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Item 1. Financial Statements

2025-09-04 compared with 2025-05-29 · 162 added, 103 removed, 759 unchanged (26% of the section changed)

3 unchanged sentences

(in millions)

April 30, 2025 January 31, 2025

July 31, 2025 January 31, 2025

Assets (unaudited)

30 unchanged sentences

Additional paid-in capital 66,701 64,576

Accumulated other comprehensive loss ( 130 ) ( 266 )

Accumulated other comprehensive income (loss) 47 ( 266 )

Retained earnings 18,987 16,369

5 unchanged sentences

(in millions, except per share data)

1 Three Months Ended April 30,

2 Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Subscription and support $ 9,690 $ 8,764 $ 18,987 $ 17,349

23 unchanged sentences

(1) Amounts include amortization of intangible assets acquired through business combinations, as follows:

Three Months Ended April 30,

Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Cost of revenues $ 150 $ 231 $ 312 $ 469

1 unchanged sentence

(2) Amounts include stock-based compensation expense, as follows:

Three Months Ended April 30,

Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Cost of revenues $ 126 $ 132 $ 277 $ 251

7 unchanged sentences

(in millions)

1 Three Months Ended April 30,

2 Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Net income $ 1,887 $ 1,429 $ 3,428 $ 2,962

Other comprehensive income (loss), net of reclassification adjustments:

Foreign currency translation and other losses 110 ( 23 )

Foreign currency translation and other gains (losses) 180 ( 4 ) 290 ( 27 )

Unrealized gains (losses) on marketable securities ( 3 ) 48 28 18

7 unchanged sentences

(in millions)

Three Months Ended April 30, 2025

Three and Six Months Ended July 31, 2025

Common Stock Treasury Stock Additional

Capital Accumulated Other Comprehensive Loss Retained Earnings Total

Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total

Stockholders’

4 unchanged sentences

Stock-based compensation 0 0 0 0 817 0 0 817

Other comprehensive gain, net of tax 0 0 0 0 0 136 0 136

Other comprehensive income, net of tax 0 0 0 0 0 136 0 136

Cash dividends and dividend equivalents declared 0 0 0 0 0 0 ( 406 ) ( 406 )

1 unchanged sentence

Balance at April 30, 2025 1,062 $ 1 ( 104 ) $ ( 22,199 ) $ 65,490 $ ( 130 ) $ 17,504 $ 60,666

Three Months Ended April 30, 2024

Common stock issued 5 0 0 0 427 0 0 427

Common stock withheld related to net share settlement of equity awards 0 0 0 0 ( 12 ) 0 0 ( 12 )

Common stock repurchased 0 0 ( 8 ) ( 2,209 ) 0 0 0 ( 2,209 )

Stock-based compensation 0 0 0 0 796 0 0 796

Other comprehensive income, net of tax 0 0 0 0 0 177 0 177

Cash dividends and dividend equivalents declared 0 0 0 0 0 0 ( 404 ) ( 404 )

Net income 0 0 0 0 0 0 1,887 1,887

Balance at July 31, 2025 1,067 1 ( 112 ) ( 24,408 ) 66,701 47 18,987 61,328

Three and Six Months Ended July 31, 2024

Common Stock Treasury Stock Additional

10 unchanged sentences

Balance at April 30, 2024 1,042 $ 1 ( 71 ) $ ( 13,860 ) $ 60,946 $ ( 270 ) $ 12,866 $ 59,683

Common stock issued 5 0 0 0 384 0 0 384

Common stock repurchased 0 0 ( 18 ) ( 4,322 ) 0 0 0 ( 4,322 )

Stock-based compensation 0 0 0 0 813 0 0 813

Other comprehensive income, net of tax 0 0 0 0 0 34 0 34

Cash dividends declared 0 0 0 0 0 0 ( 388 ) ( 388 )

Net income 0 0 0 0 0 0 1,429 1,429

Balance at July 31, 2024 1,047 1 ( 89 ) ( 18,182 ) 62,143 ( 236 ) 13,907 57,633

See accompanying Notes.

2 unchanged sentences

(in millions)

1 Three Months Ended April 30,

2 Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Operating activities:

21 unchanged sentences

Capital expenditures ( 135 ) ( 137 ) ( 314 ) ( 300 )

Net cash used in investing activities ( 1,567 ) ( 2,651 )

Net cash provided by (used in) investing activities 1,165 2,641 ( 402 ) ( 10 )

Financing activities:

Repurchases of common stock ( 2,225 ) ( 4,335 ) ( 4,858 ) ( 6,468 )

Payments for taxes related to net share settlement of equity awards ( 12 ) 0 ( 12 ) 0

Proceeds from employee stock plans 232 202 526 735

Principal payments on financing obligations ( 99 ) ( 285 ) ( 278 ) ( 405 )

Repayments of debt 0 ( 1,000 ) 0 ( 1,000 )

Payments of dividends and dividend equivalents ( 399 ) ( 384 ) ( 801 ) ( 772 )

1 unchanged sentence

Effect of exchange rate changes 35 ( 7 ) 126 ( 9 )

Net increase in cash and cash equivalents 2,080 1,486

Net increase (decrease) in cash and cash equivalents ( 563 ) ( 2,276 ) 1,517 ( 790 )

Cash and cash equivalents, beginning of period 10,928 9,958 8,848 8,472

6 unchanged sentences

(in millions)

Three Months Ended April 30,

Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Supplemental cash flow disclosure:

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Basis of Presentation

The accompanying condensed consolidated balance sheet as of April 30, 2025 and the condensed consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the three months ended April 30, 2025 and 2024, are unaudited.

The accompanying condensed consolidated balance sheet as of July 31, 2025 and the condensed consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the three and six months ended July 31, 2025 and 2024, are unaudited.

These financial statements have been prepared in accordance with U.S.

3 unchanged sentences

GAAP for complete financial statements.

In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of April 30, 2025 and its results of operations, including its comprehensive income, stockholders' equity and cash flows for the three months ended April 30, 2025 and 2024.

In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of July 31, 2025 and its results of operations, including its comprehensive income, stockholders' equity and cash flows for the three and six months ended July 31, 2025 and 2024.

All adjustments are of a normal recurring nature.

The results for the three months ended April 30, 2025 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2026.

The results for the three and six months ended July 31, 2025 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2026.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2025.

31 unchanged sentences

Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.

No single customer accounted for ten percent or more of accounts receivable as of April 30, 2025 and January 31, 2025.

No single customer accounted for ten percent or more of total revenue during the three months ended April 30, 2025 and 2024.

As of April 30, 2025 and January 31, 2025, assets located outside the Americas were 19 percent and 17 percent of total assets, respectively.

As of April 30, 2025 and January 31, 2025, assets located in the United States were 80 percent and 81 percent of total assets, respectively.

No single customer accounted for ten percent or more of accounts receivable as of July 31, 2025 and January 31, 2025.

No single customer accounted for ten percent or more of total revenue during the three and six months ended July 31, 2025 and 2024.

As of July 31, 2025 and January 31, 2025, assets located outside the Americas were 15 percent and 17 percent of total assets, respectively.

As of July 31, 2025 and January 31, 2025, assets located in the United States were 84 percent and 81 percent of total assets, respectively.

The Company is also exposed to concentrations of risk in its strategic investment portfolio, including within specific industries, as the Company primarily invests in enterprise cloud companies, technology st artups and system integrators.

As of April 30, 2025, the Company held four investments, all privately held, with carrying values that were individually greater than five percent of its total strategic investments portfolio and represented approximately 24 percent o f the portfolio in the aggregate.

As of July 31, 2025, the Company held three investments, all privately held, with carrying values that were individually greater than five percent of its total strategic investments portfolio and represented approximately 18 percent o f the portfolio in the aggregate.

As of January 31, 2025 , the Company held four investments, all privately held, with carrying values that were individually greater than five percent of its strategic investments portfolio and represented approximately 24 percent of the portfolio in the aggregate.

56 unchanged sentences

Amortization of capitalized costs to obtain revenue contracts is included in sales and marketing expense in the accompanying condensed consolidated statements of operations.

There were no impairments of costs to obtain revenue contracts for the three months ended April 30, 2025 and 2024.

There were no impairments of costs to obtain revenue contracts for the three and six months ended July 31, 2025 and 2024.

Cash and Cash Equivalents

6 unchanged sentences

Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses.

Expected credit losses on securities are recognized in other income on the condensed consolidated statements of operations and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive loss in stockholders' equity.

For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method.

23 unchanged sentences

While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties.

The notional amount of outstanding foreign currency derivative contracts as of April 30, 2025 and January 31, 2025 was $ 9.0 billion and $ 10.7 billion, respectively.

The notional amount of outstanding foreign currency derivative contracts as of July 31, 2025 and January 31, 2025 was $ 12.7 billion and $ 10.7 billion, respectively.

Outstanding foreign currency derivative contracts are recorded at fair value on the condensed consolidated balance sheets.

30 unchanged sentences

Such assets are included in property and equipment, net and are amortized over the lease term.

The Company has entered into subleases or has made decisions and taken actions to exit and sublease certain unoccupied leased facilities.

The Company has entered into subleases or has made decisions and taken actions to sublease or discontinue use of certain leased assets.

Similar to other long-lived assets discussed below, management tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.

For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease.

For leased assets, such circumstances would include the decision to discontinue use prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease.

Intangible Assets Acquired through Business Combinations

68 unchanged sentences

Subscription and support revenues consisted of the following (in millions):

Three Months Ended April 30,

Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Sales $ 2,267 $ 2,071 $ 4,398 $ 4,069

6 unchanged sentences

Revenues by geographical region consisted of the following (in millions):

Three Months Ended April 30,

Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Americas $ 6,736 $ 6,201 $ 13,205 $ 12,263

4 unchanged sentences

Americas revenue attributed to the United States was approximately 93 percent during the three

months ended April 30, 2025 and 2024, respectively.

No other country represented more than ten percent of total revenue during the three months ended April 30, 2025 and 2024.

and six months ended July 31, 2025 and 2024, respectively.

No other country represented more than ten percent of total revenue during the three and six months ended July 31, 2025 and 2024.

Contract Balances

1 unchanged sentence

The Company records a contract asset when revenue recognized on a contract exceeds the billings.

Contract assets were $ 836 million as of April 30, 2025 as compared to $ 724 million as of January 31, 2025, and are included in prepaid expenses and other current assets and deferred tax assets and other assets, net on the condensed consolidated balance sheets.

Contract assets were $ 873 million as of July 31, 2025 as compared to $ 724 million as of January 31, 2025, and are included in prepaid expenses and other current assets and deferred tax assets and other assets, net on the condensed consolidated balance sheets.

Unearned Revenue

3 unchanged sentences

The change in unearned revenue was as follows (in millions):

Three Months Ended April 30,

Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Unearned revenue, beginning of period $ 17,799 $ 16,061 $ 20,743 $ 19,003

18 unchanged sentences

Current Noncurrent Total

As of April 30, 2025 $ 29.6 $ 31.3 $ 60.9

As of July 31, 2025 $ 29.4 $ 30.5 $ 59.9

As of January 31, 2025 $ 30.2 $ 33.2 $ 63.4

Marketable Securities

At April 30, 2025, marketable securities consisted of the following (in millions):

At July 31, 2025, marketable securities consisted of the following (in millions):

Cost Unrealized

24 unchanged sentences

The contractual maturities of the investments classified as marketable securities were as follows (in millions):

April 30, 2025 January 31, 2025

July 31, 2025 January 31, 2025

Due within 1 year $ 1,527 $ 2,081

2 unchanged sentences

$ 5,007 $ 5,184

Interest income from marketable securities for the three months ended April 30, 2025 and 2024 was $ 169 million, and $ 196 million, respectively, and is included in other income in the condensed consolidated statements of operations.

Interest income from marketable securities was $ 150 million and $ 181 million for the three months ended July 31, 2025 and 2024, respectively, and $ 319 million and $ 377 million for the six months ended July 31, 2025 and 2024, respectively, and is included in other income in the condensed consolidated statements of operations.

Strategic Investments

Strategic investments by form and measurement category as of April 30, 2025 were as follows (in millions):

Strategic investments by form and measurement category as of July 31, 2025 were as follows (in millions):

Measurement Category

2 unchanged sentences

Other investments 0 0 45 45

Balance as of April 30, 2025

Balance as of July 31, 2025

$ 84 $ 4,775 $ 226 $ 5,085

7 unchanged sentences

The Company holds investments in, or management agreements with, variable interest entities (“VIEs”) which the Company does not consolidate because it is not considered the primary beneficiary of these entities.

The carrying value of VIEs within strategic investments was $ 476 million and $ 484 million, as of April 30, 2025 and January 31, 2025, respectively.

The carrying value of VIEs within strategic investments was $ 571 million and $ 484 million, as of July 31, 2025 and January 31, 2025, respectively.

Gains (losses) on Strategic Investments, Net

The components of gains (losses) on strategic investments, net were as follows (in millions):

1 Three Months Ended April 30,

2 Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Unrealized gains (losses) recognized on publicly traded equity securities, net $ 13 $ ( 22 ) $ ( 3 ) $ ( 19 )

2 unchanged sentences

Unrealized losses, net ( 20 ) ( 38 ) ( 76 ) ( 60 )

Realized gains (losses) on sales of securities, net ( 7 ) 59

Realized gains on sales of securities, net 26 1 19 60

Gains (losses) on strategic investments, net $ 6 $ ( 37 ) $ ( 57 ) $ 0

Unrealized gains and losses recognized on privately held equity securities, net includes upward and downward adjustments from equity securities accounted for under the measurement alternative, as well as gains and losses from private equity securities in other measurement categories.

For privately held securities accounted for under the measurement alternative, the Company recorded upward adjustments of $ 21 million and $ 116 million and impairments and downward adjustments of $ 60 million and $ 139 million for the three months ended April 30, 2025 and 2024 , respectively.

For privately held securities accounted for under the measurement alternative, the Company recorded upward adjustments of $ 13 million and $ 44 million and impairments and downward adjustments of $ 85 million and $ 51 million for the three months ended July 31, 2025 and 2024 , respectively, and upward adjustments of $ 34 million and $ 160 million and impairments of $ 145 million and $ 190 million for the six months ended July 31, 2025 and 2024 , respectively.

Realized gains on sales of securities, net reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

5 unchanged sentences

All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because these assets are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs.

The following table presents information about the Company’s assets that were measured at fair value as of April 30, 2025 and indicates the fair value hierarchy of the valuation (in millions):

The following table presents information about the Company’s assets that were measured at fair value as of July 31, 2025 and indicates the fair value hierarchy of the valuation (in millions):

Description Quoted Prices in

20 unchanged sentences

Total assets $ 5,884 $ 7,294 $ 0 $ 13,178

(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $ 2.4 billion of cash, as of April 30, 2025.

(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $ 2.3 billion of cash, as of July 31, 2025.

The following table presents information about the Company’s assets that were measured at fair value as of January 31, 2025 and indicates the fair value hierarchy of the valuation (in millions):

30 unchanged sentences

When indicators of impairment are observed for privately held equity securities, the Company generally uses the market approach to estimate the fair value of its investment, giving consideration to the latest observable transactions, as well as the investee's current and projected financial performance and other significant inputs and assumptions, including estimated time to exit, selection and analysis of guideline public companies and the rights and obligations of the securities the Company holds.

The Company's privately held equity securities and other investments amounted to $ 4.9 billion and $ 4.8 billion as of April 30, 2025 and January 31, 2025, respectively.

The Company's privately held equity securities and other investments amounted to $ 5.0 billion and $ 4.8 billion as of July 31, 2025 and January 31, 2025, respectively.

Leases and Other Commitments

The Company has leases for corporate offices, data centers and equipment under noncancellable operating and finance leases with various expiration dates.

Total operating lease costs were $ 147 million and $ 158 million for the three months ended April 30, 2025 and 2024, respectively.

Total operating lease costs were $ 149 million and $ 193 million for the three months ended July 31, 2025 and 2024, respectively, and were $ 296 million and $ 351 million for the six months ended July 31, 2025 and 2024, respectively.

Included in operating lease costs are amounts related to restructuring charges, which are discussed in Note 9 “Restructuring.”

As of April 30, 2025, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions):

As of July 31, 2025, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions):

Operating Leases Finance Leases

Fiscal Period:

Remaining nine months of fiscal 2026 $ 502 $ 263

Remaining six months of fiscal 2026 $ 333 $ 170

Fiscal 2027 609 271

7 unchanged sentences

Other Balance Sheet Accounts

Accounts payable, accrued expenses and other liabilities included approximately $ 1.8 billion and $ 2.8 billion of accrued compensation as of April 30, 2025 and January 31, 2025, respectively.

Accounts payable, accrued expenses and other liabilities included approximately $ 1.8 billion and $ 2.8 billion of accrued compensation as of July 31, 2025 and January 31, 2025, respectively.

Business Combinations

Pending Acquisition

Informatica Inc.

In May 2025, the Company entered into a definitive agreement to acquire Informatica Inc.

(“Informatica”), an AI-powered enterprise cloud data management platform.

Under the terms of the agreement, holders of Informatica’s Class A and Class B-1 common stock will receive $ 25 in cash per share and the Company will acquire all outstanding shares of common stock of Informatica that the Company does not already own.

The transaction represents an equity value of approximately $ 8 billion, net of the Company’s current investment in Informatica.

The agreement also provides for the Company’s assumption of unvested equity awards held by Informatica employees.

The Company expects to fund the transaction with a combination of new debt and cash on the Company’s balance sheet.

See Note 8 “Debt” for further information related to new debt.

The transaction is expected to close in the fourth quarter of fiscal 2026 or early fiscal 2027, subject to the receipt of required regulatory clearances and satisfaction of other customary closing conditions.

Stockholders holding in aggregate approximately 63 percent of the voting power of Informatica Class A and Class B-1 common stock have delivered a written consent approving the transaction.

Intangible Assets Acquired Through Business Combinations and Goodwill

3 unchanged sentences

Remaining Useful Life (Years)

January 31, 2025 Additions and retirements, net April 30, 2025 January 31, 2025 Expense and retirements, net April 30, 2025 January 31, 2025 April 30, 2025 April 30, 2025

January 31, 2025 Additions and retirements, net July 31, 2025 January 31, 2025 Expense and retirements, net July 31, 2025 January 31, 2025 July 31, 2025 July 31, 2025

Acquired developed technology $ 2,958 $ 16 $ 2,974 $ ( 1,753 ) $ ( 312 ) $ ( 2,065 ) $ 1,205 $ 909 0.5

3 unchanged sentences

(1) Included in Other are in-place leases, trade names, trademarks and territory rights.

Amortization of intangible assets resulting from business combinations for the three months ended April 30, 2025 and 2024 was $ 395 million and $ 461 million, respectively.

The expected future amortization expense for intangible assets as of April 30, 2025 was as follows (in millions):

Amortization of intangible assets resulting from business combinations for the three months ended July 31, 2025 and 2024 was $ 380 million and $ 454 million, respectively, and for the six months ended July 31, 2025 and 2024 was $ 775 million, and $ 915 million, respectively.

The expected future amortization expense for intangible assets as of July 31, 2025 was as follows (in millions):

Fiscal Period:

Remaining nine months of fiscal 2026 $ 1,134

Remaining six months of fiscal 2026 $ 758

Fiscal 2027 1,148

7 unchanged sentences

Balance as of January 31, 2025 $ 51,283

Adjustments (1) ( 2 )

Balance as of April 30, 2025 $ 51,281

Acquisitions and adjustments (1) 155

Balance as of July 31, 2025 $ 51,438

(1) Includes the effect of foreign currency translation and measurement period adjustments from prior period acquisitions.

The components of the Company's borrowings were as follows (in millions):

Instrument Date of Issuance Maturity Date Contractual Interest Rate Outstanding Principal as of April 30, 2025

Carrying Value as of April 30, 2025 Carrying Value as of January 31, 2025

Instrument Date of Issuance Maturity Date Contractual Interest Rate Outstanding Principal as of July 31, 2025

Carrying Value as of July 31, 2025 Carrying Value as of January 31, 2025

2028 Senior Notes April 2018 April 2028 3.70 % 1,500 1,496 1,496

7 unchanged sentences

Total noncurrent debt $ 8,436 $ 8,433

The Company was in compliance with all debt covenants as of April 30, 2025.

The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $ 6.6 billion as of April 30, 2025 and January 31, 2025 .

The fair value was determined based on the closing trading price per $ 100 of the Senior Notes as of the last day of trading of the first quarter of fiscal 2026 and the last day of trading of fiscal 2025, and are deemed Level 2 liabilities within the fair value measurement framework.

The contractual future principal payments for all borrowings as of April 30, 2025 were as follows (in millions):

The Company was in compliance with all debt covenants as of July 31, 2025.

The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $ 6.7 billion and $ 6.6 billion as of July 31, 2025 and January 31, 2025, respectively .

The fair value was determined based on the closing trading price per $ 100 of the Senior Notes as of the last day of trading of the second quarter of fiscal 2026 and the last day of trading of fiscal 2025, and are deemed Level 2 liabilities within the fair value measurement framework.

The contractual future principal payments for all borrowings as of July 31, 2025 were as follows (in millions):

Fiscal Period:

Remaining nine months of fiscal 2026 $ 0

Remaining six months of fiscal 2026 $ 0

Fiscal 2027 0

4 unchanged sentences

Total principal outstanding $ 8,500

Interest expense primarily from the Company’s debt instruments for the three months ended April 30, 2025 and 2024 was $ 68 million and $ 69 million, respectively, and is included in other income in the condensed consolidated statements of operations.

Interest expense, primarily from the Company’s debt instruments, was $ 67 million and $ 68 million for the three months ended July 31, 2025 and 2024, respectively, and $ 135 million and $ 137 million for the six months ended July 31, 2025 and 2024, respectively, and is included in other income in the condensed consolidated statements of operations.

Revolving Credit Facility

4 unchanged sentences

The Company 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 April 30, 2025.

There were no outstanding borrowings under the Credit Facility as of July 31, 2025.

Informatica-Related Financing

In June 2025, the Company entered into a 364 -Day Credit Agreement that provides the Company with the ability to borrow up to $ 4.0 billion and a three-year Credit Agreement that provides the Company with the ability to borrow up to $ 2.0 billion, both on an unsecured basis, to finance a portion of the cash consideration for the Company’s pending acquisition of Informatica, the repayment of certain debt of Informatica and the payment of fees, costs and expenses related thereto.

The availability and funding of each credit agreement is conditioned on the consummation of the acquisition of Informatica in accordance with the terms of the merger agreement and is subject to certain exceptions, qualifications and certain other conditions.

There were no outstanding borrowings on the Informatica credit agreements as of July 31, 2025.

For more information regarding the acquisition of Informatica, see Note 6 “Business Combinations.”

Restructuring

1 unchanged sentence

The Company continues to evaluate and operationalize future programs to drive further operational efficiencies, optimize its management structure and increase cost optimization efforts to realize long-term sustainable growth.

During the three months ended April 30, 2025 and 2024, the Company recognized $ 36 million and $ 8 million in restructuring charges, respectively, which was substantially related to workforce reductions that include charges for employee transition, severance payments, employee benefits and stock-based compensation.

The Company recognized $ 4 million and $ 99 million in restructuring charges during the three months ended July 31, 2025 and 2024, respectively, and $ 40 million and $ 107 million during the six months ended July 31, 2025 and 2024, respectively, which were substantially related to workforce reductions that include charges for employee transition, severance payments, employee benefits and stock-based compensation.

Stockholders’ Equity

Stock option activity for the three months ended April 30, 2025 was as follows:

Stock option activity for the six months ended July 31, 2025 was as follows:

Options Outstanding

4 unchanged sentences

Exercised ( 1 ) 181.56

Balance as of April 30, 2025 7 $ 204.09 $ 527

Balance as of July 31, 2025 7 $ 205.08 $ 696

Vested or expected to vest 7 $ 204.35 $ 692

Exercisable as of April 30, 2025 6 $ 192.81 $ 441

Restricted stock activity for the three months ended April 30, 2025 was as follows:

Exercisable as of July 31, 2025 6 $ 194.65 $ 598

Restricted stock activity for the six months ended July 31, 2025 was as follows:

Restricted Stock Outstanding

6 unchanged sentences

Vested and converted to shares ( 8 ) 248.36

Balance as of April 30, 2025 30 $ 260.00 $ 8,102

Balance as of July 31, 2025 28 $ 262.84 $ 7,161

Expected to vest 24 $ 6,147

The aggregate expected stock-based compensation expense remaining to be recognized as of April 30, 2025 was as follows (in millions):

The aggregate expected stock-based compensation expense remaining to be recognized as of July 31, 2025 was as follows (in millions):

Fiscal Period:

Remaining nine months of fiscal 2026 $ 2,409

Remaining six months of fiscal 2026 $ 1,701

Fiscal 2027 2,514

3 unchanged sentences

Total stock-based compensation expense $ 7,037

The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of April 30, 2025 and assumes no forfeiture activity and no changes in the expected level of attainment of performance share grants based on the Company’s financial performance relative to certain targets.

The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of July 31, 2025 and assumes no forfeiture activity and no changes in the expected level of attainment of performance share grants based on the Company’s financial performance relative to certain targets.

Share Repurchase Program

7 unchanged sentences

Three months ended April 30, 10 $ 273.42 $ 2,681 7 $ 293.00 $ 2,168

Three months ended July 31, 8 $ 269.96 $ 2,199 18 $ 246.14 $ 4,288

All repurchases were made in open market transactions.

As of April 30, 2025, the Company was authorized to purchase a remaining $ 7.9 billion of its common stock under the Share Repurchase Program.

As of July 31, 2025, the Company was authorized to purchase a remaining $ 5.7 billion of its common stock under the Share Repurchase Program.

In September 2025, the Board authorized an additional $ 20.0 billion in repurchases under the Share Repurchase Program for an aggregate total authorization of $ 50.0 billion.

The Company announced the following dividends:

Record Date Payment Date Dividend per Share Amount

Quarter Ended Record Date Payment Date Dividend per Share Amount

(in millions)

Three months ended April 30, 2025 April 10, 2025 April 24, 2025 $ 0.416 $ 406

Three months ended April 30, 2024 March 14, 2024 April 11, 2024 $ 0.40 $ 388

April 30, 2025 April 10, 2025 April 24, 2025 $ 0.416 $ 406

July 31, 2025 June 18, 2025 July 10, 2025 $ 0.416 $ 404

April 30, 2024 March 14, 2024 April 11, 2024 $ 0.40 $ 388

July 31, 2024 July 9, 2024 July 25, 2024 $ 0.40 $ 388

Effective Tax Rate

The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period.

For the three months ended April 30, 2025, the Company reported a tax provision of $ 433 million on pretax income of $ 2.0 billion, which resulted in an effective tax rate of 22 percent.

For the six months ended July 31, 2025, the Company reported a tax provision of $ 952 million on pretax income of $ 4.4 billion, which resulted in an effective tax rate of 22 percent.

The Company’s effective tax rate differed from the U.S.

statutory rate of 21 percent primarily due to state and local taxes and non-deductible items, partially offset by research and development credits.

For the three months ended April 30, 2024, the Company reported a tax provision of $ 334 million on pretax income of $ 1.9 billion, which resulted in an effective tax rate of 18 percent.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law.

The OBBBA includes significant changes to US corporate tax provisions of the Tax Cuts and Jobs Act.

Notably, it allows an immediate deduction for domestic research and development expenditures, reinstates 100% bonus depreciation, and modifies the international tax framework.

The legislation has multiple effective dates, with certain provisions effective in fiscal 2026 and others in the subsequent years.

The changes had an immaterial impact to the Company’s tax provision for the period ended July 31, 2025.

For the six months ended July 31, 2024, the Company reported a tax provision of $ 742 million on pretax income of $ 3.7 billion, which resulted in an effective tax rate of 20 percent.

The Company’s effective tax rate differed from the U.S.

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A reconciliation of the denominator used in the calculation of basic and diluted net income per share is as follows (in millions):

1 Three Months Ended April 30,

2 Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Net income $ 1,887 $ 1,429 $ 3,428 $ 2,962

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The effects of these potentially outstanding shares were not included in the calculation of diluted net income per share because the effect would have been anti-dilutive (in millions):

Three Months Ended April 30,

Three Months Ended July 31, Six Months Ended July 31,

2025 2024 2025 2024

Employee stock awards 9 13 5 9

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Slack filed a petition for a writ of certiorari with the U.S.

Supreme Court on August

31, 2022, which was granted on December 13, 2022.

Supreme Court on August 31, 2022, which was granted on December 13, 2022.

On June 1, 2023, the Supreme Court issued a unanimous decision vacating the Ninth Circuit’s decision and remanded for further proceedings.

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On February 10, 2025, the Ninth Circuit issued an opinion reversing the district court’s order and instructing the district court to dismiss the complaint with prejudice.

The plaintiff indicated that he intends to file a petition for a writ of certiorari with the U.S.

Supreme Court, which is due July 10, 2025.

On July 10, 2025, the plaintiff filed a petition for a writ of certiorari with the U.S.

Supreme Court.

The state court actions were consolidated in November 2019, and the consolidated action is captioned In re Slack Technologies, Inc.

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The Company has been named as a defendant in a number of state and federal actions relating to the activities of one of its former customers, Website Technologies, LLC (“Website Technologies”), an affiliate of Backpage.com, LLC (“Backpage”).

Plaintiffs in these actions generally allege that they were victims of sex trafficking by individuals who advertised them on backpage.com, a website operated by Backpage, and assert various claims and theories premised on the Company’s provision to Website Technologies of Salesforce CRM Software and related products, which the plaintiffs allege facilitated the operation and growth of Backpage’s business.

and growth of Backpage’s business.

The initial action, filed in the Superior Court of California for the County of San Francisco on behalf of numerous plaintiffs, was dismissed with prejudice under Section 230 of the Communications Decency Act (“Section 230”), and that dismissal was affirmed by the California Court of Appeal in December 2021.

In April 2020, an action was filed on behalf of a single plaintiff in the U.S.

District Court for the Northern District of Illinois.

District Court for the Northern District of Illinois, G.G.

Salesforce, Inc., Case No.

1:20-CV-2335.

The district court granted the Company’s motion to dismiss the action, and the Seventh Circuit Court of Appeals reversed that ruling in August 2023.

The court has scheduled trial in that matter for June 2026.

On June 12, 2025, after discovery had commenced, Plaintiff filed a substantially amended complaint.

On July 9, 2025, the Company filed a motion to dismiss that complaint.

The court has scheduled trial in the Northern District of Illinois matter for June 2026.

Beginning in April 2020, five actions involving six plaintiffs were filed and consolidated in the U.S.

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4:23-CV-01792 (“T.S.”).

In June 2023, the Company moved to dismiss the T.S.

action, and that motion remains pending.

Separately, 19 actions have been filed in Texas state court, which are proceeding in a Texas state court multidistrict litigation in Harris County District Court, captioned In re Jane Doe Cases, MDL 2020-28545.

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In May 2024, the Company moved to dismiss the amended complaint.

In March 2025, the district court granted the motion as to the Texas state law claims and denied the motion as to the federal law claims.

The Company has filed a motion for reconsideration of the latter ruling as it relates to 29 of the 30 plaintiffs, and that motion remains pending.

In March 2025, the district court granted the motion as to the Texas state law claims, dismissed the Texas claims with prejudice, and denied the motion as to the federal law claims.

In September 2024, the district court in A.S.

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In May 2025, the district court granted that motion with leave to amend the complaint.

In June 2023, the Company moved to dismiss the T.S.

action, and that motion remains pending.

Plaintiffs’ counsel in these actions have stated that they represent several hundred additional possible claimants.

Plaintiffs then filed a consolidated amended complaint, and on June 20, 2025, the Company moved to dismiss that complaint.

That motion remains pending.

In June 2025, Plaintiff’s counsel in A.S.

filed six new actions in the Northern District of Illinois on behalf of a total of 244 new Plaintiffs.

On August 26, 2025, the six new actions were consolidated before the Northern District of Illinois judge who is presiding over the G.G.

All of the foregoing actions seek unspecified monetary damages, attorneys’ fees, and costs.

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Subsequent Events

In May 2025, the Company entered into a definitive agreement to acquire Informatica Inc.

(“Informatica”), an AI-powered enterprise cloud data management platform.

The transaction represents an equity value of approximately $ 8 billion, net of the Company’s current investment in Informatica.

The agreement also provides for the Company’s assumption of unvested equity awards held by Informatica employees.

The Company expects to fund the transaction with a combination of new debt and cash on the Company’s balance sheet.

The transaction is expected to close early in fiscal 2027, subject to the receipt of required regulatory clearances and satisfaction of other customary closing conditions.

Stockholders holding in aggregate approximately 63 percent of the voting power of Informatica Class A and Class B-1 common stock have delivered a written consent approving the transaction.

In August 2025, the Company entered into an agreement to acquire Regrello Corp.

(“Regrello”), a developer of an AI-native business process automation solution.

Under the terms of the agreement, the Company will acquire Regrello for approximately $ 900 million in cash, subject to customary purchase price adjustments.

The agreement also provides for the Company’s assumption of unvested outstanding equity awards held by Regrello employees.

The acquisition is expected to close in the third quarter of fiscal 2026, subject to customary closing conditions.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements