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Item 1. Financial Statements

2026-08-27 compared with 2026-05-28 · 167 added, 104 removed, 932 unchanged (23% of the section changed)

3 unchanged sentences

(in millions)

April 30, 2026 January 31, 2026

July 31, 2026 January 31, 2026

Assets (unaudited)

39 unchanged sentences

(in millions, except per share data)

1 Three Months Ended April 30,

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

2026 2025 2026 2025

Subscription and support $ 10,820 $ 9,690 $ 21,413 $ 18,987

24 unchanged sentences

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

Three Months Ended April 30,

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

2026 2025 2026 2025

Cost of revenues $ 234 $ 150 $ 478 $ 312

1 unchanged sentence

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

Three Months Ended April 30,

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

2026 2025 2026 2025

Cost of revenues $ 147 $ 126 $ 285 $ 277

7 unchanged sentences

(in millions)

1 Three Months Ended April 30,

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

2026 2025 2026 2025

Net income $ 3,526 $ 1,887 $ 5,633 $ 3,428

Other comprehensive income, net of reclassification adjustments:

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

Foreign currency translation and other gains (losses) ( 138 ) 180 ( 66 ) 290

3 unchanged sentences

Reclassification adjustment for net (gains) losses included in net income ( 9 ) 0 ( 12 ) 0

Other comprehensive income, before tax 85 141

Other comprehensive income (loss), before tax ( 139 ) 177 ( 54 ) 318

Tax effect 7 0 4 ( 5 )

Other comprehensive income, net 82 136

Other comprehensive income (loss), net ( 132 ) 177 ( 50 ) 313

Comprehensive income $ 3,394 $ 2,064 $ 5,583 $ 3,741

3 unchanged sentences

(in millions)

Three Months Ended April 30, 2026

Three and Six Months Ended July 31, 2026

Common Stock Treasury Stock Additional

11 unchanged sentences

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 issued 4 0 0 0 285 0 0 285

Common stock withheld related to net share settlement of equity awards 0 0 0 0 ( 77 ) 0 0 ( 77 )

Common stock repurchased 0 0 0 6 0 0 0 6

Stock-based compensation 0 0 0 0 908 0 0 908

Other comprehensive income (loss), net of tax 0 0 0 0 0 ( 132 ) 0 ( 132 )

Cash dividends and dividend equivalents declared 0 0 0 0 0 0 ( 373 ) ( 373 )

Net income 0 0 0 0 0 0 3,526 3,526

Balance at July 31, 2026 1,081 1 ( 258 ) ( 55,022 ) 66,029 263 27,107 38,378

Three and Six Months Ended July 31, 2025

Common Stock Treasury Stock Additional

10 unchanged sentences

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

Common stock issued 5 0 0 0 427 0 0 427

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

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

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

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

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

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

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

See accompanying Notes.

2 unchanged sentences

(in millions)

1 Three Months Ended April 30,

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

2026 2025 2026 2025

Operating activities:

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Capital expenditures ( 171 ) ( 135 ) ( 316 ) ( 314 )

Net cash used in investing activities ( 2,183 ) ( 1,567 )

Net cash provided by (used in) investing activities ( 1,197 ) 1,165 ( 3,380 ) ( 402 )

Financing activities:

7 unchanged sentences

Effect of exchange rate changes ( 75 ) 35 ( 64 ) 126

Net increase in cash and cash equivalents 1,608 2,080

Net increase (decrease) in cash and cash equivalents ( 625 ) ( 563 ) 983 1,517

Cash and cash equivalents, beginning of period 8,935 10,928 7,327 8,848

Cash and cash equivalents, end of period $ 8,310 $ 10,365 $ 8,310 $ 10,365

(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.

(1) Includes amortization of intangible assets, depreciation and impairment of fixed assets and amortization and impairment of right-of-use assets.

See accompanying Notes.

3 unchanged sentences

(in millions)

Three Months Ended April 30,

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

2026 2025 2026 2025

Supplemental cash flow disclosure:

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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.

The accompanying condensed consolidated balance sheet as of July 31, 2026 and the condensed consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the three and six months ended July 31, 2026 and 2025 are unaudited.

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

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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.

In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of July 31, 2026 and its results of operations, including its statements of comprehensive income, stockholders' equity and cash flows for the three and six months ended July 31, 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.

The results for the three and six months ended July 31, 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.

20 unchanged sentences

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.

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 include other income and provision for income taxes, are included in the Company’s condensed consolidated statement of operations.

Concentrations of Credit Risk, Significant Customers and Investments

8 unchanged sentences

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

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

No single customer accounted for ten percent or more of accounts receivable as of July 31, 2026 and January 31, 2026.

No single customer accounted for ten percent or more of total revenue during the three and six months ended July 31, 2026 and 2025.

As of July 31, 2026 and January 31, 2026, assets located outside the Americas were 15 percent and 16 percent of total assets, respectively.

As of July 31, 2026 and January 31, 2026, assets located in the United States were 84 percent and 82 percent of total assets, respectively.

As of July 31, 2026 and January 31, 2026, the Company’s privately held investment in Anthropic PBC (“Anthropic”) had a carrying value that represented approximately 45 percent and 22 percent, respectively, of the Company’s total strategic investments portfolio.

As of July 31, 2026, no other privately held investments had carrying values that were individually greater than ten percent of the Company’s strategic investments portfolio.

As of January 31, 2026, one additional privately held investment had a carrying value that represented approximately 13 percent of the portfolio.

Revenue Recognition

45 unchanged sentences

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.

The Company capitalizes incremental costs of obtaining revenue contracts related to noncancellable Cloud Services subscriptions, 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.

6 unchanged sentences

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

There were no impairments of costs to obtain revenue contracts for the three months ended April 30, 2026 and 2025.

Cash and Cash Equivalents

There were no impairments of costs to obtain revenue contracts for the three and six months ended July 31, 2026 and 2025.

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.

Cash equivalents are stated at fair value.

Marketable Securities

31 unchanged sentences

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.

The notional amount of outstanding foreign currency derivative contracts designated as cash flow hedges as of July 31, 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.

The notional amount of outstanding foreign currency derivative contracts not designated as cash flow hedges as of July 31, 2026 and January 31, 2026 was $ 13.2 billion and $ 11.9 billion, respectively.

Property and Equipment

97 unchanged sentences

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.

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

Reclassifications

4 unchanged sentences

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

Three Months Ended April 30,

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

2026 2025 2026 2025

Agentforce Apps $ 7,193 $ 6,682 $ 14,102 $ 13,027

Data 360, Headless Platform, and Other 3,618 3,008 7,299 5,960

Hedging gains 9 0 12 0

Total Subscription and Support Revenue $ 10,820 $ 9,690 $ 21,413 $ 18,987

1 unchanged sentence

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

Three Months Ended April 30,

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

2026 2025 2026 2025

Americas $ 7,404 $ 6,736 $ 14,637 $ 13,205

1 unchanged sentence

Asia Pacific 1,168 1,071 2,311 2,094

Hedging gains 9 0 12 0

Total Revenue $ 11,345 $ 10,236 $ 22,478 $ 20,065

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.

Americas revenue attributed to the United States was approximately 93 percent during the three and six months ended July 31, 2026 and 2025, respectively.

No other country represented more than ten percent of total revenue during the three and six months ended July 31, 2026 and 2025.

Contract Balances

1 unchanged sentence

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.

Contract assets were $ 855 million as of July 31, 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 portions are presented within deferred tax assets and other assets, net on the condensed consolidated balance sheets.

Unearned Revenue

3 unchanged sentences

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

Three Months Ended April 30,

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

2026 2025 2026 2025

Unearned revenue, beginning of period $ 20,363 $ 17,799 $ 24,317 $ 20,743

18 unchanged sentences

Current Noncurrent Total

As of April 30, 2026 $ 33.6 $ 34.3 $ 67.9

As of July 31, 2026 $ 33.5 $ 32.8 $ 66.3

As of January 31, 2026 $ 35.1 $ 37.3 $ 72.4

Marketable Securities

As of April 30, 2026, marketable securities consisted of the following (in millions):

As of July 31, 2026, marketable securities consisted of the following (in millions):

Cost Unrealized

7 unchanged sentences

Commercial paper 104 0 0 104

Covered bonds 1 0 0 1

Other 70 0 0 70

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Commercial paper 30 0 0 30

Covered bonds 1 0 0 1

Other 15 0 0 15

1 unchanged sentence

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

April 30, 2026 January 31, 2026

July 31, 2026 January 31, 2026

Due within 1 year $ 1,202 $ 460

2 unchanged sentences

$ 3,093 $ 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.

Interest income from marketable securities for the three months ended July 31, 2026 and 2025 was $ 97 million and $ 150 million, respectively, and $ 206 million and $ 319 million for the six months ended July 31, 2026 and 2025, respectively.

The amounts are included in other income in the condensed consolidated statements of operations.

Strategic Investments

Strategic investments by form and measurement category as of April 30, 2026 were as follows (in millions):

Strategic investments by form and measurement category as of July 31, 2026 were as follows (in millions):

Measurement Category

2 unchanged sentences

Other investments 0 0 32 32

Balance as of April 30, 2026

Balance as of July 31, 2026

$ 0 $ 11,169 $ 155 $ 11,324

8 unchanged sentences

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

1 Three Months Ended April 30,

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

2026 2025 2026 2025

Unrealized gains (losses) recognized on publicly traded equity securities, net $ 0 $ 13 $ ( 1 ) $ ( 3 )

2 unchanged sentences

Unrealized gains (losses), net 2,609 ( 20 ) 2,817 ( 76 )

Realized gains (losses) on sales of securities, net 350 ( 7 )

Realized gains on sales of securities, net 4 26 354 19

Gains (losses) on strategic investments, net $ 2,613 $ 6 $ 3,171 $ ( 57 )

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.

For privately held securities accounted for under the measurement alternative, the Company recorded upward adjustments of $ 2.9 billion and $ 13 million and impairments and downward adjustments of $ 296 million and $ 85 million for the three months ended July 31, 2026 and 2025, respectively, and upward adjustments of $ 3.2 billion and $ 34 million and impairments and downward adjustments of $ 408 million and $ 145 million for the six months ended July 31, 2026 and 2025, respectively.

Upward adjustments for the three and six months ended July 31, 2026 include unrealized gains of $ 2.7 billion and $ 3.0 billion, respectively, related to the Company’s investment in Anthropic.

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.

5 unchanged sentences

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

The following table presents information about the Company’s assets that were measured at fair value as of April 30, 2026 and indicates the fair value hierarchy of the valuation (in millions):

The following table presents information about the Company’s assets that were measured at fair value as of July 31, 2026 and indicates the fair value hierarchy of the valuation (in millions):

Description Quoted Prices in

2 unchanged sentences

(Level 1) Significant Other

Observable Inputs

(Level 2) Significant

11 unchanged sentences

Commercial paper 0 104 0 104

Covered bonds 0 1 0 1

Other 0 70 0 70

5 unchanged sentences

Total liabilities $ 0 $ 155 $ 0 $ 155

(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.

(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets, in addition to $ 2.0 billion of cash, as of July 31, 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):

16 unchanged sentences

Commercial paper 0 30 0 30

Covered bonds 0 1 0 1

Other 0 15 0 15

6 unchanged sentences

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.

The CSE method assumes all classes of stock have an equal fair value per share on a fully diluted, as-converted basis.

By contrast, an OPM may be utilized to allocate value to the various classes of securities of the investee, including classes owned by the Company, adjusted to reflect varying rights and preferences between share classes.

Fair value conclusions are determined using information shared by investee companies, which may be supplemented with estimates such as volatility and expected time to liquidity.

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.

The Company's privately held equity securities and other investments amounted to approximately $ 11.3 billion and $ 7.6 billion as of July 31, 2026 and January 31, 2026, respectively.

Leases and Other Commitments

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

Total operating lease costs were $ 146 million and $ 147 million for the three months ended April 30, 2026 and 2025, respectively.

Total operating lease costs were $ 129 million and $ 149 million for the three months ended July 31, 2026 and 2025, respectively, and were $ 275 million and $ 296 million for the six months ended July 31, 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):

As of July 31, 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

Remaining six months of fiscal 2027 $ 290 $ 147

Fiscal 2028 581 181

6 unchanged sentences

Total $ 2,455 $ 633

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 total lease commitment balance as of July 31, 2026, including leases not yet commenced, is $ 4.2 billion, of which approximately $ 3.5 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.

Accounts payable, accrued expenses and other liabilities included approximately $ 2.2 billion and $ 3.3 billion of accrued compensation as of July 31, 2026 and January 31, 2026, respectively.

Business Combinations

Qualified.com, Inc.

In April 2026, the Company acquired all of the outstanding stock of Qualified.com, Inc.

9 unchanged sentences

The transaction costs associated with the acquisition were also not material.

Pending Acquisitions

In May 2026, the Company entered into an agreement to acquire Contentful Global, Inc.

(“Contentful”), provider of a leading composable content platform, for approximately $ 1.5 billion in cash, net of the value of shares currently owned by Salesforce, and subject to customary purchase price adjustments.

The acquisition is expected to close in the third quarter of the Company’s fiscal year 2027, subject to customary closing conditions, including the receipt of required regulatory approvals.

In June 2026, the Company entered into an agreement to acquire Intercom, Inc.

(“Fin”), a customer agent platform providing autonomous, end-to-end AI service agents, for approximately $ 3.6 billion in cash, and subject to customary purchase price adjustments.

The acquisition is expected to close in the third quarter of the Company’s fiscal year 2027, subject to customary closing conditions, including the receipt of required regulatory approvals.

Intangible Assets Acquired Through Business Combinations and Goodwill

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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

January 31, 2026 Additions and retirements, net July 31, 2026 January 31, 2026 Expense and retirements, net July 31, 2026 January 31, 2026 July 31, 2026 July 31, 2026

Acquired developed technology $ 4,796 $ 275 $ 5,071 $ ( 2,407 ) $ ( 478 ) $ ( 2,885 ) $ 2,389 $ 2,186 4.4

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(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):

Amortization of intangible assets resulting from business combinations for the three months ended July 31, 2026 and 2025 was $ 522 million and $ 380 million, respectively, and $ 1.1 billion and $ 775 million for the six months ended July 31, 2026 and 2025, respectively.

The expected future amortization expense for intangible assets as of July 31, 2026 was as follows (in millions):

Fiscal Period:

Remaining nine months of fiscal 2027 $ 1,356

Remaining six months of fiscal 2027 $ 839

Fiscal 2028 1,499

9 unchanged sentences

Other acquisitions and adjustments (1) 355

Balance as of April 30, 2026 $ 59,291

Balance as of July 31, 2026 $ 59,250

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

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

Instrument Date of Issuance Maturity Date Contractual Interest Rate Outstanding Principal as of April 30, 2026

Carrying Value as of April 30, 2026 Carrying Value as of January 31, 2026

Instrument Date of Issuance Maturity Date Contractual Interest Rate Outstanding Principal as of July 31, 2026

Carrying Value as of July 31, 2026 Carrying Value as of January 31, 2026

Informatica 364-day Credit Agreement

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

The contractual future principal payments for all borrowings as of April 30, 2026 were as follows (in millions):

The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $ 30.8 billion and $ 6.7 billion as of July 31, 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 second 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.

The contractual future principal payments for all borrowings as of July 31, 2026 were as follows (in millions):

Fiscal Period:

Remaining nine months of fiscal 2027 $ 0

Remaining six months of fiscal 2027 $ 0

Fiscal 2028 0

8 unchanged sentences

The Company may use the proceeds of future borrowings under the Credit Facility for general corporate purposes.

There were no outstanding borrowings under the Credit Facility as of April 30, 2026.

There were no outstanding borrowings under the Credit Facility as of July 31, 2026.

2026 Term Loan Credit Agreement

3 unchanged sentences

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.

As of July 31, 2026, the entire $ 6.0 billion principal amount was outstanding under the 2026 Term Loan Credit Agreement.

March 2026 Notes

6 unchanged sentences

Stockholders’ Equity

Stock option activity for the three months ended April 30, 2026 was as follows:

Stock option activity for the six months ended July 31, 2026 was as follows:

Options Outstanding

4 unchanged sentences

Options granted under all plans 1 180.69

Balance as of April 30, 2026 7 $ 203.99 $ 92

Balance as of July 31, 2026 7 $ 205.71 $ 93

Vested or expected to vest 7 $ 206.24 $ 90

Exercisable as of April 30, 2026 6 $ 205.53 $ 48

Restricted stock activity for the three months ended April 30, 2026 was as follows:

Exercisable as of July 31, 2026 5 $ 206.19 $ 58

Restricted stock activity for the six months ended July 31, 2026 was as follows:

Restricted Stock Outstanding

6 unchanged sentences

Vested and converted to shares ( 7 ) 254.19

Balance as of April 30, 2026 40 $ 230.36 $ 7,038

Balance as of July 31, 2026 39 $ 224.79 $ 7,144

Expected to vest 33 $ 6,088

The aggregate expected stock-based compensation expense remaining to be recognized as of April 30, 2026 was as follows (in millions):

The aggregate expected stock-based compensation expense remaining to be recognized as of July 31, 2026 was as follows (in millions):

Fiscal Period:

Remaining nine months of fiscal 2027 $ 2,822

Remaining six months of fiscal 2027 $ 1,955

Fiscal 2028 2,918

3 unchanged sentences

Total stock-based compensation expense $ 8,324

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.

The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of July 31, 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

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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.

The final settlement of each transaction under the ASR agreements is expected to occur in the third quarter of fiscal 2027.

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):

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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.

Three months ended July 31 0 $ — $ 0 8 $ 269.96 $ 2,199

As of July 31, 2026, the Company was authorized to purchase a remaining $ 22.9 billion of its common stock under the Share Repurchase Program.

The Company announced the following dividends:

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Three months ended April 30, 2026 April 9, 2026 April 23, 2026 $ 0.440 $ 374

Three months ended July 31, 2026 June 11, 2026 July 2, 2026 $ 0.440 $ 373

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

Three months ended July 31, 2025 June 18, 2025 July 10, 2025 $ 0.416 $ 404

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.

For the six months ended July 31, 2026, the Company reported a tax provision of $ 1.6 billion on pretax income of $ 7.3 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.

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

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

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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.

Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, Germany, Israel, India and Australia.

The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years.

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

1 Three Months Ended April 30,

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

2026 2025 2026 2025

Net income $ 3,526 $ 1,887 $ 5,633 $ 3,428

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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,

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

2026 2025 2026 2025

Employee stock awards 40 9 35 5

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Oral argument was heard in May 2021.

On September 20, 2021, the

Ninth Circuit affirmed the district court’s ruling.

On September 20, 2021, the 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.

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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 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.

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26-CV-01580 (“J.L.D.”);

and (10) an action filed by two plaintiffs in the U.S.

(10) an action filed by two plaintiffs in the U.S.

District Court for the Northern District of Illinois as E.Y.W.

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1:26-CV-02632 (“E.Y.W.”);

and (11) an action filed by 13 plaintiffs in the U.S.

District Court for the Northern District of Illinois as F.A.P.

Salesforce, Inc., Case No.

1:26-CV-07690 (“F.A.P.”).

Six actions have further been filed by 244 plaintiffs in the U.S.

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Salesforce, Inc., Case No.

1:25-CV-6868;

Salesforce, Inc., Case No.

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1:25-CV-6872.

Seven actions have been filed by fourteen plaintiffs in the U.S.

Thirteen actions have been filed by twenty-five plaintiffs in the U.S.

District Court for the Northern District of California:

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4:26-CV-02499;

Fourteen actions have been filed by fourteen plaintiffs in the U.S.

District Court for the Central District of California:

Salesforce, Inc., Case No.

4:26-CV-04711;

Salesforce, Inc., Case No.

4:26-CV-05066;

Salesforce, Inc., Case No.

4:26-CV-05257;

Salesforce, Inc., Case No.

4:26-CV-05416;

Salesforce, Inc., Case No 4:26-CV-07497;

Salesforce, Inc., Case No.

3:26-CV-08214.

Sixteen actions were filed by sixteen plaintiffs in the U.S.

District Court for the Central District of California and all were transferred to the U.S.

District Court for the Northern District of California in June and July 2026 and assigned new case numbers:

Salesforce, Inc., Case No.

4:26-CV-05294 (“SF-00014”);

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4:26-CV-06506 (“SF-00027”);

Salesforce, Inc., Case No.

4:26-CV-06509 (“SF-00028”);

Salesforce, Inc., Case No.

4:26-CV-06515 (“SF-00029”).

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”).

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under 18 U.S.C § 1595(b) that remains pending.

In July 2026, the court held an initial scheduling conference in A.A.

and entered a scheduling order.

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

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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.

In March through July 2026, the district courts in A.G.B., J.L.D., E.Y.W., and F.A.P.

granted the parties’ stipulations 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.

All but the most recently filed actions pending in the Northern District of California have been related and assigned to a single judge and most of the actions have been stayed by stipulation of the parties.

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.

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

What changed 10-Q

Item 1. Financial Statements