Salesforce, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Salesforce, Inc. Condensed Consolidated Balance Sheets (in millions) April 30, 2026 January 31, 2026 Assets (unaudited) Current assets: Cash and cash equivalents $ 8,935 $ 7,327 Marketable securities 2,902 2,238 Accounts receivable, net 5,080 14,339 Costs capitalized to obtain revenue contracts, net 2,065 2,075 Prepaid expenses and other current assets 2,631 2,243 Total current assets 21,613 28,222 Property and equipment, net 3,150 3,120 Operating lease right-of-use assets, net 1,889 2,003 Noncurrent costs capitalized to obtain revenue contracts, net 2,920 2,985 Strategic investments 7,772 7,591 Goodwill 59,291 57,941 Intangible assets acquired through business combinations, net 6,650 6,815 Deferred tax assets and other assets, net 3,395 3,628 Total assets $ 106,680 $ 112,305 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued expenses and other liabilities $ 6,582 $ 8,253 Operating lease liabilities, current 557 548 Unearned revenue 20,363 24,317 Debt, current 0 4,000 Total current liabilities 27,502 37,118 Noncurrent debt 39,280 10,439 Noncurrent operating lease liabilities 2,047 2,189 Other noncurrent liabilities 3,616 3,417 Total liabilities 72,445 53,163 Stockholders’ equity: Common stock 1 1 Treasury stock, at cost ( 55,028 ) ( 32,228 ) Additional paid-in capital 64,913 68,835 Accumulated other comprehensive income 395 313 Retained earnings 23,954 22,221 Total stockholders’ equity 34,235 59,142 Total liabilities and stockholders’ equity $ 106,680 $ 112,305 See accompanying Notes. 3 Table of Contents Salesforce, Inc. Condensed Consolidated Statements of Operations (in millions, except per share data) (unaudited) 1 Three Months Ended April 30, 2026 2025 Revenues: Subscription and support $ 10,593 $ 9,297 Professional services and other 540 532 Total revenues 11,133 9,829 Cost of revenues (1)(2): Subscription and support 1,953 1,611 Professional services and other 617 654 Total cost of revenues 2,570 2,265 Gross profit 8,563 7,564 Operating expenses (1)(2): Research and development 1,627 1,460 Sales and marketing 3,769 3,429 General and administrative 740 697 Restructuring 80 36 Total operating expenses 6,216 5,622 Income from operations 2,347 1,942 Interest expense ( 317 ) ( 68 ) Gains (losses) on strategic investments, net 558 ( 63 ) Other income 133 163 Income before provision for income taxes 2,721 1,974 Provision for income taxes ( 614 ) ( 433 ) Net income $ 2,107 $ 1,541 Basic net income per share $ 2.43 $ 1.61 Diluted net income per share $ 2.42 $ 1.59 Shares used in computing basic net income per share 868 960 Shares used in computing diluted net income per share 871 970 (1) Amounts include amortization of intangible assets acquired through business combinations, as follows: Three Months Ended April 30, 2026 2025 Cost of revenues $ 244 $ 162 Sales and marketing 317 233 (2) Amounts include stock-based compensation expense, as follows: Three Months Ended April 30, 2026 2025 Cost of revenues $ 138 $ 151 Research and development 310 275 Sales and marketing 320 285 General and administrative 102 88 Restructuring 10 15 See accompanying Notes. 4 Table of Contents Salesforce, Inc. Condensed Consolidated Statements of Comprehensive Income (in millions) (unaudited) 1 Three Months Ended April 30, 2026 2025 Net income $ 2,107 $ 1,541 Other comprehensive income, net of reclassification adjustments: Foreign currency translation and other gains (losses) 72 110 Unrealized gains (losses) on marketable securities ( 15 ) 31 Cash flow hedges: Changes in net unrealized gains (losses) 31 0 Reclassification adjustment for net (gains) losses included in net income ( 3 ) 0 Other comprehensive income, before tax 85 141 Tax effect ( 3 ) ( 5 ) Other comprehensive income, net 82 136 Comprehensive income $ 2,189 $ 1,677 See accompanying Notes. 5 Table of Contents Salesforce, Inc. Condensed Consolidated Statements of Stockholders’ Equity (in millions) (unaudited) Three Months Ended April 30, 2026 Common Stock Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Stockholders’ Equity Shares Amount Shares Amount Balance at January 31, 2026 1,073 $ 1 ( 144 ) $ ( 32,228 ) $ 68,835 $ 313 $ 22,221 $ 59,142 Common stock issued 4 0 0 0 35 0 0 35 Common stock withheld related to net share settlement of equity awards 0 0 0 0 ( 250 ) 0 0 ( 250 ) Common stock repurchased 0 0 ( 114 ) ( 22,800 ) ( 4,566 ) 0 0 ( 27,366 ) Stock-based compensation 0 0 0 0 859 0 0 859 Other comprehensive income, net of tax 0 0 0 0 0 82 0 82 Cash dividends and dividend equivalents declared 0 0 0 0 0 0 ( 374 ) ( 374 ) Net income 0 0 0 0 0 0 2,107 2,107 Balance at April 30, 2026 1,077 $ 1 ( 258 ) $ ( 55,028 ) $ 64,913 $ 395 $ 23,954 $ 34,235 Three Months Ended April 30, 2025 Common Stock Treasury Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Stockholders’ Equity Shares Amount Shares Amount Balance at January 31, 2025 1,056 $ 1 ( 94 ) $ ( 19,507 ) $ 64,576 $ ( 266 ) $ 16,369 $ 61,173 Common stock issued 6 0 0 0 97 0 0 97 Common stock repurchased 0 0 ( 10 ) ( 2,692 ) 0 0 0 ( 2,692 ) Stock-based compensation 0 0 0 0 817 0 0 817 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 ) Net income 0 0 0 0 0 0 1,541 1,541 Balance at April 30, 2025 1,062 $ 1 ( 104 ) $ ( 22,199 ) $ 65,490 $ ( 130 ) $ 17,504 $ 60,666 See accompanying Notes. 6 Table of Contents Salesforce, Inc. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) 1 Three Months Ended April 30, 2026 2025 Operating activities: Net income $ 2,107 $ 1,541 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization (1) 985 843 Amortization of costs capitalized to obtain revenue contracts, net 584 545 Stock-based compensation expense 857 814 (Gains) losses on strategic investments, net ( 558 ) 63 Changes in assets and liabilities, net of business combinations: Accounts receivable, net 9,431 7,591 Costs capitalized to obtain revenue contracts, net ( 509 ) ( 365 ) Prepaid expenses and other current assets and other assets ( 162 ) ( 481 ) Accounts payable and accrued expenses and other liabilities ( 1,897 ) ( 1,007 ) Operating lease liabilities ( 138 ) ( 124 ) Unearned revenue ( 3,999 ) ( 2,944 ) Net cash provided by operating activities 6,701 6,476 Investing activities: Business combinations, net of cash acquired ( 1,452 ) 0 Purchases of strategic investments ( 325 ) ( 149 ) Sales of strategic investments 415 6 Purchases of marketable securities ( 1,089 ) ( 2,086 ) Sales of marketable securities 352 405 Maturities of marketable securities 61 436 Capital expenditures ( 145 ) ( 179 ) Net cash used in investing activities ( 2,183 ) ( 1,567 ) Financing activities: Proceeds from issuance of debt, net of issuance costs 24,842 0 Repurchases of common stock ( 27,248 ) ( 2,633 ) Payments for taxes related to net share settlement of equity awards ( 250 ) 0 Proceeds from employee stock plans 230 294 Principal payments on financing obligations ( 130 ) ( 179 ) Payments of dividends and dividend equivalents ( 365 ) ( 402 ) Net cash used in financing activities ( 2,921 ) ( 2,920 ) Effect of exchange rate changes 11 91 Net increase in cash and cash equivalents 1,608 2,080 Cash and cash equivalents, beginning of period 7,327 8,848 Cash and cash equivalents, end of period $ 8,935 $ 10,928 (1) Includes amortization of intangible assets acquired through business combinations, depreciation and impairment of fixed assets and amortization and impairment of right-of-use assets. See accompanying Notes. 7 Table of Contents Salesforce, Inc. Condensed Consolidated Statements of Cash Flows Supplemental Cash Flow Disclosure (in millions) (unaudited) Three Months Ended April 30, 2026 2025 Supplemental cash flow disclosure: Cash paid during the period for: Interest $ 87 $ 28 Income taxes, net of tax refunds $ 239 $ 99 See accompanying Notes. 8 Table of Contents Salesforce, Inc. Notes to Condensed Consolidated Financial Statements 1. Summary of Business and Significant Accounting Policies Description of Business Salesforce, Inc. (the “Company”) is a global leader in customer relationship management technology that brings companies and customers together. With the deeply unified Agentforce 360 Platform, the Company delivers a single source of truth, connecting customer data with integrated artificial intelligence (“AI”) across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. The Company offers Agentforce, a layer of the trusted Agentforce 360 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. Since its founding in 1999, the Company has enabled companies of every size and industry to transform their businesses in the digital-first world, pioneering innovations in cloud, mobile, social, analytics and AI. Fiscal Year The Company’s fiscal year ends on January 31. References to fiscal 2027, for example, refer to the fiscal year ending January 31, 2027. Basis of Presentation The accompanying condensed consolidated balance sheet as of April 30, 2026 and the condensed consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the three months ended April 30, 2026 and 2025 are unaudited. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. 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, 2026 and its results of operations, including its comprehensive income, stockholders' equity and cash flows for the three months ended April 30, 2026 and 2025. All adjustments are of a normal recurring nature. The results for the three months ended April 30, 2026 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2027. 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, 2026, filed with the Securities and Exchange Commission (the “SEC”) on March 2, 2026. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto. Significant estimates and assumptions made by management include the determination of: • the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; • the valuation of privately-held strategic investments; • the fair value of assets acquired and liabilities assumed for business combinations; • the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions; • the useful lives of intangible assets; and • the fair value of certain stock awards issued. Actual results could differ materially from these estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, which forms the basis for making judgments about the carrying values of assets and liabilities as well as income and expenses to be recognized. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. 9 Table of Contents Segments The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the Company’s chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions which have allowed the Company to expand its offerings, presence and reach in various market segments. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's service offerings operate on the Agentforce 360 Platform and are deployed in a nearly identical manner. Additionally, the Company’s CODM, evaluates the Company’s financial information and resources, and assesses the performance of these resources, on a consolidated net income basis. The measure of segment assets is also reported on the condensed consolidated balance sheet as total consolidated assets. The Company’s significant segment expenses, which are the expenses included in operating income as well as gains (losses) on strategic investments, and other segment items, which includes other income and provision for income taxes, are included in the Company’s condensed consolidated statement of operations. Additionally, further components of the Company’s measure of profit or loss, which is consolidated net income, are included throughout the Company’s financial statements. Concentrations of Credit Risk, Significant Customers and Investments The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company’s marketable securities portfolio consists primarily of investment-grade securities and the Company’s policies limit the amount of credit exposure to any one issuer. The Company does not require collateral for accounts receivable. The Company maintains an allowance for estimated credit losses for its accounts receivable balances. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. The Company records the allowance against bad debt expense through the condensed consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the condensed consolidated balance sheets. 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, 2026 and January 31, 2026. No single customer accounted for ten percent or more of total revenue during the three months ended April 30, 2026 and 2025. As of April 30, 2026 and January 31, 2026, assets located outside the Americas were 16 percent of total assets. As of April 30, 2026 and January 31, 2026, assets located in the United States were 82 percent of total assets. 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 technology and artificial intelligence companies, as well as system integrators. As of April 30, 2026 and January 31, 2026 , two of the Company’s privately held investments had carrying values that were individually greater than five percent of its total strategic investments portfolio and represented approximately 37 percent and 35 percent o f the portfolio in the aggregate, respectively. Revenue Recognition The Company derives its revenues from two sources: (1) subscription and support revenues and (2) professional services and other revenues. Subscription and support revenues primarily include subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term software licenses and support revenues from the sales of support and updates beyond the basic subscription or software license sales. Professional services and other revenues include professional and advisory services for process mapping, project management and implementation services and training services. Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur. The Company determines the amount of revenue to be recognized through the application of the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; 10 Table of Contents • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when or as the Company satisfies the performance obligations. Subscription and Support Revenues Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement. Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Substantially all of the Company’s subscription service arrangements are noncancellable and do not contain refund-type provisions. 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 software support and updates is recognized as the support and updates are provided, which is generally ratably over the contract term. The Company typically invoices its customers annually and its payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred. Professional Services and Other Revenues The Company’s professional services contracts are either on a time and materials, fixed price or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Other revenues consist primarily of training revenues recognized as such services are performed. Significant Judgments - Contracts with Multiple Performance Obligations The Company enters into contracts with its customers that may include promises to transfer multiple performance obligations such as Cloud Services, software licenses, support and updates and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are concluded to be distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment. Cloud Services, software licenses and support and updates services are generally concluded to be distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations are distinct. The Company allocates the transaction price to each performance obligation on a relative SSP basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, the Company's go-to-market strategy, historical and current sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company maximizes the use of observable inputs by using information that may include market conditions. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP. In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when indicated by the distribution of its observable prices. Alternatively, the Company uses a range of amounts to estimate SSP when the pricing practices or distribution of the observable prices are highly variable. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography. 11 Table of Contents Costs Capitalized to Obtain Revenue Contracts The Company capitalizes incremental costs of obtaining revenue contracts related to noncancellable Cloud Services subscription, ongoing Cloud Services support and license support and updates. For contracts with term software licenses where revenue is recognized upfront when the software is made available to the customer, costs allocable to those licenses are expensed as they are incurred. Capitalized amounts consist primarily of sales commissions paid to the Company’s sales force on new and renewal contracts, as well as the associated payroll and benefit costs. 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. In arriving at this average period of benefit, the Company evaluates both qualitative and quantitative factors which include the estimated life cycles of its offerings and customer attrition. The Company amortizes capitalized costs for renewals over two years based on similar considerations. The capitalized amounts are recoverable through future revenue streams under all noncancellable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. 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, 2026 and 2025. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value. Marketable Securities The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the condensed consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. 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 income 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. Interest on securities classified as available for sale is included as a component of investment income within other income on the condensed consolidated statements of operations. Strategic Investments The Company holds strategic investments in publicly held equity securities, privately held equity securities and other investments in which the Company does not have a controlling interest. Privately held equity securities where the Company lacks a controlling financial interest but does exercise significant influence are accounted for under the equity method. Privately held equity securities not accounted for under the equity method are recorded at cost and adjusted only for observable transactions for same or similar investments of the same issuer or impairment events (referred to as the measurement alternative). All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations. Other privately held investments not classified as debt or equity securities are recorded at cost and adjusted for impairment events, with any associated gains and losses recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations. Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. 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. 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. 12 Table of Contents Publicly held equity securities are measured at fair value with changes recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations. Fair Value Measurement The Company measures its cash and cash equivalents, marketable securities, publicly held equity securities and foreign currency derivative contracts at fair value. In addition, the Company measures certain of its strategic investments, including its privately held equity securities, at fair value on a nonrecurring basis when there has been an observable price change in a same or similar security or an impairment event. The additional disclosures regarding the Company’s fair value measurements are included in Note 4 “Fair Value Measurement.” Derivative Financial Instruments The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk associated with forecasted revenues, intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of its subsidiaries. Beginning in the first quarter of fiscal 2027, the Company began to designate certain forward derivative contracts as hedging instruments in order to minimize the impact of foreign currency volatility on revenues denominated in Euro and Japanese Yen. The Company also uses forward currency derivative contracts, which are not designated as hedging instruments, to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Canadian Dollar, Australian Dollar, Brazilian Real and Japanese Yen. The Company’s derivative financial instruments program is not conducted for trading or speculative purposes. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivatives, which permit net settlement of transactions with the same counterparty, thereby reducing risk of credit-related losses from a financial institution’s nonperformance. 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. All derivative instruments are recorded at fair value on the condensed consolidated balance sheet. For foreign currency derivatives designated as cash flow hedges, gains or losses resulting from changes in fair value or net settlement are reported as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the period(s) the forecasted transactions affect earnings. The notional amount of outstanding foreign currency derivative contracts designated as cash flow hedges as of April 30, 2026 was $ 1.4 billion. For non-designated foreign currency derivatives, gains or losses resulting from changes in fair value or net settlement are recognized as other income in the condensed consolidated statements of operations consistent with the offsetting gains or losses resulting from the remeasurement or settlement of the underlying foreign currency denominated balances. The notional amount of outstanding foreign currency derivative contracts not designated as cash flow hedges as of April 30, 2026 and January 31, 2026 was $ 17.8 billion and $ 11.9 billion, respectively. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows: Buildings and building improvements 10 to 40 years Computers, equipment and software 3 to 5 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated lease term or 10 years The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. Leases The Company has entered into operating and finance leases for corporate offices, data centers, and equipment. The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s condensed consolidated balance sheets. Assets (also referred to as ROU assets) and liabilities recognized from finance leases are included in property and equipment, accrued expenses and other liabilities and other noncurrent liabilities, respectively, on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for 13 Table of Contents the lease term. The corresponding lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for any asset classes. 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. 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. The Company’s lease terms may include options to extend or terminate the lease. Periods beyond the noncancellable term of the lease are included in the measurement of the lease liability only when it is reasonably certain that the Company will exercise the associated extension option or waive the termination option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company. As most of the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is an estimate of the interest rate the Company would have to pay to borrow on a collateralized basis with similar terms and payments, in the economic environment where the leased asset is located. The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred or tenant incentives received prior to commencement. Lease expense for operating leases, which includes amortization expense of ROU assets, is recognized on a straight-line basis over the lease term. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term and interest expense for finance lease liabilities is recognized based on the incremental borrowing rate. Expense for variable lease payments is recognized as incurred. On the lease commencement date, the Company also establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. 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 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 discontinue use prior to the end of the minimum lease term or subleases, in the case of office space, for which estimated cash flows do not fully cover the costs of the associated lease. Intangible Assets Acquired through Business Combinations Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Impairment Assessment The Company evaluates intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, including, but not limited to, significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset group to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. The Company evaluates and tests the recoverability of its goodwill for impairment annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable. Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. 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. 14 Table of Contents 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. Restructuring The Company generally recognizes employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region where an employee works. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs, including data center exits and office space reductions, are recognized as incurred once management approval is obtained and operations have ceased. Stock-Based Compensation Expense Stock-based compensation expense is measured based on grant date at fair value using the grant date closing stock price for restricted stock units and restricted stock awards and using the Black-Scholes option pricing model for stock options and shares issued pursuant to the Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP”). The Company recognizes stock-based compensation expense related to restricted stock units, restricted stock awards, stock options and shares issued pursuant to the ESPP on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years for restricted stock units, restricted stock awards, and stock options, and the 12-month offering period for shares issued pursuant to the ESPP. The estimated forfeiture rate applied is based on historical forfeiture rates. The Company grants performance-based restricted stock units and performance-based stock options to executive officers and other members of senior management, which include awards with service and market conditions and awards with service and performance conditions. Stock-based compensation expense related to awards with a market condition are measured at fair value using a Monte Carlo simulation model and the expense related to these awards is recognized on a graded-vesting basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term. Stock-based compensation expense related to awards with a performance condition are measured based on the grant date closing stock price and the expense related to these awards is recognized based on the requisite service period elapsed, as well as the probability of achievement and estimated attainment of the performance condition as of the end of our reporting period. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the condensed consolidated statements of operations in the period that includes the enactment date. The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed. Foreign Currency Translation The functional currency of the Company’s major foreign subsidiaries is generally the local currency. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using 15 Table of Contents historical exchange rates. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the condensed consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in other income in the condensed consolidated statements of operations. Warranties and Indemnification The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe on a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying condensed consolidated financial statements. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. New Accounting Pronouncements Pending Adoption In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. 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. Reclassifications Reclassifications to the prior period were made to conform to the current period presentation in the Disaggregation of Revenue in Note 2 “Revenues” beginning in the first quarter of fiscal 2027. This reclassification did not affect total subscription and support revenue. 2. Revenues Disaggregation of Revenue Subscription and Support Revenue by the Company's Service Offerings Subscription and support revenues consisted of the following (in millions): Three Months Ended April 30, 2026 2025 Agentforce Apps $ 6,910 $ 6,345 Data 360, Headless Platform, and Other 3,683 2,952 Total Subscription and Support Revenue $ 10,593 $ 9,297 Total Revenue by Geographic Locations 16 Table of Contents Revenues by geographical region consisted of the following (in millions): Three Months Ended April 30, 2026 2025 Americas $ 7,233 $ 6,469 Europe 2,754 2,337 Asia Pacific 1,146 1,023 Total Revenue $ 11,133 $ 9,829 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 92 percent and 93 percent during the three months ended April 30, 2026 and 2025, respectively. No other country represented more than ten percent of total revenue during the three months ended April 30, 2026 and 2025. Contract Balances Contract Assets The Company records a contract asset when revenue recognized on a contract exceeds the billings. Contract assets were $ 905 million as of April 30, 2026 as compared to $ 818 million as of January 31, 2026. Current portions of the contract asset balance, are included in prepaid expenses and other current assets and the noncurrent portion is presented within deferred tax assets and other assets, net on the condensed consolidated balance sheets. Unearned Revenue Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The unearned revenue balance does not represent the total contract value of annual or multi-year, noncancellable subscription agreements. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter. The change in unearned revenue was as follows (in millions): Three Months Ended April 30, 2026 2025 Unearned revenue, beginning of period $ 24,317 $ 20,743 Billings and other (1) 7,179 6,885 Revenue recognized over time ( 10,486 ) ( 9,211 ) Revenue recognized at a point in time ( 647 ) ( 618 ) Unearned revenue, end of period $ 20,363 $ 17,799 (1) Other includes, for example, the impact of foreign currency translation as well as contributions from contract assets and business combinations. The majority of revenue recognized for these services is from the beginning of period unearned revenue balance. Revenue recognized over time primarily includes Cloud Services subscription and support revenue, which is generally recognized ratably over time, and professional services and other revenue, which is generally recognized ratably or as delivered. Revenue recognized at a point in time substantially consists of term software licenses. Remaining Performance Obligation Remaining performance obligation represents contracted revenue that has not yet been recognized and includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. The transaction price allocated to the remaining performance obligation is based on SSP. Remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, the timing of term license deliveries, average contract terms and foreign currency exchange rates. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. Remaining performance obligation is subject to future economic risks, including bankruptcies, regulatory changes and other market factors. The Company excludes amounts related to performance obligations from professional services contracts that are billed and recognized on a time and materials basis. 17 Table of Contents The majority of the Company's noncurrent remaining performance obligation is expected to be recognized in the next 13 to 36 months. Remaining performance obligation consisted of the following (in billions): Current Noncurrent Total As of April 30, 2026 $ 33.6 $ 34.3 $ 67.9 As of January 31, 2026 $ 35.1 $ 37.3 $ 72.4 3. Investments Marketable Securities As of April 30, 2026, marketable securities consisted of the following (in millions): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate notes and obligations $ 1,467 $ 3 $ ( 3 ) $ 1,467 U.S. treasury securities 673 1 ( 1 ) 673 Mortgage-backed obligations 33 0 ( 1 ) 32 Asset-backed securities 550 1 0 551 Municipal securities 29 0 0 29 Commercial paper 94 0 0 94 Covered bonds 1 0 0 1 Other 55 0 0 55 Total marketable securities $ 2,902 $ 5 $ ( 5 ) $ 2,902 As of January 31, 2026, marketable securities consisted of the following (in millions): Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate notes and obligations $ 1,343 $ 10 $ 0 $ 1,353 U.S. treasury securities 168 2 0 170 Mortgage-backed obligations 32 0 ( 1 ) 31 Asset-backed securities 618 4 0 622 Municipal securities 17 0 0 17 Commercial paper 30 0 0 30 Covered bonds 1 0 0 1 Other 14 0 0 14 Total marketable securities $ 2,223 $ 16 $ ( 1 ) $ 2,238 The contractual maturities of the investments classified as marketable securities were as follows (in millions): As of April 30, 2026 January 31, 2026 Due within 1 year $ 1,060 $ 460 Due in 1 year through 5 years 1,841 1,777 Due in 5 years through 10 years 1 1 $ 2,902 $ 2,238 Interest income from marketable securities for three months ended April 30, 2026 and 2025, was $ 109 million and $ 169 million, respectively, and is included in other income in the condensed consolidated statements of operations. 18 Table of Contents Strategic Investments Strategic investments by form and measurement category as of April 30, 2026 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 3 $ 7,612 $ 117 $ 7,732 Other investments 0 0 40 40 Balance as of April 30, 2026 $ 3 $ 7,612 $ 157 $ 7,772 Strategic investments by form and measurement category as of January 31, 2026 were as follows (in millions): Measurement Category Fair Value Measurement Alternative Other Total Equity securities $ 5 $ 7,415 $ 127 $ 7,547 Other investments 0 0 44 44 Balance as of January 31, 2026 $ 5 $ 7,415 $ 171 $ 7,591 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, 2026 2025 Unrealized gains (losses) recognized on publicly traded equity securities, net $ ( 1 ) $ ( 16 ) Unrealized gains recognized on privately held equity securities, net 328 7 Impairments on privately held equity securities and other investments ( 119 ) ( 47 ) Unrealized gains (losses), net 208 ( 56 ) Realized gains (losses) on sales of securities, net 350 ( 7 ) Gains (losses) on strategic investments, net $ 558 $ ( 63 ) 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 $ 330 million and $ 21 million and impairments and downward adjustments of $ 112 million and $ 60 million for the three months ended April 30, 2026 and 2025 , respectively. Realized gains (losses) 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. 4. Fair Value Measurement The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2. Significant other inputs that are directly or indirectly observable in the marketplace. Level 3. Significant unobservable inputs which are supported by little or no market activity. 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. 19 Table of Contents The following table presents information about the Company’s assets that were measured at fair value as of April 30, 2026 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Cash equivalents (1): Time deposits $ 0 $ 993 $ 0 $ 993 Money market mutual funds 5,672 0 0 5,672 Cash equivalent securities 0 161 0 161 Marketable securities: Corporate notes and obligations 0 1,467 0 1,467 U.S. treasury securities 0 673 0 673 Mortgage-backed obligations 0 32 0 32 Asset-backed securities 0 551 0 551 Municipal securities 0 29 0 29 Commercial paper 0 94 0 94 Covered bonds 0 1 0 1 Other 0 55 0 55 Strategic investments: Equity securities 3 0 0 3 Foreign currency derivative contracts 0 143 0 143 Total assets $ 5,675 $ 4,199 $ 0 $ 9,874 Liabilities: Foreign currency derivative contracts 0 124 0 124 Total liabilities $ 0 $ 124 $ 0 $ 124 (1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $ 2.1 billion of cash, as of April 30, 2026. The following table presents information about the Company’s assets that were measured at fair value as of January 31, 2026 and indicates the fair value hierarchy of the valuation (in millions): Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value Cash equivalents (1): Time deposits $ 0 $ 1,393 $ 0 $ 1,393 Money market mutual funds 3,204 0 0 3,204 Cash equivalent securities 0 567 0 567 Marketable securities: Corporate notes and obligations 0 1,353 0 1,353 U.S. treasury securities 0 170 0 170 Mortgage-backed obligations 0 31 0 31 Asset-backed securities 0 622 0 622 Municipal securities 0 17 0 17 Commercial paper 0 30 0 30 Covered bonds 0 1 0 1 Other 0 14 0 14 Strategic investments: Equity securities 5 0 0 5 Total assets $ 3,209 $ 4,198 $ 0 $ 7,407 20 Table of Contents (1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $ 2.2 billion of cash, as of January 31, 2026. Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis Substantially all of the Company's privately held equity securities and other investments are recorded at fair value on a non-recurring basis. The estimation of fair value for these investments requires the use of significant unobservable inputs, and as a result, the Company deems these assets as Level 3 within the fair value measurement framework. For privately held equity investments without a readily determinable fair value, the Company applies valuation methods based on information available, including the market approach, the common stock equivalent method, and option pricing models (“OPM”). Observable transactions, such as the issuance of new equity by an investee, are indicators of investee enterprise value and are used to estimate the fair value of the privately held equity investments. An OPM may be utilized to allocate value to the various classes of securities of the investee, including classes owned by the Company. Such information, available to the Company from investee companies, is supplemented with estimates such as volatility, expected time to liquidity and the rights and obligations of the securities the Company holds. 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 approximately $ 7.8 billion and $ 7.6 billion as of April 30, 2026 and January 31, 2026, respectively. 5. Leases and Other Commitments Leases 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 $ 146 million and $ 147 million for the three months ended April 30, 2026 and 2025, respectively. Included in operating lease costs are amounts related to restructuring charges. As of April 30, 2026, 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 2027 $ 467 $ 238 Fiscal 2028 578 169 Fiscal 2029 496 124 Fiscal 2030 341 107 Fiscal 2031 270 75 Thereafter 796 5 Total minimum lease payments 2,948 718 Less: Imputed interest ( 344 ) ( 54 ) Total $ 2,604 $ 664 The total lease commitment balance as of April 30, 2026, including leases not yet commenced, is $ 4.4 billion, of which approximately $ 3.7 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 $ 1.9 billion and $ 3.3 billion of accrued compensation as of April 30, 2026 and January 31, 2026, respectively. 21 Table of Contents 6. Business Combinations Qualified.com, Inc. In April 2026, the Company acquired all of the outstanding stock of Qualified.com, Inc. ("Qualified"), a leading provider of agentic artificial intelligence marketing solutions. The acquisition date fair value of the consideration transferred for Qualified was $ 1.2 billion, which consisted primarily of $ 1.1 billion in cash. The Company recorded $ 954 million of goodwill in connection with the acquisition, which is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill associated with the acquisition of Qualified has no basis and is not deductible for U.S. income tax purposes. The Company also recorded approximately $ 290 million of intangible assets for developed technology and customer relationships with useful lives of five and eight years , respectively. 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 Qualified, which were not material, in its condensed consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were also not material. 7. Intangible Assets Acquired Through Business Combinations and Goodwill Intangible Assets Acquired Through Business Combinations Intangible assets acquired through business combinations were as follows (in millions): Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Weighted Average Remaining Useful Life (Years) January 31, 2026 Additions and retirements, net April 30, 2026 January 31, 2026 Expense and retirements, net April 30, 2026 January 31, 2026 April 30, 2026 April 30, 2026 Acquired developed technology $ 4,796 $ 260 $ 5,056 $ ( 2,407 ) $ ( 244 ) $ ( 2,651 ) $ 2,389 $ 2,405 4.4 Customer relationships 8,659 125 8,784 ( 4,640 ) ( 261 ) ( 4,901 ) 4,019 3,883 6.3 Other (1) 684 11 695 ( 277 ) ( 56 ) ( 333 ) 407 362 1.8 Total $ 14,139 $ 396 $ 14,535 $ ( 7,324 ) $ ( 561 ) $ ( 7,885 ) $ 6,815 $ 6,650 5.4 (1) Other includes trade names, unbilled backlog, and territory rights. Amortization of intangible assets resulting from business combinations for the three months ended April 30, 2026 and 2025 was $ 561 million and $ 395 million, respectively. The expected future amortization expense for intangible assets as of April 30, 2026 was as follows (in millions): Fiscal Period: Remaining nine months of fiscal 2027 $ 1,356 Fiscal 2028 1,495 Fiscal 2029 1,186 Fiscal 2030 762 Fiscal 2031 497 Thereafter 1,354 Total amortization expense $ 6,650 Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. 22 Table of Contents The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions): Balance as of January 31, 2026 $ 57,941 Acquisition of Qualified 954 Other acquisitions and adjustments (1) 396 Balance as of April 30, 2026 $ 59,291 (1) Includes the effect of foreign currency translation and measurement period adjustments from prior period acquisitions. 8. Debt 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, 2026 Carrying Value as of April 30, 2026 Carrying Value as of January 31, 2026 Informatica 364-day Credit Agreement November 2025 November 2026 N/A 0 0 4,000 March 2028 Senior Notes March 2026 March 2028 4.50 % 3,500 3,488 0 April 2028 Senior Notes April 2018 April 2028 3.70 1,500 1,497 1,497 July 2028 Senior Sustainability Notes July 2021 July 2028 1.50 1,000 997 996 Informatica Three-year Credit Agreement November 2025 November 2028 N/A 0 0 2,000 March 2029 Senior Notes March 2026 March 2029 4.65 4,250 4,236 0 2026 Term Loan Credit Agreement (1) March 2026 March 2031 4.26 6,000 5,995 0 July 2031 Senior Notes July 2021 July 2031 1.95 1,500 1,493 1,493 September 2031 Senior Notes March 2026 September 2031 4.90 3,750 3,728 0 March 2033 Senior Notes March 2026 March 2033 5.20 2,750 2,731 0 March 2036 Senior Notes March 2026 March 2036 5.55 4,500 4,473 0 July 2041 Senior Notes July 2021 July 2041 2.70 1,250 1,237 1,237 March 2046 Senior Notes March 2026 March 2046 6.40 1,500 1,486 0 July 2051 Senior Notes July 2021 July 2051 2.90 2,000 1,980 1,980 March 2056 Senior Notes March 2026 March 2056 6.55 3,750 3,713 0 July 2061 Senior Notes July 2021 July 2061 3.05 1,250 1,236 1,236 March 2066 Senior Notes March 2026 March 2066 6.70 1,000 990 0 Total carrying value of debt 39,500 39,280 14,439 Less current portion of debt 0 ( 4,000 ) Total noncurrent debt $ 39,280 $ 10,439 (1) The contractual interest rate represents the weighted-average for the period outstanding. The Company was in compliance with all debt covenants as of April 30, 2026. The carrying amount of the Company’s 2026 Term Loan Credit Agreement (as defined below) approximates fair value as it bears interest at a floating rate that resets frequently and reflects current market spreads for similar credit risk profiles. The fair value of the term loan is classified as Level 2 within the fair value hierarchy. The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $ 31.4 billion and $ 6.7 billion as of April 30, 2026 and January 31, 2026, 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 first quarter of fiscal 2027 and the last day of trading of fiscal 2026, and are deemed Level 2 liabilities within the fair value measurement framework. 23 Table of Contents The contractual future principal payments for all borrowings as of April 30, 2026 were as follows (in millions): Fiscal Period: Remaining nine months of fiscal 2027 $ 0 Fiscal 2028 0 Fiscal 2029 6,000 Fiscal 2030 4,250 Fiscal 2031 0 Thereafter 29,250 Total principal outstanding $ 39,500 Revolving Credit Facility In October 2024, the Company 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 unsecured revolving credit facility (“Credit Facility”) and matures in October 2029. 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, 2026. 2026 Term Loan Credit Agreement In March 2026, the Company entered into a $ 6.0 billion five-year senior unsecured term loan credit agreement (the "2026 Term Loan Credit Agreement"). The Company used the 2026 Term Loan Credit Agreement to refinance and extend the maturities of the outstanding principal amounts under its existing $ 4.0 billion 364-day Credit Agreement and $ 2.0 billion Three-year Credit Agreement (collectively, the “Informatica Credit Agreements”). This non-cash financing activity has been excluded from the Condensed Consolidated Statement of Cash Flows. The 2026 Term Loan Credit Agreement matures in March 2031. As of April 30, 2026, the entire $ 6.0 billion principal amount was outstanding under the 2026 Term Loan Credit Agreement. March 2026 Notes In March 2026, the Company issued $ 25.0 billion aggregate principal amount of unsecured Senior Notes (collectively, the “March 2026 Notes”), with maturities ranging from 2028 to 2066. The proceeds from this offering, net of discounts and debt issuance costs, was $ 24.8 billion. Interest on each of the March 2026 Notes is payable semi-annually in arrears. The Company may redeem any portion of the March 2026 Notes, either in whole or in part, at any time, subject to certain early redemption provisions. The Company used the net proceeds from the March 2026 Notes to fund an accelerated share repurchase program of its common stock. For more information regarding the accelerated share repurchase program, see Note 9 “Stockholders’ Equity.” 24 Table of Contents 9. Stockholders’ Equity Stock option activity for the three months ended April 30, 2026 was as follows: Options Outstanding Outstanding Stock Options (in millions) Weighted- Average Exercise Price Aggregate Intrinsic Value (in millions) Balance as of January 31, 2026 6 $ 207.54 Options granted under all plans 1 180.69 Balance as of April 30, 2026 7 $ 203.99 $ 92 Vested or expected to vest 7 $ 204.67 $ 87 Exercisable as of April 30, 2026 6 $ 205.53 $ 48 Restricted stock activity for the three months ended April 30, 2026 was as follows: Restricted Stock Outstanding Outstanding (in millions) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in millions) Balance as of January 31, 2026 26 $ 265.64 Granted - restricted stock units and awards 20 195.02 Granted - performance-based restricted stock units 1 204.63 Canceled ( 2 ) 257.88 Vested and converted to shares ( 5 ) 255.71 Balance as of April 30, 2026 40 $ 230.36 $ 7,038 Expected to vest 34 $ 5,919 The aggregate expected stock-based compensation expense remaining to be recognized as of April 30, 2026 was as follows (in millions): Fiscal Period: Remaining nine months of fiscal 2027 $ 2,822 Fiscal 2028 2,881 Fiscal 2029 2,019 Fiscal 2030 1,174 Fiscal 2031 131 Total stock-based compensation expense $ 9,027 The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of April 30, 2026 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. In February 2026, the Board authorized $ 50.0 billion in share repurchases under the Share Repurchase Program, which is inclusive of the accelerated share repurchase described below and replaces the previous remaining unpurchased authorization. The Share Repurchase Program does not have a fixed expiration date and does not obligate the Company to acquire any specific number of shares. Under the Share Repurchase Program, shares of common stock may be repurchased using a variety of methods, including privately negotiated and or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as part of accelerated share repurchases and other methods. The timing, manner, price and amount of any repurchases are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. The Company accounts for treasury stock under the cost method. 25 Table of Contents In March 2026, the Company entered into accelerated share repurchase agreements (the “ASR Agreements”) with several financial institutions to repurchase an aggregate $ 25.0 billion of its common stock. Pursuant to the terms of the ASR Agreements, the Company made up-front payments totaling $ 25.0 billion and received an initial delivery of approximately 103 million shares of its common stock at an average price per share of $ 198.34 . The initial share delivery represented approximately 80 percent of the total shares expected to be repurchased under the ASR Agreements. During the first quarter of fiscal 2027, the Company recorded $ 20.6 billion to treasury stock for the cost of the delivered shares as well as associated fees and excise taxes. A $ 4.6 billion reduction to additional paid-in capital was recorded for the unsettled portion of the ASR Agreements as forward contract components classified within stockholders’ equity. In addition to share repurchases under the ASR Agreements, the Company repurchased the following shares of its common stock in the open market, (in millions, except average price per share): 2026 2025 Shares Average price per share Amount Shares Average price per share Amount Three months ended April 30 11 $ 192.00 $ 2,145 10 $ 273.42 $ 2,681 As of April 30, 2026, the Company was authorized to purchase a remaining $ 22.9 billion of its common stock under the Share Repurchase Program. Dividends The Company announced the following dividends: Record Date Payment Date Dividend per Share Amount (in millions) Three months ended April 30, 2026 April 9, 2026 April 23, 2026 $ 0.440 $ 374 Three months ended April 30, 2025 April 10, 2025 April 24, 2025 $ 0.416 $ 406 10. Income Taxes 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, 2026, the Company reported a tax provision of $ 614 million on pretax income of $ 2.7 billion, which resulted in an effective tax rate of 23 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, 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. 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. Unrecognized Tax Benefits and Other Considerations The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, Germany, Israel, and India. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. 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. 11. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the fiscal period. Diluted net income per share is computed by giving effect to all potential weighted average dilutive common stock, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income per share by application of the treasury stock method. 26 Table of Contents 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, 2026 2025 Numerator: Net income $ 2,107 $ 1,541 Denominator: Weighted-average shares outstanding for basic net income per share 868 960 Effect of dilutive securities: Employee stock awards 3 10 Weighted-average shares outstanding for diluted net income per share 871 970 The weighted-average number of shares outstanding used in the computation of diluted net income per share does not include the effect of the following potentially outstanding common stock. The effects of these potentially outstanding shares, including the unsettled forward contract component of the ASR agreements, 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, 2026 2025 Employee stock awards 31 2 Unsettled component of ASR Agreements 36 0 12. Legal Proceedings and Claims In the ordinary course of business, the Company is or may be involved in various legal or regulatory proceedings, claims or purported class actions related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour and other claims. The Company has been, and may in the future be, put on notice or sued by third parties for alleged infringement of their proprietary rights, including patent infringement. In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s reputation and future operating results. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. At this time, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate. In management’s opinion, resolution of all current matters, including those described below, is not expected to have a material adverse impact on the Company’s financial statements. However, depending on the nature and timing of any such dispute, payment or other contingency, the resolution of a matter could materially affect the Company’s current or future results of operations or cash flows, or both, in a particular quarter. Slack Litigation Beginning in September 2019, seven purported class action lawsuits were filed against Slack, its directors, certain of its officers and certain investment funds associated with certain of its directors, each alleging violations of securities laws in connection with Slack’s registration statement on Form S-1 (the “Registration Statement”) filed with the SEC. All but one of these actions were filed in the Superior Court of California for the County of San Mateo, though one plaintiff originally filed in the County of San Francisco before refiling in the County of San Mateo (and the original San Francisco action was dismissed). The remaining action was filed in the U.S. District Court for the Northern District of California (the “Federal Action”). In the Federal Action, captioned Dennee v. Slack Technologies, Inc., Case No. 3:19-CV-05857-SI, Slack and the other defendants filed a motion to dismiss the complaint in January 2020. In April 2020, the court granted in part and denied in part the motion to dismiss. In May 2020, Slack and the other defendants filed a motion to certify the court’s order for interlocutory appeal, which the court granted. Slack and the other defendants filed a petition for permission to appeal the district court’s order to the Ninth Circuit Court of Appeals, which was granted in July 2020. Oral argument was heard in May 2021. On September 20, 2021, the 27 Table of Contents Ninth Circuit affirmed the district court’s ruling. Slack filed a petition for rehearing with the Ninth Circuit on November 3, 2021, which was denied on May 2, 2022. 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. On June 1, 2023, the Supreme Court issued a unanimous decision vacating the Ninth Circuit’s decision and remanded for further proceedings. The Ninth Circuit ordered the parties to submit additional briefing in light of the Supreme Court’s decision. 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. On July 10, 2025, the plaintiff filed a petition for a writ of certiorari with the U.S. 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. Shareholder Litigation, Lead Case No. 19CIV05370 (the “State Court Action”). An additional state court action was filed in San Mateo County in June 2020 but was consolidated with the State Court Action in July 2020. Slack and the other defendants filed demurrers to the complaint in the State Court Action in February 2020. In August 2020, the court sustained in part and overruled in part the demurrers, and granted plaintiffs leave to file an amended complaint, which they filed in October 2020. Slack and the other defendants answered the complaint in November 2020. Plaintiffs filed a motion for class certification on October 21, 2021, which was never ruled upon. 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. 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 seeks 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 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. 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 involving a single plaintiff was filed in the U.S. District Court for the Northern District of Illinois, G.G. v. Salesforce, Inc., Case No. 1:20-CV-2335 (“G.G.”). 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. 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 district court dismissed one of plaintiff’s claims in January 2026. Beginning in April 2020, five actions involving six plaintiffs were filed and consolidated in the U.S. District Court for the Southern District of Texas as A.B. v. Salesforce, Inc., Case No. 4:20-CV-01254 (“A.B.”). The Company moved for summary judgment on the basis that the claims were barred by Section 230. In November 2023, the court denied the Company’s motion and in December 2024, the Fifth Circuit Court of Appeals affirmed that ruling. In October 2025, the district court in A.B. granted the Company’s motion pursuant to 18 U.S.C. § 1595(b) to stay the action pending final adjudication of criminal proceedings involving Backpage. Since May 2023, a number of similar actions have been filed in federal and state courts, including principally: (1) actions filed by 30 plaintiffs in the U.S. District Court for the Northern District of Texas, which were consolidated as S.M.A. v. Salesforce, Inc., Case No. 3:23-CV-0915-B (“S.M.A”); (2) actions filed by 21 plaintiffs in Texas state court in Dallas County, which were removed to the U.S. District Court for the Northern District of Texas and consolidated as A.S. v. Salesforce, Inc., Case No. 3:23-CV-1039-B (“A.S.”); (3) an action by a single plaintiff filed in Texas state court in Harris County, which was removed to the U.S. District Court for the Southern District of Texas as T.S. v. Salesforce, Inc., Case No. 4:23-CV-01792 (“T.S.”); (4) an action by a single plaintiff filed in Texas state court in Harris County, which was removed to the U.S. District Court for the Southern District of Texas as A.A. v. Salesforce, Inc., Case No. 4:26-CV-00757 (“A.A.”); (5) an action filed by a single plaintiff in the U.S. District Court for the Southern District of Texas as Jane Doe (C.S.) v. Salesforce, Inc., Case No. 2:25-CV-189 (“C.S.”); (6) an action filed by a single plaintiff in the U.S. District Court for the Western District of Washington as M.K. v. Salesforce.com, Inc, Case No. 2:23-CV-435 (“M.K.”); (7) an action filed by a single plaintiff in the U.S. District Court for the Middle District of Florida as I.H. v. Salesforce.com, LLC, Case No. 8:24-CV-1678 (“I.H.”); (8) an action filed by 13 plaintiffs in the U.S. District Court for the Northern District of Illinois as A.G.B. v. Salesforce, Inc., Case No. 25-CV-15801 (“A.G.B.”); (9) an action filed by a single plaintiff in the U.S. District Court for the Northern District of Illinois as J.L.D. v. Salesforce, Inc., Case No. 26-CV-01580 (“J.L.D.”); and (10) an action filed by two plaintiffs in the U.S. District Court for the Northern District of Illinois as E.Y.W. v. Salesforce, Inc., Case No. 1:26-CV-02632 (“E.Y.W.”). Six actions have further been filed by 244 plaintiffs in the U.S. District Court for the Northern District of Illinois and have been consolidated with G.G. (“G.G. consolidated cases”): A.I.R. v. Salesforce, Inc., Case No. 1:25-CV-6867; J.M.M. v. Salesforce, Inc., Case No. 1:25- 28 Table of Contents CV-6868; K.B. v. Salesforce, Inc., Case No. 1:25-CV-6869; N.R.J. v. Salesforce, Inc., Case No. 1:25-CV-6870; M.K. v. Salesforce, Inc., Case No. 1:25-CV-6871; and N.A.M. v. Salesforce, Inc., Case No. 1:25-CV-6872. Seven actions have been filed by fourteen plaintiffs in the U.S. District Court for the Northern District of California: A.A. v. Salesforce, Inc., Case No. 4:26-CV-01531; SF-00001 v. Salesforce, Inc., Case No. 4:26-CV-01594; SF-00002 v. Salesforce, Inc., Case No. 4:26-CV-01975; SF-00003 v. Salesforce, Inc., Case No. 4:26-CV-02162; SF-00004 v. Salesforce, Inc., Case No. 4:26-CV-02172; SF-00005 v. Salesforce, Inc., Case No. 4:26-CV-02296; SF-00009 v. Salesforce, Inc., Case No. 4:26-CV-02499. Fourteen actions have been filed by fourteen plaintiffs in the U.S. District Court for the Central District of California: SF-00014 v. Salesforce, Inc., Case No. 2:26-CV-03471 (“SF-00014”); SF-00015 v. Salesforce, Inc., Case No. 2:26-CV-03771 (“SF-00015”); SF-00016 v. Salesforce, Inc., Case No. 2:26-CV-03972 (“SF-00016”); SF-00017 v. Salesforce, Inc., Case No. 2:26-CV-04150 (“SF-00017”); SF-00018 v. Salesforce, Inc., Case No. 2:26-CV-04157 (“SF-00018”); SF-00019 v. Salesforce, Inc., Case No. 2:26-CV-04398 (“SF-00019”); SF-00020 v. Salesforce, Inc., Case No. 2:26-CV-04421 (“SF-00020”); SF-00021 v. Salesforce, Inc., Case No. 2:26-CV-04435 (“SF-00021”); SF-00022 v. Salesforce, Inc., Case No. 2:26-CV-04488 (“SF-00022”); SF-00023 v. Salesforce, Inc., Case No. 2:26-CV-04652 (“SF-00023”); SF-00024 v. Salesforce, Inc., Case No. 2:26-CV-04608 (“SF-00024”); SF-00025 v. Salesforce, Inc., Case No. 2:26-CV-04664 (“SF-00025”); SF-00026 v. Salesforce, Inc., Case No. 2:26-CV-04836 (“SF-00026”); SF-00027 v. Salesforce, Inc., Case No. 2:26-CV-04859 (“SF-00027”). Separately, 18 actions have been filed by 18 plaintiffs 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 (“Texas MDL”). In March 2024, the district court in S.M.A. granted the Company’s consolidated motion to dismiss the complaint on the ground that plaintiffs had not alleged the requisite intent element under the federal trafficking statute, and in April 2024 an amended complaint was filed amending the federal law claim and adding a Texas state law claim. 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, dismissed the Texas claim with prejudice, and denied the motion as to the federal law claim. In October 2025, S.M.A. was stayed pursuant to 18 U.S.C. § 1595(b) pending the final adjudication of the criminal proceedings involving Backpage. In September 2024, the district court in A.S. denied the Company’s motion to dismiss. In November 2024, the Company moved for judgment on the pleadings. In May 2025, the district court granted that motion with leave to amend. Plaintiffs then filed a consolidated amended complaint, and on June 20, 2025, the Company moved to dismiss that complaint. This motion was pending when, in October 2025, A.S. also was stayed pursuant to 18 U.S.C. § 1595(b) pending the final adjudication of the criminal proceedings involving Backpage. In June 2023, the Company moved to dismiss T.S., and that motion remains pending. In March 2024, T.S. was stayed pending the interlocutory appeal in A.B., which was remanded to the district court in January 2025. The Company filed a motion to dismiss in A.A. in February 2026, and that motion remains pending. In May 2026, the Company filed a motion to stay A.A. under 18 U.S.C § 1595(b) that remains pending. In September 2025, the Company filed a motion to dismiss C.S. that was pending when the court granted the motion to stay under 18 U.S.C. § 1595(b) in April 2026. Plaintiff in M.K. voluntarily dismissed her claim against Salesforce in May 2024. In December 2025, the district court in I.H. stayed the action pursuant to 18 U.S.C. § 1595(b) pending final adjudication of the criminal proceedings involving Backpage. The Company filed a motion to dismiss in the G.G. consolidated cases in January 2026 that was pending when the district court granted the Company’s motion to stay under 18 U.S.C. § 1595(b) to stay the G.G. consolidated cases pending the final adjudication of the criminal proceedings involving Backpage in March 2026. Plaintiffs in the G.G. consolidated cases filed a motion for reconsideration of the stay order, and that motion remains pending. In March through May 2026, the district courts in A.G.B., J.L.D., and E.Y.W. granted the parties’ stipulation to stay the cases subject to the same stay entered in the G.G. consolidated cases. The Company’s responses to Plaintiffs’ complaints in the Northern District of California are due in May and June 2026. The Company’s responses to the served complaints in the Central District of California cases are due in June and July 2026. In the Texas MDL, the Company moved to dismiss certain claims by plaintiffs in this MDL who reside outside of Texas on personal jurisdiction, extraterritoriality, and forum non conveniens grounds in the latter half of 2023. In February 2026, at a hearing on these motions, the court granted the Company’s motions to dismiss on forum non conveniens grounds. The Company will be dismissed from B.I.R., C.V., and T.K, in the Texas MDL pending the court’s written order. All of the foregoing actions seek unspecified monetary damages, attorneys’ fees, and costs. The Company intends to defend its interests in these proceedings vigorously. 29 Table of Contents