What changed in this filing

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Item 1. Financial Statements

2025-12-04 compared with 2025-09-04 · 162 added, 119 removed, 802 unchanged (26% of the section changed)

3 unchanged sentences

(in millions)

July 31, 2025 January 31, 2025

October 31, 2025 January 31, 2025

Assets (unaudited)

38 unchanged sentences

(in millions, except per share data)

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

3 Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

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

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

Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

2 unchanged sentences

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

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

Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

8 unchanged sentences

(in millions)

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

3 Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

Net income $ 2,086 $ 1,527 $ 5,514 $ 4,489

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

Other comprehensive income, net of reclassification adjustments:

Foreign currency translation and other gains (losses) 94 4 384 ( 23 )

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

Other comprehensive income (loss), before tax 177 44 318 ( 9 )

Unrealized gains on marketable securities 16 9 44 27

Other comprehensive income, before tax 110 13 428 4

Tax effect ( 3 ) ( 2 ) ( 8 ) ( 4 )

Other comprehensive income (loss), net 177 34 313 ( 11 )

Other comprehensive income, net 107 11 420 0

Comprehensive income $ 2,193 $ 1,538 $ 5,934 $ 4,489

3 unchanged sentences

(in millions)

Three and Six Months Ended July 31, 2025

Three and Nine Months Ended October 31, 2025

Common Stock Treasury Stock Additional

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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 issued 2 0 0 0 52 0 0 52

Common stock withheld related to net share settlement of equity awards 0 0 0 0 ( 127 ) 0 0 ( 127 )

Common stock repurchased 0 0 ( 15 ) ( 3,847 ) 0 0 0 ( 3,847 )

Stock-based compensation 0 0 0 0 822 0 0 822

Other comprehensive income, net of tax 0 0 0 0 0 107 0 107

Cash dividends and dividend equivalents declared 0 0 0 0 0 0 ( 400 ) ( 400 )

Net income 0 0 0 0 0 0 2,086 2,086

Balance at October 31, 2025 1,069 $ 1 ( 127 ) $ ( 28,255 ) $ 67,448 $ 154 $ 20,673 $ 60,021

Three and Nine Months Ended October 31, 2024

Common Stock Treasury Stock Additional

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

Common stock issued 3 0 0 0 148 0 0 148

Common stock repurchased 0 0 ( 5 ) ( 1,232 ) 0 0 0 ( 1,232 )

Stock-based compensation 0 0 0 0 823 0 0 823

Other comprehensive income, net of tax 0 0 0 0 0 11 0 11

Cash dividends declared 0 0 0 0 0 0 ( 385 ) ( 385 )

Net income 0 0 0 0 0 0 1,527 1,527

Balance at October 31, 2024 1,050 $ 1 ( 94 ) $ ( 19,414 ) $ 63,114 $ ( 225 ) $ 15,049 $ 58,525

See accompanying Notes.

2 unchanged sentences

(in millions)

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

3 Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

41 unchanged sentences

(in millions)

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

Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

17 unchanged sentences

Basis of Presentation

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.

The accompanying condensed consolidated balance sheet as of October 31, 2025 and the condensed consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the three and nine months ended October 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 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.

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 October 31, 2025 and its results of operations, including its comprehensive income, stockholders' equity and cash flows for the three and nine months ended October 31, 2025 and 2024.

All adjustments are of a normal recurring nature.

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.

The results for the three and nine months ended October 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.

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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 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.

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

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

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

As of October 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 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 October 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 32 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.

49 unchanged sentences

Capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force.

Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees and (4) to a lesser extent, success fees paid to partners in emerging markets where the Company has a limited presence.

Capitalized amounts also include other incentive-based compensation such as non-direct sales force payouts, renewal commissions, and associated payroll and benefit costs, and success fees paid to partners.

Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years , which is longer than the typical initial contract period, but reflects the estimated average period of benefit, including expected contract renewals.

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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 and six months ended July 31, 2025 and 2024.

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

Cash and Cash Equivalents

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The Company assesses its privately held strategic investments quarterly for impairment.

The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors,

including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the investee is using its cash.

The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors, including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the

investee is using its cash.

If the investment is considered impaired, the Company estimates the fair value of the investment and recognizes any resulting impairment through the condensed consolidated statements of operations.

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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 July 31, 2025 and January 31, 2025 was $ 12.7 billion and $ 10.7 billion, respectively.

The notional amount of outstanding foreign currency derivative contracts as of October 31, 2025 and January 31, 2025 was $ 13.3 billion and $ 10.7 billion, respectively.

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

17 unchanged sentences

Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement, net of any future tenant incentives.

The Company has lease agreements which contain both lease and non-lease components, which it has elected to combine for all asset classes.

The Company has lease agreements which contain both lease and non-lease

components, which it has elected to combine for all asset classes.

As such, minimum lease payments include fixed payments for non-lease components within a lease agreement but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period.

28 unchanged sentences

Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations.

In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss to settle that relationship as of the acquisition date within operating income on the condensed

consolidated statements of operations.

In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within gains (losses) on strategic investments, net in the condensed consolidated statements of operations.

of the strategic investment is recorded as a gain or loss and recorded within gains (losses) on strategic investments, net in the condensed consolidated statements of operations.

Restructuring

37 unchanged sentences

New Accounting Pronouncements Pending Adoption

In December 2023, the FASB issued Accounting Standards Update No.

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No.

2023-09, “Income Taxes (Topic 740):

7 unchanged sentences

The Company is evaluating the effect that ASU 2024-03 will have on its financial statement disclosures.

In September 2025, the FASB issued Accounting Standards Update 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025-06”), which provides targeted improvements to the accounting for internal-use software costs by replacing the existing project-stage model with a principles-based approach to determine when capitalization of costs should begin.

ASU 2025-06 is effective for all entities for annual reporting periods beginning after December 15, 2027 on a prospective basis, with early adoption permitted.

The Company is currently evaluating the effect that ASU 2025-06 will have on its financial statement disclosures.

Disaggregation of Revenue

1 unchanged sentence

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

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

Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

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

Service 2,458 2,257 4,792 4,439

Platform and Other 2,084 1,786 4,047 3,504

Marketing and Commerce 1,365 1,308 2,690 2,590

Integration and Analytics 1,516 1,342 3,060 2,747

Agentforce Sales $ 2,297 $ 2,119 $ 6,695 $ 6,188

Agentforce Service 2,495 2,288 7,287 6,727

Agentforce 360 Platform, Slack and Other 2,180 1,825 6,227 5,329

Agentforce Marketing and Agentforce Commerce 1,361 1,334 4,051 3,924

Agentforce Integration and Agentforce Analytics 1,393 1,313 4,453 4,060

$ 9,726 $ 8,879 $ 28,713 $ 26,228

(1) In the third quarter of fiscal 2026, the Company renamed its service offerings to reference Agentforce.

There were no changes in the allocation of revenue between these service offerings coming from this change.

Total Revenue by Geographic Locations

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

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

Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

4 unchanged sentences

Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer.

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

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.

Americas revenue attributed to the United States was approximately 93 percent during the three and nine months ended October 31, 2025 and 2024, respectively.

No other country represented more than ten percent of total revenue during the three and nine months ended October 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 $ 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.

Contract assets were $ 976 million as of October 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 July 31, Six Months Ended July 31,

Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

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Current Noncurrent Total

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

As of October 31, 2025 $ 29.4 $ 30.1 $ 59.5

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

Marketable Securities

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

As of October 31, 2025, marketable securities consisted of the following (in millions):

Cost Unrealized

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Total marketable securities $ 2,331 $ 15 $ ( 1 ) $ 2,345

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

As of January 31, 2025, marketable securities consisted of the following (in millions):

Cost Unrealized

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

July 31, 2025 January 31, 2025

October 31, 2025 January 31, 2025

Due within 1 year $ 462 $ 2,081

2 unchanged sentences

$ 2,345 $ 5,184

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.

Interest income from marketable securities was $ 139 million and $ 145 million for the three months ended October 31, 2025 and 2024, respectively, and $ 457 million and $ 522 million for the nine months ended October 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 July 31, 2025 were as follows (in millions):

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

Measurement Category

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Other investments 0 0 44 44

Balance as of July 31, 2025

Balance as of October 31, 2025

$ 68 $ 6,120 $ 222 $ 6,410

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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 $ 571 million and $ 484 million, as of July 31, 2025 and January 31, 2025, respectively.

The carrying value of VIEs within strategic investments was $ 281 million and $ 484 million, as of October 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):

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

3 Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

2 unchanged sentences

Impairments on privately held equity securities and other investments ( 169 ) ( 242 ) ( 302 ) ( 432 )

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

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

Unrealized gains (losses), net 259 ( 216 ) 183 ( 276 )

Realized gains (losses) on sales of securities, net 4 ( 1 ) 23 59

Gains (losses) on strategic investments, net $ 263 $ ( 217 ) $ 206 $ ( 217 )

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 $ 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.

For privately held securities accounted for under the measurement alternative, the Company recorded upward adjustments of $ 456 million and $ 22 million and impairments and downward adjustments of $ 190 million and $ 245 million for the three months ended October 31, 2025 and 2024 , respectively, and upward adjustments of $ 490 million and $ 182 million and impairments and downward adjustments of $ 335 million and $ 435 million for the nine months ended October 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.

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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 July 31, 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 October 31, 2025 and indicates the fair value hierarchy of the valuation (in millions):

Description Quoted Prices in

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Total assets $ 5,660 $ 4,165 $ 0 $ 9,825

(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.

(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $ 1.6 billion of cash, as of October 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):

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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 $ 5.0 billion and $ 4.8 billion as of July 31, 2025 and January 31, 2025, respectively.

The Company's privately held equity securities and other investments amounted to $ 6.3 billion and $ 4.8 billion as of October 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 $ 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.

Total operating lease costs were $ 163 million and $ 162 million for the three months ended October 31, 2025 and 2024, respectively, and were $ 459 million and $ 513 million for the nine months ended October 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 July 31, 2025, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions):

As of October 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 six months of fiscal 2026 $ 333 $ 170

Remaining three months of fiscal 2026 $ 156 $ 76

Fiscal 2027 616 270

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Total $ 2,702 $ 496

The total lease commitment balance, including leases not yet commenced, is $ 4.4 billion, of which approximately $ 3.9 billion is related to facilities space.

The remaining commitment amount is primarily related to equipment.

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 July 31, 2025 and January 31, 2025, respectively.

Accounts payable, accrued expenses and other liabilities included approximately $ 2.2 billion and $ 2.8 billion of accrued compensation as of October 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.

Regrello Corp.

In October 2025, the Company acquired all of the outstanding stock of Regrello Corp.

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

The acquisition date fair value of the consideration transferred for Regrello was $ 818 million, which consisted primarily of $ 815 million in cash.

The Company recorded $ 704 million of goodwill in its condensed consolidated balance sheets which is primarily attributed to Regrello’s assembled workforce and expanded market opportunities.

The goodwill associated with the acquisition of Regrello has no tax basis and is not deductible for U.S.

income tax purposes.

The Company also recorded approximately $ 140 million of intangible assets in its condensed consolidated balance sheets for developed technology with a useful life of four years .

The fair values assigned to assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized.

The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.

The Company has included the financial results of Regrello, which were not material, in its consolidated financial statements from the date of acquisition.

The transaction costs associated with the acquisition were not material.

Intangible Assets Acquired Through Business Combinations and Goodwill

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Remaining Useful Life (Years)

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

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

Acquired developed technology $ 2,958 $ 224 $ 3,182 $ ( 1,753 ) $ ( 467 ) $ ( 2,220 ) $ 1,205 $ 962 1.0

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(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 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):

Amortization of intangible assets resulting from business combinations for the three months ended October 31, 2025 and 2024 was $ 386 million and $ 354 million, respectively, and for the nine months ended October 31, 2025 and 2024 was $ 1.2 billion, and $ 1.3 billion, respectively.

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

Fiscal Period:

Remaining six months of fiscal 2026 $ 758

Remaining three months of fiscal 2026 $ 393

Fiscal 2027 1,205

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Balance as of January 31, 2025 $ 51,283

Acquisitions and adjustments (1) 155

Balance as of July 31, 2025 $ 51,438

Acquisition of Regrello 704

Other acquisitions and adjustments (1) 470

Balance as of October 31, 2025 $ 52,457

(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 July 31, 2025

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

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

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

2028 Senior Notes April 2018 April 2028 3.70 % 1,500 1,497 1,496

7 unchanged sentences

Total noncurrent debt $ 8,438 $ 8,433

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):

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

The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $ 6.8 billion and $ 6.6 billion as of October 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 third 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 October 31, 2025 were as follows (in millions):

Fiscal Period:

Remaining six months of fiscal 2026 $ 0

Remaining three 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, 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.

Interest expense, primarily from the Company’s debt instruments, was $ 67 million for the three months ended October 31, 2025 and 2024, respectively, and $ 202 million and $ 204 million for the nine months ended October 31, 2025 and 2024, respectively, and is included in other income in the condensed consolidated statements of operations.

Revolving Credit Facility

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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 July 31, 2025.

There were no outstanding borrowings under the Credit Facility as of October 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.

(“Informatica”), the repayment of certain debt of Informatica and the payment of fees, costs and expenses related thereto (collectively, the “Informatica Credit Agreements”).

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.”

There were no outstanding borrowings on the Informatica Credit Agreements as of October 31, 2025.

For more information regarding the acquisition of Informatica, see Note 14 “Subsequent Events.”

Restructuring

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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.

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.

The Company recognized $ 260 million and $ 56 million in restructuring charges during the three months ended October 31, 2025 and 2024, respectively, and $ 300 million and $ 163 million during the nine months ended October 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 six months ended July 31, 2025 was as follows:

Stock option activity for the nine months ended October 31, 2025 was as follows:

Options Outstanding

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Exercised ( 1 ) 178.45

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

Balance as of October 31, 2025 7 $ 204.59 $ 674

Vested or expected to vest 7 $ 204.10 $ 669

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

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

Exercisable as of October 31, 2025 6 $ 196.88 $ 583

Restricted stock activity for the nine months ended October 31, 2025 was as follows:

Restricted Stock Outstanding

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Vested and converted to shares ( 10 ) 245.31

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

Balance as of October 31, 2025 26 $ 264.85 $ 6,742

Expected to vest 22 $ 5,857

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

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

Fiscal Period:

Remaining six months of fiscal 2026 $ 1,701

Remaining three months of fiscal 2026 $ 957

Fiscal 2027 2,514

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Total stock-based compensation expense $ 6,406

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.

The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of October 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

The Company’s Board of Directors (the “Board”) authorized a program to repurchase shares of the Company's common stock (the "Share Repurchase Program"), which commenced in August 2022 and had additional authorizations approved by the Board in February 2023 and February 2024, for an aggregate total authorization of $ 30.0 billion.

The Company’s Board of Directors (the “Board”) authorized a program to repurchase shares of the Company's common stock (the "Share Repurchase Program"), which commenced in August 2022.

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 Share Repurchase Program does not have a fixed expiration date and does not obligate the Company to acquire any specific number of shares.

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

Three months ended October 31, 15 $ 246.33 $ 3,814 5 $ 257.00 $ 1,228

All repurchases were made in open market transactions.

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.

As of October 31, 2025, the Company was authorized to purchase a remaining $ 21.9 billion of its common stock under the Share Repurchase Program.

The Company announced the following dividends:

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

October 31, 2025 September 17, 2025 October 9, 2025 $ 0.416 $ 400

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

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

October 31, 2024 September 18, 2024 October 8, 2024 $ 0.40 $ 385

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 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.

For the nine months ended October 31, 2025, the Company reported a tax provision of $ 1.4 billion on pretax income of $ 6.9 billion, which resulted in an effective tax rate of 20 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.

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

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

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

For the nine months ended October 31, 2024, the Company reported a tax provision of $ 961 million on pretax income of $ 5.5 billion, which resulted in an effective tax rate of 18 percent.

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

statutory rate of 21 percent primarily due to research and development credits and excess tax benefits from stock-based compensation.

statutory rate of 21 percent primarily due to research and development credits, the foreign-derived intangible income deduction, and excess tax benefits from stock-based compensation.

Unrecognized Tax Benefits and Other Considerations

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As the outcome of the tax audits cannot be predicted with certainty, if any issues addressed in the Company’s tax audits are resolved in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future.

The Company anticipates it is reasonably possible that an insignificant decrease of its unrecognized tax benefits may occur in the next 12 months, as the applicable statutes of limitations lapse, ongoing examinations are completed, or tax positions meet the conditions of being effectively settled.

The Company does not anticipate a significant change to its unrecognized tax benefits in the next 12 months.

Net Income Per Share

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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):

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

3 Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

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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 July 31, Six Months Ended July 31,

Three Months Ended October 31, Nine Months Ended October 31,

2025 2024 2025 2024

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

Supreme Court.

Supreme Court, which was denied on October 6, 2025.

On November 4, 2025, the defendants requested that the district court enter judgment against the plaintiff in the Federal Action.

On November 10, 2025, the court entered judgment for defendants and against the plaintiff, which marks the conclusion of the Federal Action.

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

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On October 26, 2022, the court stayed the State Court Action pending resolution of Slack’s petition for a writ of certiorari in the Federal Action.

The State Court Action remains stayed pending resolution of the appellate proceedings in the Federal Action.

The Federal Action and the State Court Action seek unspecified monetary damages and other relief on behalf of investors who purchased Slack’s Class A common stock issued pursuant and/or traceable to the Registration Statement.

On November 7, 2025, the court lifted the stay in the State Court Action solely to permit plaintiffs to take certain discovery and to file a renewed motion for class certification, if they choose to do so.

The State Court Action seek unspecified monetary damages and other relief on behalf of investors who purchased Slack’s Class A common stock issued pursuant and/or traceable to the Registration Statement.

Backpage Litigation

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

On July 14, 2025, Plaintiff’s counsel in G.G.

filed a new action in the Southern District of Texas, C.S.

Salesforce, Inc., Case No.

25-CV-00189 (“C.S.”).

On September 29, 2025, the Company filed a motion to dismiss the C.S.

That motion remains pending.

Beginning in early August 2025, the Company filed motions in each of the pending federal cases for a stay of proceedings pending the completion of ongoing criminal proceedings involving Backpage.

On October 21, 2025, the court in the A.S.

actions granted the Company’s motions to stay those actions, and on October 28, 2025, the court in A.B.

similarly granted the Company’s stay motion.

On November 7, 2025, Plaintiffs’ counsel in A.S., S.M.A., and A.B.

moved for reconsideration of the stay rulings.

The motions for reconsideration remain pending, and the stay motions in the other federal actions also remain pending.

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

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Subsequent Events

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.

Informatica Inc.

In November 2025, the Company acquired all outstanding stock of Informatica, an AI-powered enterprise cloud data management platform.

The preliminary acquisition date fair value of the consideration transferred for Informatica is estimated to be approximately $ 9.6 billion, comprised primarily of $9.5 billion in cash.

The cash portion included the full $ 6.0 billion available under the credit facilities associated with the Informatica Credit Agreements (see Note 8 “Debt”).

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