salesforce(CRM) - 2026 Q1 - Quarterly Report

Revenue and Income - Revenue for the three months ended April 30, 2025, was $9.8 billion, an increase of 8$9,829 million, an increase of 8% compared to $9,133 million in the same period of 2024[177]. - Income from operations for the same period was$1.9 billion, with an operating margin of approximately 20%, up from 19% in the prior year[149]. - Net income for the three months ended April 30, 2025, was $1,541 million, representing 16$1.59, compared to $1.56 from a year ago[157]. Performance Obligations - Total remaining performance obligation as of April 30, 2025, was approximately$60.9 billion, an increase of 13% year-over-year[157]. - Current remaining performance obligation was approximately $29.6 billion, reflecting a 12$60.9 billion, down from $63.4 billion as of January 31, 2025[178]. Cash Flow and Liquidity - Cash provided by operations for the three months ended April 30, 2025, was$6.5 billion, an increase of 4% year-over-year[157]. - For the three months ended April 30, 2025, net cash provided by operating activities was $6.476 billion, an increase from$6.247 billion in the same period of 2024[200]. - As of April 30, 2025, the company had total liquidity of $17.4 billion in cash, cash equivalents, and marketable securities, along with accounts receivable of$4.4 billion[197]. - Cash, cash equivalents, and marketable securities increased to $17,408 million as of April 30, 2025, compared to$14,032 million at the end of January 2025[178]. Expenses and Profitability - The cost of revenues for the three months ended April 30, 2025, was $2,265 million, representing 23$7,564 million, which is 77% of total revenues, compared to 76% in Q1 2024[177]. - Operating expenses totaled $5,622 million for the three months ended April 30, 2025, consistent at 57$1,460 million, maintaining 15% of total revenues, with a 10% increase in headcount[189]. Shareholder Returns - During the three months ended April 30, 2025, the company repurchased approximately 10 million shares for approximately $2.7 billion[157]. - The company paid approximately$402 million in dividends during the same period[157]. - The company announced a dividend of $0.416 per share for the three months ended April 30, 2025, totaling$406 million[212]. - The company authorized a Share Repurchase Program totaling $30 billion, with$7.9 billion remaining for future repurchases as of April 30, 2025[210]. Strategic Investments and Acquisitions - The company plans to acquire Informatica Inc. for approximately $8 billion, which will be funded through a combination of new debt and cash on hand[216]. - Losses on strategic investments for the three months ended April 30, 2025, were$63 million, a significant decline from gains of $37 million in Q1 2024[195]. - The company incurred$36 million in restructuring costs primarily related to employee transitions during the three months ended April 30, 2025[195]. Tax and Regulatory - The company recorded a tax provision of $433 million on pretax income of$2.0 billion for the three months ended April 30, 2025, resulting in an effective tax rate of 22%, up from 18% in 2024[196]. - The effective tax rate for the three months ended April 30, 2025, was 22%, up from 18% in the same period of 2024, primarily due to lower excess tax benefits from stock-based compensation[196]. Market Trends and Future Outlook - The buying environment trends have stabilized, but economic unpredictability may impact future growth[150]. - The company expects to continue investing in infrastructure to scale operations and enhance security measures, with no significant changes to future payment estimates under fixed contractual obligations[214]. - Future cash payments related to restructuring initiatives are expected to be between $160 million and$190 million, primarily for workforce costs[215].