collectively the “non-GAAP financial measures”). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s condensed consolidated financial statements prepared in accordance with GAAP. Management uses both GAAP and non-GAAP financial measures when planning, monitoring and evaluating the Company’s performance.
The primary purpose of using non-GAAP financial measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does. Management believes that supplementing GAAP disclosure with non-GAAP disclosure provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further to the extent that other companies use similar methods in calculating non-GAAP financial measures, the provision of supplemental non-GAAP information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP operating results.
Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the following items: stock-based compensation expense, amortization of acquisition-related intangibles and charges associated with the Company's restructuring activities. Non-GAAP net income per share excludes, to the extent applicable, the impact of the following items: stock-based compensation expense, amortization of purchased intangibles, charges related to the Company's restructuring activities and income tax adjustments. These items are excluded because the decisions that give rise to them are not made to increase revenue in a particular period, but instead for the Company’s long-term benefit over multiple periods.
As described above, the Company excludes or adjusts for the following in its non-GAAP results and guidance:
The Company presents constant currency information to provide a framework for assessing how the Company's underlying business performed excluding the effect of foreign currency rate fluctuations. To present constant currency revenue growth rates, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the weighted average exchange rate for the quarter being compared to rather than the actual exchange rates in effect during that period. To present current remaining performance obligation growth rates on a constant currency basis, current remaining performance obligation balances in local currencies in previous comparable periods are converted using the United States dollar currency exchange rate as of the most recent balance sheet date.
The Company defines the non-GAAP measure free cash flow as GAAP net cash provided by operating activities, less capital expenditures.
Other Metrics: The Company defines Agentforce and Data 360 annual recurring revenue ("ARR") as the annualized recurring value of active Data 360 and certain generative artificial intelligence ("AI") subscription agreements, including those for Agentforce and standalone generative AI products, at the end of the reporting period.