Salesforce, Inc. stock research
FY2026 Q1
Salesforce (CRM) Gross Margin — Quarter Ended Apr 30, 2025
Revenue decreased sequentially but increased year-over-year, while cost of revenue rose both sequentially and year-over-year. Gross profit followed a similar pattern, resulting in a gross margin that weakened from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Apr 30, 2025 · FY2026 Q1
Revenue decreased sequentially but increased year-over-year, while cost of revenue rose both sequentially and year-over-year. Gross profit followed a similar pattern, resulting in a gross margin that weakened from the prior quarter but improved compared to the same quarter last year.
- The strongest observable driver of the sequential margin change was the increase in cost of revenue alongside a revenue decrease, while the year-over-year improvement was supported by revenue growth exceeding cost growth.
- Compared to the immediately preceding quarter, gross margin was lower, driven by a larger proportional increase in cost of revenue relative to the decline in revenue. Versus the same quarter one year earlier, gross margin was higher, as revenue growth outpaced the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.0%
Gross profit
$7.6B
Revenue
$9.8B
Cost of revenue
$2.3B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 30, 2024 | $9.1B | $7.0B | $2.2B | 76.3% |
| Jul 31, 2024 | $9.3B | $7.2B | $2.2B | 76.8% |
| Oct 31, 2024 | $9.4B | $7.3B | $2.1B | 77.7% |
| Apr 30, 2025 | $9.8B | $7.6B | $2.3B | 77.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2024
-0.8 pts
Year-over-year change
Apr 30, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the sequential margin change was the increase in cost of revenue alongside a revenue decrease, while the year-over-year improvement was supported by revenue growth exceeding cost growth.
Compared to the immediately preceding quarter, gross margin was lower, driven by a larger proportional increase in cost of revenue relative to the decline in revenue. Versus the same quarter one year earlier, gross margin was higher, as revenue growth outpaced the increase in cost of revenue.
Monitor the level of costs capitalized to obtain revenue contracts, as these are amortized to cost of revenue over time and could influence future gross margin.