Built by Claude FableFinancial Trends -- 7/10
| Fiscal Year | Revenue | Y/Y | GAAP Op Margin | Net Income | Diluted EPS | OCF | FCF | FCF Margin |
|---|---|---|---|---|---|---|---|---|
| FY2021 | $21.25B | -- | 2.1% | $4.07B | $4.38 | $4.80B | $4.09B | 19.2% |
| FY2022 | $26.49B | +24.7% | 2.1% | $1.44B | $1.48 | $6.00B | $5.28B | 19.9% |
| FY2023 | $31.35B | +18.4% | 3.3% | $0.21B | $0.21 | $7.11B | $6.31B | 20.1% |
| FY2024 | $34.86B | +11.2% | 14.4% | $4.14B | $4.20 | $10.23B | $9.50B | 27.2% |
| FY2025 | $37.90B | +8.7% | 19.0% | $6.20B | $6.36 | $13.09B | $12.43B | 32.8% |
| FY2026 | $41.53B | +9.6% | 21.5% | $7.46B | $7.80 | $15.00B | $14.40B | 34.7% |
| FY2027E | $45.9-46.2B | +11% | 20.6% | -- | $7.93-7.99 | +4-5% | ~$15.1B | ~32.7% |
| Fiscal Qtr | Revenue ($M) | Y/Y | GAAP Op Mgn | Non-GAAP EPS | FCF ($M) | cRPO ($B) | Dil. Shares (M) |
|---|---|---|---|---|---|---|---|
| FY25Q1 | $9,133 | +10.7% | 18.7% | $2.44 | $6,084 | -- | 985 |
| FY25Q2 | $9,325 | +8.4% | 19.1% | $2.56 | $755 | -- | 973 |
| FY25Q3 | $9,444 | +8.3% | 20.0% | $2.41 | $1,779 | -- | 975 |
| FY25Q4 | $9,993 | +7.6% | 18.2% | $2.78 | $3,816 | -- | 974 |
| FY26Q1 | $9,829 | +7.6% | 19.8% | $2.58 | $6,297 | $29.6 | 970 |
| FY26Q2 | $10,236 | +9.8% | 22.8% | $2.91 | $605 | $29.4 | 962 |
| FY26Q3 | $10,259 | +8.6% | 21.3% | $3.25 | $2,177 | $29.4 | 962 |
| FY26Q4 | $11,201 | +12.1% | 21.9% | $3.81 | $5,323 | $35.1 | 940 |
| FY27Q1 | $11,133 | +13.3% | 21.1% | $3.88 | $6,556 | $33.6 | 871 |
This is the single most important analytical adjustment on the page. Salesforce reports gains and losses on its $7.77B strategic investment portfolio through the income statement and does not exclude them from non-GAAP EPS.
| FY27Q1 non-GAAP diluted EPS | FY27Q1 | FY26Q1 | Y/Y |
|---|---|---|---|
| As reported | $3.88 | $2.58 | +50% |
| Less: strategic investment mark-to-market | ($0.51) | +$0.05 | |
| Ex-investment-gain EPS | $3.37 | $2.63 | +28.1% |
| Memo: ASR share-count benefit disclosed by management | $0.23 | -- |
Verification: $558M × ~0.765 (after non-GAAP tax) ÷ 871M shares = $0.49, against the $0.51 Salesforce discloses. Consistent.
The correct read: operating EPS grew ~28%, not 50%. That is still an excellent result, and it is why this dimension scores 7 rather than 5. But the two largest beats in the six-quarter streak (+24.0% and +24.9%) sit exactly on top of these marks, and revenue surprises across all six beats never exceeded ±1%. This is a margin and share-count story, not a demand-outperformance story.
The ASR's $0.23 is treated differently and deliberately: unlike a mark-to-market, retiring 11% of the share count with debt is permanent and cash-funded, and its cost -- $317M of interest -- is already inside the $3.88. It is a legitimate normalisation only when comparing against a consensus figure set before the ASR existed; it is not an earnings-quality deduction.
Where the score is earned. Between FY21 and FY26 GAAP operating margin rose from 2.1% to 21.5%, an increase of 1,940bps at a revenue base approaching $40B. Free cash flow went from $4.09B to $14.40B and FCF margin from 19.2% to 34.7%. Management strung together at least ten consecutive quarters of operating-margin expansion, and did it without harvesting a churning base -- revenue attrition has been disclosed at roughly 8% and stable. Gross margin held at 77% despite token consumption rising 152% Q/Q. Diluted shares fell 10.2% Y/Y. Reported growth also stopped decelerating, inflecting from +7.6% in FY26Q1 to +13.3% in FY27Q1, and the full-year FY27 revenue guide was raised at the midpoint rather than trimmed.
Where it is capped. Organic growth has been sub-10% for three consecutive years: FY25 +8.7%, FY26 +9.6%, FY27 guided +11% but including ~3pts of Informatica, so ~8% organic. FY27Q1's +13% reported included $444M of Informatica (~4.5pts). The Q2 guide implies organic decelerating to ~6%. The core Agentforce Apps bucket -- 65% of subscription revenue -- grew just +7% cc. cRPO at +14% barely leads revenue at +13%, and both include Informatica, making backlog coincident rather than leading. Operating cash flow grew just +3% and FCF +4% in Q1, so the cash trend had already flattened before interest expense fully loaded.
Why 7 and not 8. An 8 would require the clean trend to still be improving. Back out the investment gain, the ASR and Informatica and you get roughly 8% revenue growth, ~28% EPS growth and +3% operating cash flow, with the largest revenue bucket at +7% cc.
Why 7 and not 6. The first-pass score of 6 imported FY27 forward guidance -- the 20.6% margin guide, the 4-5% FCF growth guide, the ~6% Q2 organic guide -- into a dimension defined as the realised trajectory, and then scored those same items again under Concerns & Risks. Stripping the double-count, what remains realised is +1,940bps of margin, a 3.5x in FCF, stable churn and reported growth inflecting upward. That is a 7.