
Salesforce revenue climbs 13% as massive $25B share buyback begins
Salesforce (NYSE:CRM) reported a 13% increase in first-quarter revenue, bolstered by steady demand for its cloud-based customer management software and initial contributions from its Informatica acquisition.
The San Francisco-based company also announced an aggressive expansion of its capital return program through a new accelerated share repurchase agreement.
Total revenue for the fiscal first quarter ended April 30 rose to $11.1 billion, driven by gains across its subscription and support businesses, which generated $10.6 billion.
The top-line figures include a $444 million total contribution from Informatica, with $428 million of that directed into subscription revenue.
Current remaining performance obligation, a closely watched metric tracking future revenue under contract, climbed 14% year-over-year to $33.6 billion, indicating sustained enterprise spending despite a shifting economic backdrop.
Total remaining performance obligations reached $67.9 billion, marking an 11% increase from the prior year.
Profitability saw a notable expansion during the quarter as the company continued its focus on structural efficiency.
Salesforce recorded a non-GAAP operating margin of 34.8%, while its GAAP operating margin stood at 21.1%.
This margin expansion trickled down to the bottom line, with non-GAAP diluted earnings per share jumping 50% year-over-year to $3.88.
On a GAAP basis, diluted net income per share reached $2.42, representing a 52% increase from the same period last year.
Cash generation remained strong during the three-month period, with operating cash flow hitting $6.7 billion, up 3% from the previous year.
Free cash flow rose 4% to reach $6.6 billion.
The customer relationship management specialist utilized its robust liquidity to aggressively reward investors, returning a total of $27.5 billion to shareholders in the quarter, which comprised $27.1 billion in share repurchases and $365 million in dividend payments.
Looking forward, capital allocation will remain heavily weighted toward equity retirement.
Salesforce has entered into a new $25 billion accelerated share repurchase agreement.
The company has already taken upfront delivery of 103 million shares, representing approximately 80% of the total volume anticipated under the authorization. F
inal settlement of the accelerated buyback program is expected to conclude in the third quarter of fiscal 2027.