CRM 10-K & 10-Q changes, risk factors and insider trading

•Any breaches in our security measures or those of our third-party data center hosting facilities,providers, cloud computing platform providersproviders, customers, partners, or other third-party service partners,vendors, or the underlying Internet infrastructure of the Internet that cause unauthorized access toto, adisclosure, customer’salteration, corruption, destruction or loss of customer data, our data or our IT systems, or the blockage or disablementdisruption of authorized access to our services.thereto.

•Any interruptions or delays in services from third parties, including data center hosting facilities, cloud computing platform providers and other hardware and software vendors, as well as internetInternet availability,infrastructure, or from our inability to adequately plan for and manage service interruptions or infrastructure capacity requirements.

•A more time-consuming and expensive sales cycle, pricing pressure and implementation and configuration challenges as we target more of ourfor sales efforts atto larger enterprise customers.

•Any discontinuance by third-party developers and providersvendors in embracing our technology delivery model and enterprise cloud computing services, or customers asking us for warranties for third-party applications, integrations, data and content.

•SocialSocial, ethical, and ethicalregulatory issues, including the development, deployment, use or capabilities of AI in our offerings.

•The evolving landscape related to ESGenvironmental, social and governance matters.

•Privacy concerns and laws as well as evolving regulation of cloud computing, AI services, increased restriction of cross-border data transfers and other regulatory developments.

•Volatility in theour marketstock price of our common stock and associated litigation.

•Provisions in our certificategoverning of incorporation and bylawsdocuments and Delaware law that might discourage, delay or prevent a change of control of the Company or changes in our management.

•The occurrence of natural disasters and other catastrophic events beyond our control.

If our security measuresmeasures, or those of our third-party data center hosting facilities,providers, cloud computing platform providersproviders, orcustomers, partners, other third-party service partners,vendors or the underlying infrastructureInternet of the Internetinfrastructure, are breached,breached andor otherwise compromised, resulting in the unauthorized access isto, obtaineddisclosure, toalteration, acorruption, customer’sdestruction or loss of customer data, our data or our IT systems, or disruption of authorized access is blocked or disabled,thereto, our services may be perceived as not being secure,insecure, customers may curtailreduce or stopterminate usingtheir use of our services, and we may incur significant reputational harm, legal exposureliability, andregulatory liabilities,scrutiny or a negative financial impact.

Our services involve the storage and transmission of our customers’ and our customers’ customers’ proprietary and other sensitive data, including financial, health and other personal information. Our services and underlying infrastructure have in the past and may in the future be materially breached or compromisedcompromised, including, for example, as a result of the following:

•third-party attempts to fraudulently induce our employees, partnerscustomers, partners, or customersthird-party vendors to disclose sensitive information to gain unauthorized access to our or our customers’ data or IT systems, or our data or our IT systems;

•efforts by hackersthreat oractors, sophisticated groups, such asincluding criminal organizations, state-sponsored organizationsactors orand nation-states, to launch coordinated cyberattacks or supply chain attacks on internally builtour infrastructure or onthat of our third-party cloud-computing platform providers,vendors, including through ransomware, destructive malware andmalware, distributed denial-of-service attacks or exploitation of previously unknown “zero-day” vulnerabilities;

•third-party attempts to abusemisuse our marketing, advertising, messaging or social products and functionalities to impersonate persons or organizations and disseminate information that is false, misleading or malicious;

•vulnerabilities existingarising withinfrom new technologies and infrastructures, including those from acquired companies, or resulting fromacquisitions, enhancements and updates to our existing serviceproducts, offeringsand the adoption and deployment of AI technologies within our products, services, internal systems, which may introduce novel security, data governance, or operational risks;

•vulnerabilities in the products or components acrosswithin the broad ecosystem thatin which our services operate in conjunction with and areupon dependentwhich onthey depend;

•attacks on, or vulnerabilities in, the many different underlying networks and services that power the Internet thaton which our products depend on,depend, most of which are not under our control or the control of our third-party vendors, partners or customers; and

•employee or contractor errorserrors, omissions or intentional acts that compromise our security systems.

TheseAlthough riskswe aredevote mitigated,significant resources to the extent possible, byprotecting our ability to maintaindata and improveIT businesssystems, and data governance policies and enhance processes and internal security controls, including our ability to escalate and respond to known and potential risks. Wewe can provide no assurances that our security measures, including implemented systems and processes designed to protect the confidentiality, integrity and availability of our customers’ and our customers’ customers’ proprietary and other sensitive data, will provide absolute security or otherwise be effective or that a material breachcybersecurity incident will not occur. For example, ourOur ability to mitigate these risks may be impacted by the following:

•evolving and increasingly sophisticated techniques used to breach or sabotagedisrupt IT systems and infrastructure, including as a result of the increaseduse useor exploitation of AI technologies by badthreat actors,actors to accelerate, scale or personalize cyberattacks, which aremay generallyincrease not recognized until launched against a target,speed and couldeffectiveness resultand inlimit our being unableability to anticipateanticipate, detect or implement adequate measures to preventmitigate such techniquesthreats;

•the increasing complexity of our internal IT systems as we incorporateintegrate acquired businesses and secure IT environments from acquired companies and early adoption ofadopt new technologies and newdata-sharing ways of sharing datamodels; and

•our limited control over our customerscustomers, orpartners, and third-party technology providersvendors (including those authorized by customers to access their data), or over the processing of data by third-partysuch technologythird providers,parties, which may notlimit allowour usability to maintain the integrity or security of such transmissions or processing.

In the normal course of business, we and our customers are and have been the target of malicious cyberattacks and have experienced other security incidents.threats. Although,Although to date,date such identified security eventswe have not identified any security incidents involving our systems that have had a material financial impact,impact on us, there can be no assurance that future cyberattacksincidents will not be material or significant. Additionally, asAs our market presence grows, we may face increased risks of cyberattacks orand other security threats,threats. andAdditionally, as AI technologies, including generative AIand models,agentic developAI, rapidly,continue to evolve, threat actors are using and exploiting these technologies to createenhance newthe sophisticatedsophistication, attackscale, methodsspeed and effectiveness of security threats that aremay increasingly automated, targeted and coordinated andbe more difficult to detect and defend against. Any delay in detecting, containing, or remediating a cybersecurity incident may result in additional harm, and in certain cases the full scope and impact of any such incident may not be immediately apparent.

A security breach orcybersecurity incident could result in unauthorized parties obtaining access to, or the loss or denial of authorized access to, our IT systems or data, or those of our customers’ systems or data,customers, including intellectual property and other proprietary, sensitive or other confidential information. We haveare contractualsubject to contractual, regulatory and other legal obligations to notify relevant stakeholders of certain security breaches.incidents. For example, SEC rules require disclosure on Form 8-K of the nature, scope and timing of any material cybersecurity incident and the reasonably likely impact of any such incident. Assessing whether an incident is material or reportable may require complex judgment and investigation, and disclosure of an incident may itself adversely affect our reputation, customer relationships and exposure to legal or regulatory proceedings. A security breachincident or resulting mandatoryrelated disclosure could result in a loss of confidence in the security of our services, damageharm our reputation, negatively impact our future sales, disrupt our business andoperations, lead to increases inincrease insurance premiums and result in legal, regulatory and financial exposureliability. Additionally, it may take considerable time for us to investigate and liability.evaluate the full impact of cybersecurity attacks, particularly for sophisticated attacks, which may inhibit our ability to provide prompt, full and reliable information about the incident to our customers, regulators and the public. Further, there can be no assurance that our insurance coverage will be sufficient in type or amount to cover the financial, legal, business, or reputational losses that may resultarising from a cybersecurity incidentincident. orIn breachaddition, of our IT systems. Finally, theprevention, detection, preventioninvestigation and remediation of knownactual or potentialsuspected securityvulnerabilities vulnerabilities,or incidents, including determining whether anotification cybersecurityor incidentdisclosure is notifiable or reportable,required, may not be straightforward andstraightforward, may result in additional financial burdens due to additionalsignificant direct and indirect costscosts, toincluding respondincreased toinfrastructure or alleviate problems caused by the actual or perceivedand security breach, such as additional infrastructure capacity spending to mitigate any system degradation and the reallocationdiversion of resources from development activities.

We have in the past and may in the future findidentify defects in or experience disruptions to our services. Such issues may arise in a variety of circumstances, including due to ourfrom customers using our services in unanticipated ways that maydisrupt cause a disruption in servicesaccess for other customers attempting to access their data; as a result offrom employee, contractor or other third-party action or inaction; or due tofrom the complexity of our services, which incorporate a variety of hardware, proprietary software and third-party and open-source software. Across the industry, cloud services frequently contain undetected errors when first introduced or when new versions or enhancements are released. We may also encounter difficulties integrating acquired or licensed technologies into our services and in augmenting the technologies we use to meet quality standards that are consistent with our brand and reputation, which may result in our services containing errors or defects.

We have experienced and may in the future experience defects in our, our customers’, or third-party vendors’ products thatand components, which may create vulnerabilities that inadvertently permit unauthorized access to protected customer data. We can provide no assurance that such product defects or other vulnerabilities will not occur in the future, have a material adverse effect on our business or subject us to substantial liability. Vulnerabilities in open source or anyopen-source, proprietary or third-party productproducts and components can persist even after security patches have been issued if customersupdates haveare not installedtimely the most recent updates,implemented or if thethreat attackersactors exploited theexploit vulnerabilities before patchingremediation wasis complete. In some cases, vulnerabilities may not be immediately detected, which may make it difficult to recover critical services and lead to damaged assets.

Since our customers userely on our products and services for important aspects of their business,operations, errors, defects, service disruptions in service or other performance problemsissues have in the past adversely impacted our customers’ businessescustomers and could do so in the future. As a result, customers could elect to not renew ourtheir services orservices, delay or withhold payment to us. We could also lose future sales or customers may make warranty or other claims against us,us. whichSuch outcomes could resultreduce infuture ansales, increase in our allowance for doubtful accounts, an increase in collection cycles forand accountsexpose receivableus orto the expenselitigation and riskrelated of litigation.expenses.

Any interruptions or delays in services from third parties, including data center hosting facilities, cloud computing platform providers and other hardware and software vendors, as well as internetInternet availability,infrastructure, or from our inability to adequately plan for and manage service interruptions or infrastructure capacity requirements, could impair the delivery of our services and harm our business.

We currently rely on third-party data center hosting facilities and cloud computing platform providers located in the United States and other countries, as well as the many different underlying networks and services that power the Internet, to deliver our products,products and services and business operations and to operate critical business systems. We also rely on computer hardware purchased or leased from, software licensed from, and cloud computing platforms provided by,by third parties in order to offer our products and services, including database software, hardware and data from a variety ofmultiple vendors. Any disruptiondisruption, or damage to,degradation or failure of our systemssystems, generally,or includingthose of the systemsthird ofparties third-partyon providerswhich we rely on,rely, could result in service interruptions and harm our business. We have from time to time experienced service interruptions and such interruptions may occur in the future. As we increase our reliance on these third-party systems,systems increases, and particularly with respect toon third-party cloud computing platforms, our exposure to damage from service interruptions or otherand performance or quality issues may also increase. Service interruptions or other performance or quality issues may cause us to issue credits or pay penalties, cause customers to makeassert warranty or other claims against us or to terminate their subscriptions, and adversely affect our attrition rates and our ability to attract new customers, all of which wouldcould reduce our revenue. Our business and reputation would also be harmed if our customers and potential customers believeperceive our services areas unreliable.

For many of our offerings, our production environment and customers’customer data are replicated inat ageographically separate facility located elsewhere.facilities. Certain offerings, including some offerings of companiesthose added through acquisitions, may be serveddelivered through alternate facilities or arrangements. We do not control the operation of any of these facilities, and they may be vulnerable to damage or interruption from earthquakes,events floods, fires, power loss, telecommunications failures and similar events. They may also be subject to break-ins, sabotage, intentional actsoutside of destructionour orcontrol, vandalism or similar misconduct,such as wellnatural as local administrative actions, changes to legaldisasters or permitting requirements and litigation to stop, limit or delay operation. In addition, supply chain disruptions due to geopolitical developments in Europe may lead to power disruptions in regions where our facilities are located.disruptions. Despite precautions taken at these facilities, such as disaster recovery and business continuity arrangements, theunanticipated occurrenceevents, ofproblems, anyoperational of the foregoing events or risks, or a natural disaster or public health emergency, an act of terrorism, a decision to close the facilities without adequate noticefailures or other unanticipated problems or operational failures at these facilitiesdisruptions could result in lengthyprolonged service interruptions, and no assurancethere can be providedno assurance that any such interruptions would be remediated without significant cost orcost, in a timely manner or at all.

The hardware, software, data and cloud computing platforms that we rely on, including, for example, the large language models leveraged in our AI offerings, may not continue to be available at reasonable prices, on commercially reasonable terms or at all. Any loss of the right to use any of thesesuch hardware, software, data or cloud computing platforms could significantly increase our expenses and disrupt or otherwise result in delays indelay the provisioningprovision of our services until equivalent technology is either developed byinternally us, or, if available, is identified,or obtained throughfrom purchasethird or licenseparties and integrated into our services,systems. andThere can be no assurance can be provided that such equivalentreplacement technology would be developedavailable or obtainedimplemented in a timely manner or at all.

As we scale our operations, the amountvolume and typenature of informationdata transferredprocessed onby our offerings continuescontinue to evolve, including as a result of the deployment of AI technologies, and our infrastructure capacity requirements, including network capacitycapacity, computing power and computingenergy power,requirements, may increase as a result. IfAdditionally, weincreased doenergy notconsumption, accuratelyincluding planas a result of AI adoption, climate-related events, energy market volatility, and power grid disruptions may increase the operational costs related to inputs across our value chain, including for ourdata infrastructurecenters. capacity requirements andIf we experience significant strains on our data center capacity, whether due to insufficient infrastructure capacity or for other reasons outside of our control, our customers could experience performance degradation or service outages that may subject us to financial liabilities, result in customer losseslosses, subject us to litigation and harm our reputation and business. As we add data centers and capacity and continue to move to cloud computing platform providers, we move or transfer our data and our customers’ data from time to time. Despite precautions taken during this process, any unsuccessful data transfers may impair the delivery of our services, which may damage our business.

As part of our business strategy, we periodically acquire complementary businesses, joint ventures, services and technologies and intellectual property rights. We continue to evaluate such opportunities and expect to make such acquisitions and other transactions and arrangements in the future.future, which may involve numerous risks and could create unforeseen operating difficulties and expenditures, including:

•potential identified or unknown security vulnerabilities in acquired products or technologies that expose us to additional securitycybersecurity risks orrisks, delay our ability to integrate the productintegration into our service offerings, asor wellcreate as difficultieschallenges in increasing or maintaining the security standards forof the acquired technologytechnologies;

•difficulty of transitioning the acquired technology onto our existing platforms and customer acceptance of multiple platforms on a temporary or permanent basis;

•challenges converting the acquired company’s revenue recognition policies and forecasting the related revenues, including both consumption- and subscription-based revenues and term software license revenue, as well as appropriate allocation of the customer consideration to the individual deliverablesrevenue;

•operational and financial difficulties and strains on resources in integrating acquired operations, technologies, services, platforms and personnel (including cultural integration and retention of employees);

•regulatory challenges from antitrust or other regulatory authorities that may block, delay or impose conditions (such as divestitures, ownership or operational restrictions or other structural or behavioral remedies) on the completion of transactions or the integration of acquired operations;

Any of these risks could harm our business or negatively impact our results of operations. In addition, to facilitate acquisitions, we may seek additional equity or debt financing, which may not be available on terms favorable to us or at all, which may affect our ability to complete subsequent acquisitions, and which may affect the risks of owning our common stock. For example, ifIf we finance acquisitions by issuing equity or convertible or other debt securities or taking out loans, our existing stockholders may be diluted, or we could face constraints related to the terms of, and repayment obligation related to, the incurrence of indebtedness that could affect theour marketstock priceprice. For example, in connection with our acquisition of ourInformatica, commonwe stock.entered into the Informatica Credit Agreements on an unsecured basis. In November 2025, the Company borrowed the full $6.0 billion available under the Informatica Credit Agreements to finance a portion of the cash consideration for the acquisition, repay existing indebtedness of Informatica and its subsidiaries, and pay related fees, costs, and expenses. For more information, see Note 9 “Debt” to the consolidated financial statements in Item 8 of Part 2.

Our ability to acquire other businesses or technologies, or integrate acquired businesses effectively, may be impaired by trade tensions and increased global scrutiny of foreign investments and acquisitions in the technology sector. For example, several countries, including the United States and countries in Europe and the Asia-Pacific region, are considering or have adopted restrictions of varying kinds on transactions involving foreign investments and acquisitions. Antitrust authorities in a number of countries have also reviewed acquisitions in the technology industry with increased scrutiny. Governments may continue to adopt or tighten restrictions of this nature, some of which may apply to acquisitions or integrations of businesses by us, and such restrictions or government actions could negatively impact our business and financial results.

We continue to experience significant growth in our customer base, including through acquisitions, which has placed a strain on and in the future may strain our management, administrative, operational and financial infrastructure. We anticipate that significant additional investments, including in human capital software, as well as leveraging agentic AI and other technologies, will be required to scale our operations and increase productivity, to address the needs of our customers, to further develop and enhance our services, to expand into new geographic areas and tosupport scale with our overallcontinued growth. These investments will increase our cost base, making it more difficult for us to offset any future revenue shortfalls by reducing expenses in the short term. We may not be able to make these investments as quickly or effectively as necessary to successfully scale our operations.

We regularly upgrade or replace our various software systems and processes. If the implementations of these new applications are delayed, or if we encounter unforeseen problems with our new systems and processes or in migrating away from our existing systems and processes, our operations could be negatively impacted. For example, in the second quarter of fiscal 2026, we implemented a new enterprise resource planning system (“ERP”). Among other things, our ERP is essential to our financial planning, reporting, and compliance programs, and any unforeseen problems with our new ERP or in migrating away from previous systems and processes could harm our ability to manage our business could be negatively impacted.business.

Our success will depend in part upon the ability of our senior management to plan and manage our projected growth effectively. To do so, weWe must continue to increase the productivity of our existing employees and to hire, train and manage new employees as needed. Additionally, changes in our work environment and workforce may not meet the needs and expectations of our workforce or may create operational and workplace culture challenges, which could negatively impact our ability to increase employee productivity or attract and retain our employees and could adversely affect our operations. Furthermore, new AI offerings and technologies, which are integrated into our operations, may disrupt workforce needs and could adversely affect our operations if not managed properly. To manage the expected domestic and international growth of our operations and personnel, we will need to continue to improve our operational, financial and management controls, our reporting systems and procedures and our utilization of real estate. If we fail to successfully scale our operations and increase productivity, we may be unable to execute our business plan and the value of our common stock could decline.

If our customers do not renew their subscriptions for our services or if they reduce the number of paying subscriptions at the time of renewal, our revenue and current remaining performance obligation could decline and our business may suffer. If customer usage of certain consumption-based offerings is below expected levels, our revenue could decline. If we cannot accurately predict subscription renewals or upgrade rates or optimal pricing for consumption-based contracts, we may not meet our revenue targets, which may adversely affect the market price of our commonstock stock.price.

Our customers have no obligation to renew their subscriptions for our services after the expiration of their contractual subscription period, which is typically 12 to 36 months, and in the normal course of business, some customers have elected not to renew. In addition, ourOur customers may renew for fewer subscriptions, renew for shorter contract lengths or switch to lower cost offerings of our services, particularly in times of general economic uncertainty.services. It is difficult to predict attrition rates given our varied customer base and the number of multi-year subscription contracts. Our attrition rates may increase or fluctuate as a result of various factors, including customer dissatisfaction with our services,dissatisfaction, customers’ spending levels, mix of customer base, decreases in the number of users at our customers, competition, pricing increases or changes, such as the increased prevalence of consumption-based pricing models and economic downturns.

Our future success also depends in part on our ability to sell additional features and services, more subscriptions or enhanced editions of our services to our current customers. This may also require increasingly sophisticated and costly sales efforts that are targeted at senior management. Similarly, the rate at which our customers purchase new or enhanced services depends on a number of factors, including general economic conditions and customer receptiveness to any price changes related to these additional features and services. In addition, the markets and monetization strategies for certain offerings, including Agentforce and Data 360, remain relatively new and uncertain and may present additional risks and challenges.

We periodically change and make adjustments to our sales organization in response to market opportunities, competitive threats, management changes, product introductions or enhancements, acquisitions, sales performance, increases in sales headcount, cost levels and other internal and external considerations. Such sales organization changes have in some periods resulted in, and may in the future result in, a reduction of productivity, which could negatively impact our rate of growth in the current and future quarters and operating results,results. including revenue. In addition,Further, any significant change to the way we structure our compensation of our sales organizationorganization’s compensation structure may be disruptive and maynegatively affect our revenueoperating growth.results.

We sell our services throughout the world and are subject to risks and challenges associated with international business. We intend to seek to continue to expand our international sales efforts. The risks and challenges associated with sales to customers outside the United States or those that can affect international operations generally, include:

•regional economic and political conditions, natural disasters, acts of war, terrorism and actual or threatened public health emergenciesemergencies, or other geopolitical events, including the evolving relations between the United States and China, the United States and Russia, and ongoing conflicts, such as the war in Ukraine and the regional conflict in the Middle East;

Salesforce is a global leader in customer relationship management (“CRM”) technology, enablinghelping companiesorganizations of everyany size andbecome industryagentic to connect with their customers through the power of data, artificial intelligence (“AI”), CRM and trust.enterprises. Founded in 1999, we bring humanshumans, agents, apps, and data together withon AIa agentstrusted, unified platform to driveunlock customergrowth successand on one deeply unified platform.innovation.

Our platform unites sales, service, marketing, commerce and IT teams by connecting customer data across systems, apps and devices to create a complete view of customers. With this single source of customer truth and integrated AI,artificial intelligence (“AI”), teams can be more responsive, productive and efficient, deliver intelligent, personalized experiences across every channel and increase productivity. During the third quarter of fiscal 2025, we introduced Agentforce, a new layer of our trusted platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. We continue to invest for growth, including investing in generative and agentic AI across all products, which we believe will change how our customers help their customers, and continuously look to expand our leadership role in the cloud computing industry.

We continue to focus on several key growth levers, including driving multiple service offering adoption, increasing our penetration with enterprise and international customers and expanding our industry-specific reach with more vertical software solutions. These growth levers often require a more sophisticated go-to-market approach and, as a result, we may incur additional costs upfront to obtain new customers and expand our relationships with existing customers, including additional sales and marketing expenses specific to subscription and support revenue. As a result, we have seen that customers with many of these characteristics drive higher annual revenues and have lower attrition rates than our company average. In addition to these growth levers, our mergers and acquisitions framework has included several acquisitions that have accelerated our agentic roadmap, including our October 2025 acquisition of Regrello Corp. (“Regrello”) and our November 2025 acquisition of Informatica, Inc. (“Informatica”). These acquisitions bring in key talent and technology to accelerate innovation.

In addition to our focus on top line growth levers, weWe are also focused on reducing our operating expenses to improve our operating margin. ForWe example,have inundertaken January 2023, we announced avarious restructuring plan intendedinitiatives to reduce operating costs, improve operating margins and continue advancing our ongoing commitment to profitable growthgrowth, which has included a reduction of our workforce by approximately ten percent andworkforce, office space reductionsand data centers within certain markets. TheWe employee actions were substantially completed in fiscal 2024 and the real estate actions are expected to be fully complete in fiscal 2026. In addition, we continuedcontinue to evaluate and operationalize future programs to drive further operational efficiencies, optimize our management structure and increase cost optimization efforts to realize long-term sustainable growth,growth. includingWe targeted workforce and office space reductions that were initiated in fiscal 2025 and are expectedexpect to be substantially complete in fiscal 2026. We have startedcontinue to seeexperience improvements in our operating expenses acrossas alla operatingpercentage categories,of with the most opportunity in sales and marketing expense and general and administrative expenses. Over the long term, we expect to see additional operating expense improvements,revenue, which could include various restructuring initiatives or measured hiring initiatives to drive operational efficiencies.

•Revenue: For fiscal 2025,2026, revenue was $37.9$41.5 billion, an increase of nineten percent year-over-year.

•Income from Operations: For fiscal 2025,2026, income from operations was $7.2$8.3 billion as compared to $5.0$7.2 billion from a year ago. Operating margin, which represents income from operations as a percentage of total revenue, increased to approximately 1920 percent for fiscal 20252026 compared to approximately 1419 percent in the prior year.year period.

•Remaining Performance Obligation: Total remaining performance obligation, which represents all future revenue under contract yet to be recognized, as of January 31, 20252026 was approximately $63.4$72.4 billion, an increase of 1114 percent year-over-year. Current remaining performance obligation as of January 31, 20252026 was approximately $30.2$35.1 billion, an increase of nine16 percent year-over-year.

•Share Repurchase Program: During theFor fiscal year ended January 31, 2025,2026, we repurchased approximately 3050 million shares of our common stock for approximately $12.7 billion as compared to 30 million shares for approximately $7.8 billion.billion from a year ago.

•Dividend Program: During theFor fiscal year ended January 31, 2025,2026, we paid approximately $1.5$1.6 billion in dividends.dividends and dividend equivalents as compared to $1.5 billion from a year ago.

In addition, the expanding global scope of our business and the heightened volatility of global markets expose us to the risk of fluctuations in foreign currency markets. Total revenues in the fiscal year ended January 31, 20252026 werewas minimallypositively impacted by approximately one percent in foreign currency fluctuations compared to the fiscal year ended January 31, 2024.2025. Our current remaining performance obligation growth as of January 31, 20252026 compared to January 31, 20242025 was negativelypositively impacted by twothree percent compared to what would have been reported using constant currency rates. The impact of foreign currency fluctuations could impact our near-term results and ability to accurately predict our future results and earnings. The impact of these fluctuations can also be compounded by the seasonality of our business in which our fourth quarter has historically been our strongest quarter for new business and renewals.

Subscription and support revenues primarily include subscription fees from customers accessing our enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term software licenses, and support revenues from the sale of support and updates beyond the basic subscription fees or related to the sales of software licenses. Our Cloud Services allow customers to use our multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Subscription and support revenues also include revenues associated with term software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from support and updates is recognized as such support and updates are provided, which is generally ratably over the contract term. Changes in contract duration for multi-year term software licenses can impact the amount of revenues recognized upfront. Revenues from term software licenses represent less than ten percent of total subscription and support revenue for fiscal 2025.2026.

Our growth in revenues is also impacted by attrition. Attrition represents the reduction or loss of the annualized value of our contracts with customers. We calculate our attrition rate at a point in time on a trailing twelve-month basis as of the end of each month. In general, we exclude service offerings from acquisitions from our attrition calculation until they are fully integrated into our customer success organization. As of January 31, 2025,2026, our attrition rate, excluding Slack self-service,self-service and current year acquisitions, was approximately eight percent.

Unearned revenue primarily consists of billings to customers for our subscription service. Over 90 percent of the value of our billings to customers is for our subscription and support service. We generally invoice our customers in advance, in annual installments, and typical payment terms provide that our customers pay us within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or in revenue depending on whether transfer of control to customers has occurred. In general, we collect our billings in advance of the subscription service period. We typically issue renewal invoices in advance of the renewal service period, and depending on timing, the initial invoice for the subscription and services contract and the subsequent renewal invoice may occur in different quarters. There is a disproportionate weighting toward annual billings in the fourth quarter, primarily as a result of large enterprise account buying patterns. Our fourth quarter has historically been our strongest quarter for new business and renewals. The year-on-year compounding effect of this seasonality in both billing patterns and overall new and renewal business causes the value of invoices that we generate in the fourth quarter for both new business and renewals to increase as a proportion of our total annual billings. Accordingly, because of this billing activity, our first quarter is typically our largest collections and operating cash flow quarter. Generally, our second or third quarter has historically been our smallest operating cash flow quarter. Unearned revenues, accounts receivable and operating cash flow may also be impacted by acquisitions. For example, operating cash flows may be adversely impacted by acquisitions due to transaction costs, financing costs such as interest expense and lower operating cash flows from the acquired entity.

Cost of subscription and support revenues primarily consists of expenses related to our employee-related costs, which includes salaries, benefits and stock-based compensation expense, delivering our service and providing support, including the costs of data center capacity, certain fees paid to various third parties for the use of their technology, services and data, and allocated overhead. Our cost of subscription and support revenues also includes amortization of certain acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s researchdeveloped and development efforts.technology. Also included in the cost of subscription and support revenues are expenses incurred supporting the free user base of Slack, including third-party hosting costs and employee-related costs specific to customer experience and technical operations.

Restructuring consists of charges related to employee transition, severance payments, employee benefits and stock-based compensationcompensation, as well as exitdata center exits, office space reductions and impairment charges associated with officelong-lived space reductions.assets. Restructuring excludes allocated overhead.

Business Combinations. Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date with respect to tangible and intangible assets acquiredacquired, andas well as liabilities assumed and pre-acquisition contingencies. We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date as well as the useful lives of those acquired intangible assets.

Strategic Investments. Accounting for strategic investments in privately held debt and equity securities in which we do not have a controlling interest or significant influence requires us to make significant estimates and assumptions. Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. Privately held debt and equity securities are valued using significant unobservable inputs or data in an inactive market and these valuations require our judgment due to the absence of market prices and inherent lack of liquidity. The carrying values of our privately held equity securities are adjusted if there are observable price changes in a same or similar security from the same issuer or if there are identified events or changes in circumstances that may indicate impairment, as discussed below. In determining the estimated fair value for these investments, we utilize the most recent data available and apply valuation methods, including the market approachapproach, the common stock equivalent (“CSE”) method, and option pricing models (“OPM”), adjusted to reflect the specific rights and preferences of the classes of securities we hold. Such information available to us from investee companies is supplemented with estimates such as volatility and expected time to liquidity.

AtAs of January 31, 2025,2026, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling $14.0$9.6 billion and accounts receivable of $11.9$14.3 billion. Our cash equivalents and marketable securities are comprised primarily of corporate notes and obligations, U.S. treasury securities, U.S. agency obligations, asset-backed securities, foreign government obligations, mortgage-backed obligations, covered bonds, time deposits, money market mutual funds and municipal securities. Our Revolving Loan Credit Agreement (as defined below), which provides the ability to borrow up to $5.0 billion in unsecured financing (the “Credit Facility”) as of January 31, 2025,2026, also serves as a source of liquidity.

Net cash provided by operating activities could continue to be affected by various risks and uncertainties, including, but not limited to, the risks detailed in Part I,II, Item 1A, “Risk Factors.” We believe our existing cash, cash equivalents, marketable securities, cash provided by operating activities, unbilled amounts related to contracted noncancellable subscription agreements, which are not reflected on the balance sheet, and, if necessary, our borrowing capacity under our Credit Facility will be sufficient to meet our working capital, capital expenditure and debt maintenance needs over the next 12 months and thereafter.

In evaluating our business, you should carefully consider the following discussion of material risks, events and uncertainties that make an investment in us speculative or risky in addition to the other information included in this AnnualQuarterly Report. A manifestation of any of the following risks and uncertainties could, in circumstances we may or may not be able to accurately predict, materially and adversely affect our business and operations, growth, reputation, prospects, operating and financial results, financial condition, cash flows, liquidity and stock price. Some of the factors, events and contingencies discussed below may have occurred in the past, but the disclosures below are not representations as to whether or not the factors, events or contingencies have occurred in the past and instead reflect our beliefs and opinions as to the factors, events or contingencies that could materially and adversely affect us in the future. The risks and uncertainties described below are not the only ones we face. Other events, factors or uncertainties that we do not currently anticipate or that we currently deem immaterial also may affect our business, financial condition, results of operations, cash flows, other key metrics and the trading price of our common stock. Therefore, you should not consider the following risks to be a complete statement of all the potential risks or uncertainties that we face.

•vulnerabilities arising from new technologies and infrastructures, including those from acquisitions, enhancements and updates to our existing products, and the adoption and deployment of AI technologies within our products, services, and internal systems, which may introduce novel security, data governance, or operational risks;

•employee or contractor errors, omissionsomissions, unauthorized use or input of sensitive data, or intentional acts that compromise our security systems.systems or lead to inadvertent exposure or loss of sensitive information.

Since our customers rely on our products and services for important aspects of their operations, errors, defects, service disruptions or other performance issues have in the past adversely impacted our customers and could do so in the future. As a result, customers could elect to not renew their services, delay or withhold payment or make warranty or other claims against us. Such outcomes could reduce future sales, increase in our allowance for doubtful accounts, increase collection cycles and expose us to litigation and related expenses.

As we scale our operations, the volume and nature of data processed by our offerings continue to evolve, including as a result of the deployment of AI technologies, and our infrastructure capacity requirements, including network capacity, computing power and energy requirements, may increase as a result. Additionally, increased energy consumption, including as a result of AI adoption, climate-related events, energy market volatility, and power grid disruptions may increase the operational costs related to inputs across our value chain, including for data centers. Increasing constraints on data center power, land, and water availability could limit our ability to expand data center capacity in affected regions, increase operational costs, or require us to modify our infrastructure plans in ways that could impair the delivery of our services. If we experience significant strains on our data center capacity, whether due to insufficient infrastructure capacitycapacity, public or governmental opposition to data centers or the unavailability of or limitations on suitable sites, or for other reasons outside of our control, our ability to migrate or scale operations could be constrained and our customers could experience performance degradation or service outages that may subject us to financial liabilities, result in customer losses, subject us to litigation and harm our reputation and business. As we add data centers and capacity and continue to move to cloud computing platform providers, we move or transfer our data and our customers’ data from time to time. Despite precautions taken during this process, any unsuccessful data transfers may impair the delivery of our services, which may damage our business.

Any of these risks could harm our business or negatively impact our results of operations. In addition, to facilitate acquisitions, we may seek additional equity or debt financing, which may not be available on terms favorable to us or at all, which may affect our ability to complete subsequent acquisitions, and which may affect the risks of owning our common stock. If we finance acquisitions by issuing equity or convertible or other debt securities or taking out loans, our existing stockholders may be diluted, or we could face constraints related to the terms of, and repayment obligation related to, the incurrence of indebtedness that could affect our stock price. For example, in connection with our acquisition of Informatica, we entered into the Informatica Credit Agreements on an unsecured basis. In November 2025, the Company borrowed the full $6.0 billion available under the Informatica Credit Agreements to finance a portion of the cash consideration for the acquisition, repay existing indebtedness of Informatica and its subsidiaries, and pay related fees, costs, and expenses. For more information, see Note 8 “Debt” to the consolidated financial statements in Item 81 of Part 2.I.

Our success will depend in part upon the ability of our senior management to plan and manage our projected growth effectively. We must continue to increase the productivity of our existing employees and to hire, train and manage employees as needed. Additionally, changes in our work environment and workforce may not meet the needs and expectations of our workforce or may create operational and workplace culture challenges, which could negatively impact our ability to increase employee productivity or attract and retain our employees and could adversely affect our operations. Furthermore, new AI offerings and technologies, which are integrated into our operations, may disrupt workforce needs and could adversely affect our operations if not managed properly. To manage the expected growth of our operations and personnel, we will need to continue to improve our operational, financial and management controls, our reporting systems and procedures and our utilization of real estate. If we fail to successfully scale our operations, refine our operating model, maintain effective governance and accountability, executiveexecute cross-functionally, and increase productivity across our organization, we may be unable to execute our business plan and the value of our common stock could decline.

We may face greater costs, longer sales cycles, greater competition and less predictability in completing some of our sales to large enterprise customers, including governmental entities and customers in regulated industries. In these market segments, the customer’s decision to use our services—particularly our newer AI and data-related offerings such as Agentforce and Data360Data 360—may require us to provide extensive implementation planning, education regarding the use and benefits of our services, as well as address other concerns, such as heightened privacy and data protection requirements.

In addition, larger enterprise customers and governmental entities often demand significant pricing and packaging flexibility, as well as complex configuration and integration services and features. These opportunities often require us to devote greater sales support and professional services resources to individual customers, driving up costs and time required to complete sales and diverting our own sales and professional services resources to a smaller number of larger transactions, while potentially requiring us to delay revenue recognition on some of these transactions until the technical or implementation requirements have been met. Additionally, the pricing and packaging strategies for enterprise and other customers for our offerings, including Agentforce and Data360,Data 360, may not be widely accepted. Our adoption of or failure to adopt changes to our pricing and packaging models, or failure to otherwise execute our go-to-market strategies for large, complex transactions, may harm our business.

Further, entry into markets with weaker protection of brands or changes in the legal systems in countries where we operate may impact our ability to protect our brands. If we fail to maintain, enhance or protect our brands, or if we incur excessive expenses in our efforts to do so, our business, operating results and financial condition may be materially and adversely affected.

We are exposed to volatility in our operating results due to changes in market prices, observable price changes and impairments of our strategic investments. Concentrations of portfolio value in specific industry sectors, such as emerging technology and AI, or in one or more specific companies, could increase our exposure to such volatility in the event of industry-wide or company-specific downturns. The measurement of our non-marketable equity securities at fair value is inherently subjective and requires management judgment and estimation. The resulting gains or losses have been and could be material depending on market conditions and events, particularly in periods with economic uncertainty, inflation, geopolitical conflict, volatile public equity markets or unsettled global market conditions.

Equality and sustainability are core values of the Company. In furtherance of these values, we have in the past and may in the future establish and disclose quantitative and qualitative statements related to equality and sustainability matters, which are subject to numerous risks and dependencies. The proliferation of regulations and guidance addressing climate, human capital and other topics at the regional, state and national levels has required and may continue to require significant effort and resources, and our practices, processes and controls may not ensure compliance with evolving standards. Further, various regulations or guidance may conflict with each other, making universal compliance challenging as a multinational company, and our status as a government contractor in various jurisdictions, including but not limited to the U.S. where we are headquartered, may also result in greater exposure or differentiated obligations or requirements with which we would seek to comply. The standards and frameworks for tracking and reporting on these matters continue to evolve, and our use, interpretation or application of such frameworks and standards may change from time to time or differ from those of other companies, which may result in a lack of consistent or meaningful comparative data from period to period or between Salesforce and other companies. Furthermore, the integration and use of AI in our products and operations introduces operational risks and complexities, which may impact our ability to accurately track, benchmark, or report on these matters. In addition, our practices and disclosures may not satisfy, appropriately respond to the concerns of or be supported by all investors, customers, partners, regulators, enforcement authorities or other stakeholders, whose expectations and requirements are evolving, varied, and oftentimes conflicting. Any violation of, non-compliance with or failure to meet such expectations or requirements, or negative publicity related to our practices or disclosures, could result in harm to our reputation, our ability to attract or retain employees, and our attractiveness as an investment, business partner, acquiror or service provider, could expose us to increased scrutiny or to regulatory or enforcement actions or litigation, and could cause us to incur increased costs to address or defend against such actions.

These laws continue to evolve and expand, including through the adoption of new comprehensive data protection regimes such as India’s Digital Personal Data Protection Act 2023, and through the introduction of additional implementing rules and regulations in various jurisdictions. As a result, we and our customers may become subject to additional regulatory burdens. New EU laws, including the DSA, the Data Act and the EU AI Act, have also been adopted and, depending on how they are implemented, interpreted and enforced, may impose additional rules, restrictions or compliance requirements on the development, deployment or use of our products and services, including AI-enabled features.

Further, jurisdictions are increasingly applying existing data privacy, consumer protection and other laws to AI, including emerging AI technologies such as generative AI,AI. and are also enacting, or considering enacting,Additionally, AI-specific legal frameworks, such as the EU AI Act, and the Utah Artificial Intelligence Policy Act, Colorado'’s law governing the Coloradouse of automated decision-making technology (SB 26-189), the Texas Responsible Artificial Intelligence ActGovernance andAct, regulations issued under the draft CCPA regulations ongoverning automated decision-making technology.technology, and similar laws and regulations that have passed, gone into effect or are being considered in other jurisdictions, can impose obligations on us or third-party providers on which we rely. As these laws and regulations are implemented, interpreted and enforced, they may impose new or additional compliance obligations or restrictions on our products, services or business practices.practices, and requirements may vary or conflict across jurisdictions. Any failure, or perceived failure, by us to comply with applicable AI-related legal requirements could have an adverse impact on our business. Data privacy and other related regulations may also seek to impose additional direct security and enforcement obligations on us as a service provider or potentially require us to mandate specific security configurations for our customers. These requirements may impact the flexibility of our service offerings, increase our operational oversight costs, and potentially subject us to administrative sanctions.

In addition, we have in the past been, and may in the future be, sued by third parties who seek to target us for actions taken by our customers, including through the use or misuse of our products. For example, we have beenare subject to allegations in legal proceedings that we should be liable for the use of certain of our products by third parties. Although we believe we have a strong defense for these claims, such claims could cause reputational harm to our brand or result in liability.liability Regardlessand, regardless of outcome, these types of claims could cause reputational harm to our brand or resultbe incostly liability.to defend.

Our business depends, in part, on sales to government organizations, and significant changes in the contracting or fiscal policies of such government organizations could adversely affect our business and operating results. Contracting with federal, state, local and foreign governments or state-owned entities subjects us to various procurement regulations and other requirements relating to these contracts’ formation, administration and performance, as well as broader compliance obligations regarding our corporate activities and how we engage with government officials. Government contracts may also at times be modified or terminated for convenience. We are from time to time subject to audits, inquiries and investigations relating to our government contracts, which may result in adverse perceptions of our business, reductions in utilization of our services or termination of our contracts without cause and at any time. Additionally, any violations could result in various civil and criminal penalties and administrative sanctions, including termination of contracts, refunding or suspending of payments, forfeiture of profits, payment of fines and suspension or debarment from future government business, as well as reputational harm. Additionally, our relationships with certain government entities may result in negative publicity or reputational harm. Furthermore, pressures on and uncertainty regarding the U.S. federal government’s budget and potential changes in budgetary priorities could adversely affect the funding for and purchases of our services by government organizations. The occurrence of any of the foregoing could adversely impact our future sales, costs of doing business and operating results.

As of AprilJuly 30,31, 2026, we had a substantial level of outstanding debt, including our Senior Notes. We are also party to the Revolving Loan Credit Agreement, which provides for our $5.0 billion Credit Facility, as well as the 2026 Term Loan Credit Agreement. Although there were no outstanding borrowings under the Credit Facility as of AprilJuly 30,31, 2026, we may use the proceeds of future borrowings under the Credit Facility for general corporate purposes. In March 2026, we borrowed $6.0 billion under the 2026 Term Loan Credit Agreement to repay in full the outstanding principal under the Informatica Credit Agreements and to pay related fees and expenses. In March 2026, we also issued the March 2026 Notes with an aggregate principal amount of $25.0 billion, with maturities ranging from 2028 to 2066. We used the net proceeds from the March 2026 Notes to fund an accelerated share repurchase program of our common stock.

Geopolitical crises, natural disasters or other catastrophic events have in the past and may in the future cause damage or disruption to our people, operations, international commerce and the global economy, and thus could have a strong negative effect on us. Our business operations, as well as the business operations of our customers and third-party providers or suppliers that we rely on, are subject to interruption or disruption by geopolitical crises,crises (including tensions between governments of markets where we operate), natural disasters, fire, power or water shutoffs or shortages, telecommunications failures, terrorist attacks, acts of violence, political and/or civil unrest, acts of war or other military actions, actual or threatened public health emergencies and other events beyond our control. For example, the occurrence of regional conflicts, epidemics or a global pandemic have in the past and may in the future materially affect how we and our customers operate our businesses, as well as our operating results and cash flows. Although we maintain crisis management and disaster response plans, if such catastrophic events occur it could make it difficult or impossible for us to deliver our services to our customers or negatively impact demand for our services, which could materially and adversely affect our financial condition and operating results.

Highlights from First QuarterSix Months of Fiscal 2027

•Revenue: For the threesix months ended AprilJuly 30,31, 2026, revenue was $11.1$22.5 billion, an increase of 1312 percent year-over-year.

•Income from Operations: For the threesix months ended AprilJuly 30,31, 2026, income from operations was $2.3$4.7 billion as compared to $1.9$4.3 billion from a year ago. Operating margin, which represents income from operations as a percentage of total revenue, increased to approximately 21 percent for the threesix months ended AprilJuly 30,31, 2026 compared to approximately 20 percent in the prior year period.2025.

•Net Income per Share: For the threesix months ended AprilJuly 30,31, 2026, diluted net income per share was $2.42$6.67 as compared to diluted net income per share of $1.59$3.55 from a year ago. Gains (losses) on strategic investments impacted our diluted net income per share by $2.87 and ($0.05) for the six months ended July 31, 2026 and 2025, respectively, based on a U.S. tax rate of 23.5%. Our $25 billion Acceleratedaccelerated Shareshare Repurchaserepurchase (“ASRprogram, Agreements”)which executedcommenced in March 20262026, resulted in the repurchase of approximately 103 million shares inwhich the period and benefittedbenefited our diluted net income per share by $0.14.$0.57 for the six months ended July 31, 2026.

•Cash: Cash provided by operations for the threesix months ended AprilJuly 30,31, 2026 was $6.7$8.0 billion, an increase of three10 percent year-over-year. Total cash, cash equivalents and marketable securities as of AprilJuly 30,31, 2026 was $11.8$11.4 billion.

•Remaining Performance Obligation: Total remaining performance obligation, which represents all future revenue under contract yet to be recognized, as of AprilJuly 30,31, 2026 was approximately $67.9$66.3 billion, an increase of 11 percent year-over-year. Current remaining performance obligation as of AprilJuly 30,31, 2026 was approximately $33.6$33.5 billion, an increase of 14 percent year-over-year.

•Dividend Program: For the threesix months ended AprilJuly 30,31, 2026, we paid approximately $365$729 million in dividends and dividend equivalents as compared to $402$801 million fromfor athe yearsix ago.months ended July 31, 2025.

Our diversified product portfolio and global customer base has provided us with operational resiliency across various geographies, products, and industry segments. During the firstsecond quarter of fiscal 2027, we experienced sustainedstrong growthmomentum in Agentforce Apps and Data 360, bolstered by the acquisition of Informatica.

In addition, the expanding global scope of our business and the heightened volatility of global markets expose us to the risk of fluctuations in foreign currency markets. Total revenues in the threesix months ended AprilJuly 30,31, 2026 were positively impacted by approximately twoone percent infrom foreign currency fluctuations compared to the threesix months ended AprilJuly 30,31, 2025. Relative to AprilJuly 30,31, 2025, our current remaining performance obligation growth as of AprilJuly 30,31, 2026 was positivelyminimally impacted by one percent compared to what would have been reported using constant currency rates. The impact of foreign currency fluctuations could impact our near-term results and ability to accurately predict our future results and earnings. The impact of these fluctuations can also be compounded by the seasonality of our business in which our fourth quarter has historically been our strongest quarter for new business and renewals.

We derive our revenues from two sources: (1) subscription and support revenues and (2) professional services and other revenues. Subscription and support revenues accounted for approximately 95 percent of our total revenues for the threesix months ended AprilJuly 30,31, 2026.

Subscription and support revenues primarily include subscription fees from customers accessing our enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term software licenses, and support revenues from the sale of support and updates beyond the basic subscription fees or related to the sales of software licenses. Our Cloud Services allow customers to use our multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Subscription and support revenues also include revenues associated with term software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from support and updates is recognized as such support and updates are provided, which is generally ratably over the contract term. Changes in contract duration for multi-year term software licenses can impact the amount of revenues recognized upfront. Revenues from term software licenses represent less than ten percent of total subscription and support revenue for the three and six months ended AprilJuly 30,31, 2026.

Our growth in revenues is also impacted by attrition. Attrition represents the reduction or loss of the annualized value of our contracts with customers. We calculate our attrition rate at a point in time on a trailing twelve-month basis as of the end of each month. In general, we exclude service offerings from acquisitions from our attrition calculation until they are fully integrated into our customer success organization. As of AprilJuly 30,31, 2026, our attrition rate, excluding Slack self-service, Informatica, and current year acquisitions, was approximately eight percent.

The following tables set forth selected data for each of the periods indicated (in millionsmillions, except percentage data):

The comparability of our operating results in the three and six months ended AprilJuly 30,31, 2026 compared to the same period in fiscal 2026 was impacted by our recent acquisitions, including the acquisition of Informatica in November 2025. In our discussion of changes in our results of operations for the three and six months ended AprilJuly 30,31, 2026, compared to the same period in fiscal 2026, we may quantitatively disclose the impact of our acquired products and services for the one-year period subsequent to the acquisition date to the growth in certain of our revenues where such discussions would be meaningful. Expense contributions from our recent acquisitions for each of the respective period comparisons generally were not separately identifiable due to the integration of these businesses into our existing operations or were insignificant to our results of operations during the periods presented.

The increase in subscription and support revenues for the three and six months ended AprilJuly 30,31, 2026 was primarily caused by volume-driven increases from new business, which includes new customers, upgradesupgrades, and additional subscriptions from existing customers. Pricing was not a significant driver of the increase in revenues for theeither period. Revenues from term software licenses, which are recognized at a point in time, represented approximately four percent and five percent of total subscription and support revenues for the three and six months ended July 31, 2026, respectively, and six percent of total subscription and support revenues for the three and six months ended AprilJuly 30, 2026 and31, 2025. Subscription and support revenues accounted for approximately 95 percent of our total revenues for the three and six months ended AprilJuly 30,31, 2026 and 95 percent for the three and six months ended July 31, 2025.

The increasedecrease in professional services and other revenues for the three and six months ended AprilJuly 30,31, 2026 was primarily due incremental revenue from Informatica which was partially offset byto less demand for larger, multi-year transformation engagements, which may continue in the near term.

The acquisition of Informatica in November 2025 contributed approximately $444$456 million and $900 million of total revenues infor the three and six months ended AprilJuly 30,31, 2026.2026, respectively.

Revenues by geography are determined based on the region of the Salesforce contracting entity, which may be different than the region of the customer. The increase in revenues across all regions was primarily due to the continued execution of our business and growth strategy, including increasing our geographic reach primarily through extending our go-to-market capabilities globally. ForeignTotal currencyrevenues were minimally impacted due to fluctuations in foreign currencies during the three months ended July 31, 2026 compared to the three months ended July 31, 2025, and were positively impacted theby yearone overpercent yearfrom foreign currency fluctuations induring revenuethe bysix approximatelymonths twoended percent.July 31, 2026 compared to the six months ended July 31, 2025.

We expect that research and development expenses will likely remain consistent as a percentage of revenue over time as we continue investing in new and existing technologies, including AI, agents, Data Cloud offerings, and the integration of Informatica. EfficienciesWe plan to reinvest savings from efficiencies realized from the rapid deployment of generative AI technologies will be reinvested to accelerate our product roadmap.

In the three and six months ended AprilJuly 30,31, 2026, we incurred approximately $80$94 million and $174 million, respectively, of costs were incurred related to our restructuring initiatives, which waswere primarily related to employee transitions, severance payments and employee benefits. We do not expect to incur significant additional charges in connection with our restructuring initiatives in the near term.

Other Income and ExpensesExpense

Interest expense primarily relates to our debt as well as our finance leases. Interest expense increased during the three and six months ended AprilJuly 30,31, 2026, primarily due to incremental interest expense associated with our March 2026 debt offering. We expect this debt offering to cause interest expense to increase as compared to prior year throughout fiscal 2027.

Gains (losses) on strategic investments, net consists primarily of mark-to-market adjustments related to observable price adjustments related to our privately held equity securities, our publicly held equity securities and other adjustments, including impairments. Our strategic investment portfolio continues to be affected by market conditions for companies in which we hold private securities, including the pace of technological change driven by AI and volatility in public equity markets. For the three months ended AprilJuly 30,31, 2026, the net gain on our strategic investment portfolio wasgains were primarily driven by realized gains on privately held equity investments of $350 million and unrealized gains on privately held equity investments of $328$2.9 billion, partially offset by impairments on privately held investments of $285 million. For the six months ended July 31, 2026, our strategic investment portfolio gains were primarily driven by unrealized gains on privately held equity investments of $3.2 billion and realized gains on sales of securities of $354 million, partially offset by impairments on privately held investments of $119$404 million. The realized gains in the period were primarily comprised of a $268 million gain resulting from the exit of a privately held equity investment. The unrealized gains infor the periodthree wereand primarilysix comprisedmonths ended July 31, 2026 include gains of a$2.7 $268billion millionand mark-to-market$3.0 gainbillion, fromrespectively, onerelated privatelyto heldthe equityCompany’s investment.investment in Anthropic.

Other income primarily consists of interestinvestment income on our marketable securities portfolio. Other income decreased during the three and six months ended AprilJuly 30,31, 2026,2026 compared to the three and six months ended July 31, 2025, primarily due to a decrease in investment income from lower interest rates.

We recorded a tax provision of $614$1.0 billion and $519 million on pretax income of $2.7 billion for the three months ended AprilJuly 30,31, 2026.2026 and 2025, respectively, and a tax provision of approximately $1.6 billion and $952 million for the six months ended July 31, 2026 and 2025, respectively. Our effective tax raterates increased from a year ago primarily due to stock-based compensation. Our effective tax rate may fluctuate due to changes in our domestic and foreign earnings, or material discrete tax items, or a combination of these factors resulting from transactions or events, including acquisitions, changes to our operating structure and other macroeconomic factors.

As of AprilJuly 30,31, 2026, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling $11.8$11.4 billion and accounts receivable of $5.1$6.3 billion. Our cash equivalents and marketable securities are comprised primarily of corporate notes and obligations, U.S. treasury securities, U.S. agency obligations, asset-backed securities, foreign government obligations, mortgage-backed obligations, covered bonds, time deposits, money market mutual funds and municipal securities. Our Revolving Loan Credit Agreement (as defined below), which provides the ability to borrow up to $5.0 billion in unsecured financing (the “Credit Facility”) as of AprilJuly 30,31, 2026, also serves as a source of liquidity.

For the three and six months ended AprilJuly 30,31, 2026 and 2025, our cash flows were as follows (in millions):

The net cash provided by operating activities during the threesix months ended AprilJuly 30,31, 2026 was primarily comprised of net income of $2.1$5.6 billion, adjusted for non-cash items, including $985$3.2 millionbillion of gains on strategic investments, $2.0 billion of depreciation and amortizationamortization, and $857$1.8 millionbillion of stock-based compensation expense. Net cash provided by operating activities can be significantly impacted by factors such as growth in new business, timing of cash receipts from customers, vendor payment terms and timing of payments to vendors. Net cash provided by operating activities during the threesix months ended AprilJuly 30,31, 2026 was further benefited by the change in accounts receivable, net of $9.4$8.0 billionbillion, partially offset by the changes in unearned revenue of $4.0 billion and accounts payable and accrued expenses and other liabilities of $1.9$5.6 billion. As our business continues to grow, and assuming our expenses remain in line with or less than our revenue growth, we expect to continue to see growth in net cash provided by operating activities.

The net cash provided by operating activities during the threesix months ended AprilJuly 30,31, 2025 was primarily comprised of net income of $1.5$3.4 billion, adjusted for non-cash items, including $843$1.7 millionbillion of depreciation and amortization and $814$1.6 millionbillion of stock-based compensation expense. Net cash provided by operating activities during the threesix months ended AprilJuly 30,31, 2025 was further benefited by the changes in accounts receivable, net of $7.6$6.3 billion, partially offset by the change in unearned revenue of $2.9$4.2 billion and the change in accounts payable and accrued expenses and other liabilities of $1.0$1.2 billion.

The net cash used in investing activities during the threesix months ended AprilJuly 30,31, 2026 was primarily related to net outflows for acquisitions of $1.5 billion, of which $1.1 billion related to the Qualified acquisition, as well as net outflows from marketable securities activity of $676 million and capital expenditures of $145 million, partially offset by net inflows from strategic investment activity of $90$871 million.

The net cash used in investing activities during the threesix months ended AprilJuly 30,31, 2025 was primarily related to net outflows from marketable securities activity of $1.2 billion, net outflows from strategic investment activity of $143$279 million and capital expenditures of $179$314 million, partially offset by net inflows from marketable securities activity of $245 million.

The net cash used in financing activities during the threesix months ended AprilJuly 30,31, 2026 was primarily related to proceeds from the issuance of debt, net of issuance costs of $24.8 billion and proceeds from equity plans of $230 million partially offset by repurchases of common stock of $27.2$27.3 billion, which includes our March 2026 accelerated share repurchase, and payments of dividends and equivalents of $365$729 million.million, partially offset by proceeds from the issuance of debt, net of issuance costs of $24.8 billion.

The net cash used in financing activities during the threesix months ended AprilJuly 30,31, 2025 was primarily related to $2.6$4.9 billion used for repurchases of common stock and $402$801 million related to payments of dividends, partially offset by $294$526 million of proceeds from equity plans.

As of AprilJuly 30,31, 2026, we had senior unsecured debtnotes outstanding, with maturities starting in March 2028 and extending through March 2066, with a total carrying value of $33.3 billion. We were in compliance with all debt covenants as of AprilJuly 30,31, 2026.

In October 2024, we entered into a credit agreement with the lenders and issuing lenders party thereto, and Bank of America, N.A., as administrative agent (the “Revolving Loan Credit Agreement”). The Revolving Loan Credit Agreement provides for a $5.0 billion Credit Facility and matures in October 2029. We may use the proceeds of future borrowings under the Credit Facility for general corporate purposes. There were no outstanding borrowings under the Credit Facility as of AprilJuly 30,31, 2026.

In March 2026, we entered into a $6.0 billion five-year senior unsecured term loan credit agreement (the “2026 Term Loan Credit Agreement”) with the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The 2026 Term Loan Credit Agreement matures in March 2031. We used the full proceeds of the 2026 Term Loan Credit Agreement to settle all of the outstanding borrowings under our $4.0 billion 364-day Credit Agreement and our $2.0 billion Three-year Credit Agreement, which were originally entered into in June 2025 to finance the acquisition of Informatica. As of AprilJuly 30,31, 2026, the full $6.0 billion was outstanding under the 2026 Term Loan Credit Agreement.

In March 2026, we entered into accelerated share repurchase agreements (the “ASR Agreements”) with a syndicate of financial institutions to repurchase an aggregate of $25.0 billion of our common stock and received an initial delivery of approximately 103 million shares at an average price per share of $198.34, which represents approximately 80 percent of the total shares expected to be repurchased under the ASR Agreements. The final settlement of repurchased shares is expected to occur in the secondthird halfquarter of fiscal 2027.

Excluding the repurchases made under the ASR Agreements,Agreements in March 2026, we additionally repurchased the following shares of our common stock in the open market, (in millions, except average price per share):

As of AprilJuly 30,31, 2026, we were authorized to purchase a remaining $22.9 billion of the Company’s common stock under the Share Repurchase Program. Subsequent to AprilJuly 30,31, 2026, we have not completed any additional share repurchases under the Share Repurchase Program.

As of AprilJuly 30,31, 2026, there were no significant changes to our estimates of future payments under our fixed contractual obligations and commitments as presented in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Item 7 of Part II of our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. For more information regarding our lease obligations as of AprilJuly 30,31, 2026, see Note 5 “Leases and Other Commitments” to the condensed consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q. We generally expect to satisfy these commitments with cash on hand and cash provided by operating activities.

During the three months ended April 30, 2026 and in future years, we have made, andWe expect to continue to make,make additional investments in enterprise cloud computing services to allow us to scale with our customers and continue to evolve our security measures. We plan to upgrade or replace various internal systems to scale with our overall growth. While we continue to make investments in our infrastructure service providers to provide capacity for the growth of our business, our strategy may continue to change related to these investments and we may slow the pace of our investments.

As of AprilJuly 30,31, 2026, we expect approximately $130$170 million to $150$190 million in future cash payments related to our restructuring initiatives, primarily related to workforce costs, such as severance payments. We generally expect to satisfy these commitments with cash on our balance sheet and cash provided by operating activities.