{"schemaVersion":1,"research":true,"symbol":"crm","name":"Salesforce","topic":"moat","path":"/stock/crm/moat","status":"stale","version":6,"updatedAt":"2026-10-19T10:30:01.619Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"The supplied passages support a narrow switching-cost moat from embedded customer data, business logic, integrations and operational workflows. Reported customer deployments and recurring contractual demand support a current advantage, although migration costs and retention rates are not quantified. Pricing flexibility is demonstrated; realized pricing power remains unestablished. AI monetization uncertainty, enterprise bargaining power and renewal flexibility limit confidence in durability. Network effects, superior costs and a wide moat are not established.","advantages":[{"mechanism":"switching_costs","claim":"Replacing Salesforce in deployed enterprise workflows likely requires rebuilding integrations, business logic and operational processes. Issuer-reported customer usage demonstrates operational embedding, while noncancellable contracts and renewal-related accounting provide supporting evidence of continuing demand. Switching friction is an inference from this evidence, not a disclosed migration-cost measurement.","durability":"Multi-year subscriptions and integrated workflows support persistence across contract cycles. Continued subscription growth and recoverability of acquisition costs support the current advantage, but do not demonstrate exceptional or decade-long durability. AI could deepen dependence on existing workflows; that incremental protection remains potential.","risks":"Customers can leave after typically 12–36 months, and some have done so. Enterprise customers demand pricing and packaging flexibility. Consumption pricing introduces forecasting and monetization uncertainty, while weaker demand for large transformation engagements is a realized caution. These disclosures do not establish widespread displacement.","invalidation":"The thesis would be weakened by sustained contraction in comparable subscription demand alongside worsening renewals or downgrades, shortened customer-benefit estimates or contract-cost impairments. Evidence that customers can replace integrated workflows with little disruption or expense would directly invalidate the switching-cost mechanism. Revenue growth alone would not rescue the thesis if driven by acquisitions while installed-customer demand deteriorated.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5","e6","e7","e8"],"counterEvidenceIds":["e9","e10","e11","e12","e13"]}],"evidence":[{"id":"e1","sourceId":"filing-3","location":"CEO letter / platform integration description","excerpt":"Our platform provides the essential “landing zone” for agents, integrating trusted data, business logic, and secure workflows."},{"id":"e2","sourceId":"filing-3","location":"CEO letter / reported customer deployment","excerpt":"Proven Customer Impact: Southwest Airlines launched a customer service agent in just four months that now autonomously resolves 20% of its 20 million annual requests."},{"id":"e3","sourceId":"filing-3","location":"CEO letter / reported customer usage and productivity","excerpt":"Siemens is using sales agents to qualify 500 leads daily, saving 1,200 hours per human agent annually."},{"id":"e4","sourceId":"filing-2","location":"Revenue contract costs / estimated benefit including renewals","excerpt":"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."},{"id":"e5","sourceId":"filing-2","location":"Revenue contract costs / noncancellable contracts","excerpt":"The capitalized amounts are recoverable through future revenue streams under all noncancellable customer contracts."},{"id":"e6","sourceId":"filing-2","location":"Revenue contract costs / absence of impairments","excerpt":"There were no impairments of costs to obtain revenue contracts for the three and six months ended July 31, 2026 and 2025."},{"id":"e7","sourceId":"filing-2","location":"MD&A / subscription and support revenue share","excerpt":"Subscription and support revenues accounted for approximately 95 percent of our total revenues for the three and six months ended July 31, 2026 and 95 percent for the three and six months ended July 31, 2025."},{"id":"e8","sourceId":"filing-2","location":"MD&A / subscription and support revenue growth by offering","excerpt":"Subscription and Support Revenues by Service Offering Subscription and support revenues consisted of the following (in millions): Three Months Ended July 31, 2026 As a % of Total Subscription and Support Revenues 2025 As a % of Total Subscription and Support Revenues Growth Rate Agentforce Apps $ 7,193 67 % $ 6,682 69 % 8 % Data 360, Headless Platform, and Other 3,618 33 3,008 31 20 Hedging gains 9 0 0 — N/A Total $ 10,820 100 % $ 9,690 100 % 12 % Six Months Ended July 31, 2026 As a % of Total Subscription and Support Revenues 2025 As a % of Total Subscription and Support Revenues Growth Rate Agentforce Apps $ 14,102 66 % $ 13,027 69 % 8 % Data 360, Headless Platform, and Other 7,299 34 5,960 31 22 Hedging gains 12 0 0 — N/A Total $ 21,413 100 % $ 18,987 100 % 13 % Effective as of the first quarter of fiscal year 2027, we have revised the presentation of our disaggregated revenue disclosures to reflect the evolution of our product architecture to deliver the Agentic Enterprise."},{"id":"e9","sourceId":"filing-2","location":"Risk factors / contract duration and actual nonrenewals","excerpt":"Our customers have no obligation to renew their subscriptions after the expiration of their contractual subscription period, which is typically 12 to 36 months, and in the normal course of business, some customers have elected not to renew."},{"id":"e10","sourceId":"filing-2","location":"Risk factors / renewal and downgrade flexibility","excerpt":"Our customers may renew for fewer subscriptions, renew for shorter contract lengths or switch to lower cost offerings of our services."},{"id":"e11","sourceId":"filing-2","location":"Risk factors / consumption pricing complexity","excerpt":"Additionally, our transition toward more complex pricing structures, including AI-driven consumption models, may make it more difficult to optimize our pricing, predict attrition rates, and accurately forecast revenue."},{"id":"e12","sourceId":"filing-2","location":"Risk factors / enterprise pricing and packaging demands","excerpt":"In addition, larger enterprise customers and governmental entities often demand significant pricing and packaging flexibility, as well as complex configuration and integration services and features."},{"id":"e13","sourceId":"filing-2","location":"MD&A / realized decline in transformation engagement demand","excerpt":"The decrease in professional services and other revenues for the three and six months ended July 31, 2026 was primarily due to less demand for larger, multi-year transformation engagements, which may continue in the near term."},{"id":"e14","sourceId":"filing-2","location":"Revenue recognition / actual pricing and discounting practices","excerpt":"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."},{"id":"e15","sourceId":"filing-2","location":"Revenue recognition / ability to modify pricing practices","excerpt":"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."},{"id":"e16","sourceId":"filing-1","location":"MD&A / fiscal 2026 and fiscal 2025 operating margins","excerpt":"Operating margin, which represents income from operations as a percentage of total revenue, increased to approximately 20 percent for fiscal 2026 compared to approximately 19 percent in the prior year period."},{"id":"e17","sourceId":"filing-1","location":"Restructuring note / actual restructuring charges","excerpt":"The Company recognized $586 million, $461 million and $988 million in restructuring charges during fiscal 2026, 2025, and 2024 respectively, which were primarily comprised of workforce reductions that include charges for employee transition, severance payments, employee benefits and stock-based compensation, as well as charges for data center exits and office space reductions."},{"id":"e18","sourceId":"filing-2","location":"Risk factors / potential AI compliance and operating costs","excerpt":"Uncertainty surrounding new and emerging AI applications, including generative AI content creation, AI agents, and multi-organization and multi-agent interoperability considerations may require additional investment in compliance programs, governance frameworks, licensing arrangements, documentation, auditing and risk mitigation processes, which may be complex, costly and could impact our profit margins."},{"id":"e19","sourceId":"filing-2","location":"MD&A / operating cash generation and noncash adjustments","excerpt":"See discussion in “Debt” below. Cash Flows For the three and six months ended July 31, 2026 and 2025, our cash flows were as follows (in millions): 2 Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Net cash provided by operating activities $ 1,269 $ 740 $ 7,970 $ 7,216 Net cash provided by (used in) investing activities (1,197) 1,165 (3,380) (402) Net cash used in financing activities (622) (2,503) (3,543) (5,423) Operating Activities The net cash provided by operating activities during the six months ended July 31, 2026 was primarily comprised of net income of $5.6 billion, adjusted for non-cash items, including $3.2 billion of gains on strategic investments, $2.0 billion of depreciation and amortization, and $1.8 billion of stock-based compensation expense."},{"id":"e20","sourceId":"filing-2","location":"MD&A / actual repurchases, dividends and debt issuance","excerpt":"The net cash used in financing activities during the six months ended July 31, 2026 was primarily related to repurchases of common stock of $27.3 billion, which includes our March 2026 accelerated share repurchase, and payments of dividends and equivalents of $729 million, partially offset by proceeds from the issuance of debt, net of issuance costs of $24.8 billion."},{"id":"e21","sourceId":"filing-2","location":"Debt / senior unsecured notes outstanding","excerpt":"As of July 31, 2026, we had senior unsecured notes outstanding, with maturities starting in March 2028 and extending through March 2066, with a total carrying value of $33.3 billion."},{"id":"e22","sourceId":"filing-2","location":"MD&A / acquisition spending","excerpt":"The net cash used in investing activities during the six months ended July 31, 2026 was primarily related to net outflows for acquisitions of $1.5 billion, of which $1.1 billion related to the Qualified acquisition, as well as net outflows from marketable securities activity of $871 million."},{"id":"e23","sourceId":"filing-3","location":"Compensation discussion / advance setting of performance goals","excerpt":"•Set “Margin & Growth” goals for fiscal 2026, 2027, and 2028 at grant, eliminating previous delays in goal setting."},{"id":"e24","sourceId":"filing-3","location":"Compensation discussion / granted awards and annual performance achievement","excerpt":"Fiscal 2025 Operating Margin PRSUs (Granted in March 2024) Performance Level Fiscal 2025 Non-GAAP Operating Margin(1) Goals Actual Fiscal 2025 Performance(1) Fiscal 2026 Non-GAAP Operating Margin(2) Goals Actual Fiscal 2026 Performance (Set in March 2024) Threshold ≥ 27.6% 33.0% ≥ 29.3% 33.9% Target ≥ 32.5% ≥ 34.5% Maximum ≥ 37.4% ≥ 39.7% Vesting Achievement Percentage(3) 110%(1) 91% 1.As previously disclosed in our 2025 Proxy Statement."},{"id":"e25","sourceId":"filing-3","location":"Compensation discussion / distinction between annual achievement and final payout","excerpt":"3.The average of the annual vesting achievement percentages for each fiscal year in the three-year performance period will be used to determine the final payout percentage for the Operating Margin PRSUs."},{"id":"e26","sourceId":"filing-3","location":"Compensation governance / prohibition on hedging and pledging","excerpt":"No hedging or pledging of our securities"},{"id":"e27","sourceId":"filing-3","location":"Summary Compensation Table / reported executive compensation","excerpt":"Name and Principal Position Fiscal Year Salary ($) Bonus ($) Stock Awards(1)(2) ($) Option Awards(3) ($) Non-Equity Incentive Plan Compensation ($) All Other Compensation(4) ($) Total ($) Marc Benioff Chair of the Board and CEO 2026 1,550,000 833(5) 27,265,360 10,743,097 3,602,588 6,217,374 49,379,252 2025 1,550,000 2,500 28,028,587 17,400,069 3,487,500 4,606,000 55,074,656 2024 1,550,000 2,500 16,338,290 14,000,033 3,100,000 4,651,350 39,642,173 Robin Washington President and Chief Operating and Financial Officer(6) 2026 1,100,000 8,500,000 14,091,350(7) 2,685,820 1,988,525 80,004 28,445,699 Srinivas Tallapragada President and Chief Engineering and Customer Success Officer 2026 1,100,000 — 14,755,024 2,685,820 1,988,525 51,409 20,580,778 2025 1,000,000 — 15,640,564 — 1,500,000 12,428 18,152,992 2024 1,000,000 — 10,269,502 — 1,000,000 5,000 12,274,502 Miguel Milano President and Chief Revenue Officer 2026 1,000,000 1,125,000(8) 12,122,912 2,238,153 1,549,500 665,916 18,701,481 Parker Harris Co-Founder and Chief Technology Officer, Slack 2026 1,000,000 — 10,390,861 1,865,142 1,291,250 — 14,547,253 2025 1,000,000 — 13,227,812 — 1,250,000 — 15,477,812 2024 1,000,000 — 10,269,502 — 1,000,000 — 12,269,502 David Schmaier President and Chief Strategy Officer 2026 1,000,000 — 11,030,269 1,865,142 1,291,250 6,500 15,193,161 Amy Weaver Former President and Chief Financial Officer(9) 2026 153,889 — 1,038,519 — — 37,655 1,230,063 2025 1,050,000 — 15,640,564 — 1,575,000 16,888 18,282,452 2024 1,000,000 — 10,269,502 — 1,000,000 6,072 12,275,574 1.Represents the aggregate grant date fair value of RSUs and PRSUs."},{"id":"e28","sourceId":"filing-1","location":"MD&A / realized fiscal 2026 revenue growth","excerpt":"•Revenue: For fiscal 2026, revenue was $41.5 billion, an increase of ten percent year-over-year."},{"id":"e29","sourceId":"filing-2","location":"MD&A / acquired revenue contribution","excerpt":"36 Table of Contents The acquisition of Informatica in November 2025 contributed approximately $456 million and $900 million of total revenues for the three and six months ended July 31, 2026, respectively."},{"id":"e30","sourceId":"filing-1","location":"Risk factors / historical sales reorganization productivity reductions","excerpt":"Such changes have in some periods resulted in, and may in the future result in, a reduction of productivity, which could negatively impact our operating results."},{"id":"e31","sourceId":"filing-3","location":"Compensation Committee / member independence","excerpt":"All committee members are independent under NYSE listing standards and SEC rules."},{"id":"e32","sourceId":"filing-3","location":"Governance / annual Board evaluation process","excerpt":"The Governance Committee, with oversight from our Lead Independent Director, leads a formal self-evaluation process on an annual basis."},{"id":"e33","sourceId":"filing-3","location":"Governance / independent evaluation facilitator","excerpt":"The Board engages an independent third-party consultant, experienced in corporate governance matters, to facilitate a robust assessment process."},{"id":"e34","sourceId":"filing-3","location":"Voting rights / one vote per common share","excerpt":"All of our stockholders have one vote for every share of Salesforce common stock owned as of our record date of April 6, 2026."},{"id":"e35","sourceId":"filing-1","location":"Controls and procedures / management effectiveness conclusion","excerpt":"Based on the results of our evaluation, our management concluded that our internal control over financial reporting was effective as of January 31, 2026."},{"id":"e36","sourceId":"filing-1","location":"Controls and procedures / external audit of internal controls","excerpt":"The effectiveness of our internal control over financial reporting as of January 31, 2026 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in its report which is included in Item 8 of this Annual Report on Form 10-K."},{"id":"e37","sourceId":"filing-2","location":"Risk factors / uncertainty of AI offering monetization","excerpt":"In addition, the markets and monetization strategies for certain offerings, including Agentforce and Data 360, remain relatively new and uncertain and may present additional risks and challenges."},{"id":"completion-996ef58bb293-e1","sourceId":"filing-2","location":"Significant Judgments—Contracts with Multiple Performance Obligations; pricing practices","excerpt":"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."},{"id":"completion-996ef58bb293-e2","sourceId":"filing-2","location":"Significant Judgments—Contracts with Multiple Performance Obligations; SSP stratification","excerpt":"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."},{"id":"completion-996ef58bb293-e3","sourceId":"filing-2","location":"Revenue discussion; Informatica contribution","excerpt":"36 Table of Contents The acquisition of Informatica in November 2025 contributed approximately $456 million and $900 million of total revenues for the three and six months ended July 31, 2026, respectively."},{"id":"completion-996ef58bb293-e4","sourceId":"filing-7","location":"Investor Day; selected customer ARR expansion, Q2 FY25–Q2 FY27","excerpt":"Manufacturing Customer High correlation of AI adoption in scaled growth customers across industries Agentic enterprise expansion in action AI shows up in +80% of our top 100 growth stories x ARR Financial Services Customer Q2 FY25 Q2 FY27 A R R 2.3x ARR Automotive Customer Q2 FY25 Q2 FY27 A R R 1.3x ARR $36M $42M Cybersecurity Customer Q2 FY25 Q2 FY27 A R R 1.5x ARR $50M Agentforce & premium upgrades Q2 FY25 Q2 FY27 A R R 6.5x ARR $20M Public Sector Customer Q2 FY25 Q2 FY27 A R R 4.0x ARR $9M Professional Services Customer Q2 FY25 Q2 FY27 A R R 4.5x ARR $15M Agentforce, premium upgrades & flex credits, Data 360, & more Core licenses Agentforce, premium upgrades, Data 360, & more Core license Flex credits & more Core licensesData 360 & more Core licenses Agentforce, premium upgrades, Data 360, & more Core licenses Agentforce, premium upgrades, & more Core licenses More Core licenses & Data 360 Agentforce, premium upgrades & flex credits, Data 360, & more Core licenses Each customer ARR multiplier based on 2 year expansion from Q2 FY25 through Q2 FY27."},{"id":"completion-996ef58bb293-e5","sourceId":"filing-2","location":"Revenue recognition; subscription cancellation and refund terms","excerpt":"Substantially all of the Company’s subscription service arrangements are noncancellable and do not contain refund-type provisions."},{"id":"completion-996ef58bb293-e6","sourceId":"filing-2","location":"Risk factors; subscription duration and actual nonrenewals","excerpt":"Our customers have no obligation to renew their subscriptions after the expiration of their contractual subscription period, which is typically 12 to 36 months, and in the normal course of business, some customers have elected not to renew."},{"id":"completion-996ef58bb293-e7","sourceId":"filing-2","location":"Enterprise sales discussion; pricing and packaging flexibility","excerpt":"In addition, larger enterprise customers and governmental entities often demand significant pricing and packaging flexibility, as well as complex configuration and integration services and features."},{"id":"completion-996ef58bb293-e8","sourceId":"filing-7","location":"GAAP to Non-GAAP Financial Reconciliation; FY22–FY26 actual results, in millions; FY27 guidance separately identified","excerpt":"GAAP to Non-GAAP Financial Reconciliation (in millions) Non-GAAP income from operations FY22 FY23 FY24 FY25 FY26 Full Year FY27 Guidance2 GAAP income from operations $ 548 $ 1,030 $ 5,011 $ 7,205 $ 8,331 GAAP Operating Margin 20.1 % Plus: Plus: Amortization of purchased intangibles 1,624 1,951 1,869 1,651 1,687 Amortization of purchased intangibles3 4.4 % Stock-based compensation expense1 2,779 3,259 2,764 3,181 3,480 Stock-based compensation expense1,3 9.0 % Restructuring and acquisition-related costs1 0 828 988 461 658 Restructuring and acquisition-related costs1,3 0.8 % Non-GAAP income from operations $ 4,951 $ 7,068 $ 10,632 $ 12,498 $ 14,156 Non-GAAP operating margin 34.3 % Revenue 26,492 31,352 34,857 37,895 41,525 Non-GAAP operating margin 18.7 % 22.5 % 30.5 % 33.0 % 34.1 % (in millions) Free Cash Flow FY22 FY23 FY24 FY25 FY26 GAAP net cash provided by operating activities $ 6,000 $ 7,111 $ 10,234 $ 13,092 $ 14,996 (Capital expenditures) (717) (798) (736) (658) (594) Free Cash Flow $ 5,283 $ 6,313 $ 9,498 $ 12,434 $ 14,402 1."},{"id":"completion-996ef58bb293-e9","sourceId":"filing-2","location":"Stockholders’ Equity; March 2026 accelerated share repurchase","excerpt":"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."},{"id":"completion-996ef58bb293-e10","sourceId":"filing-2","location":"Stockholders’ Equity; ASR upfront payments and initial delivery","excerpt":"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."},{"id":"completion-996ef58bb293-e11","sourceId":"filing-2","location":"Market interest risk; debt principal outstanding July 31, 2026, in millions","excerpt":"We maintain debt obligations that are subject to market interest risk, as follows (in millions): \nInstrument\nMaturity Date\nPrincipal Outstanding as of July 31, 2026\nInterest Terms\nContractual Interest Rate\nMarch 2028 Senior Notes\nMarch 2028\n3,500 \nFixed\n4.50%\nApril 2028 Senior Notes\nApril 2028\n1,500 \nFixed\n3.70\nJuly 2028 Senior Sustainability Notes\nJuly 2028\n1,000 \nFixed\n1.50\nMarch 2029 Senior Notes\nMarch 2029\n4,250 \nFixed\n4.65\nRevolving Loan Credit Agreement\nOctober 2029\nFloating\n2026 Term Loan Credit Agreement (1)\nMarch 2031\n6,000 \nFloating\n4.24\nJuly 2031 Senior Notes\nJuly 2031\n1,500 \nFixed\n1.95\nSeptember 2031 Senior Notes\nSeptember 2031\n3,750 \nFixed\n4.90\nMarch 2033 Senior Notes\nMarch 2033\n2,750 \nFixed\n5.20\nMarch 2036 Senior Notes\nMarch 2036\n4,500 \nFixed\n5.55\nJuly 2041 Senior Notes\nJuly 2041\n1,250 \nFixed\n2.70\nMarch 2046 Senior Notes\nMarch 2046\n1,500 \nFixed\n6.40\nJuly 2051 Senior Notes\nJuly 2051\n2,000 \nFixed\n2.90\nMarch 2056 Senior Notes\nMarch 2056\n3,750 \nFixed\n6.55\nJuly 2061 Senior Notes\nJuly 2061\n1,250 \nFixed\n3.05\nMarch 2066 Senior Notes\nMarch 2066\n1,000 \nFixed\n6.70\n(1) The contractual interest rate represents the weighted-average for the period outstanding."},{"id":"completion-996ef58bb293-e12","sourceId":"filing-2","location":"Stockholders’ Equity; actual stock award activity and outstanding compensation commitments at July 31, 2026","excerpt":"Stockholders’ Equity Stock option activity for the six months ended July 31, 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 July 31, 2026 7 $ 205.71 $ 93 Vested or expected to vest 7 $ 206.24 $ 90 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 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 22 191.68 Granted - performance-based restricted stock units 1 204.63 Canceled (3) 249.56 Vested and converted to shares (7) 254.19 Balance as of July 31, 2026 39 $ 224.79 $ 7,144 Expected to vest 33 $ 6,088 25 Table of Contents The aggregate expected stock-based compensation expense remaining to be recognized as of July 31, 2026 was as follows (in millions): Fiscal Period: Remaining six months of fiscal 2027 $ 1,955 Fiscal 2028 2,918 Fiscal 2029 2,052 Fiscal 2030 1,235 Fiscal 2031 164 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 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."},{"id":"completion-996ef58bb293-e13","sourceId":"filing-2","location":"Lease commitments at July 31, 2026","excerpt":"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 six months of fiscal 2027 $ 290 $ 147 Fiscal 2028 581 181 Fiscal 2029 488 138 Fiscal 2030 336 120 Fiscal 2031 270 89 Thereafter 806 9 Total minimum lease payments 2,771 684 Less: Imputed interest (316) (51) Total $ 2,455 $ 633 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."},{"id":"completion-996ef58bb293-e14","sourceId":"filing-2","location":"Business combinations; announced Fin acquisition cash consideration","excerpt":"(“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."},{"id":"completion-996ef58bb293-e15","sourceId":"filing-2","location":"Significant Judgments; ability to modify pricing practices","excerpt":"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."},{"id":"completion-996ef58bb293-e16","sourceId":"filing-2","location":"Subscription and Support Revenues by Service Offering; three and six months ended July 31, 2026 and 2025, in millions","excerpt":"Subscription and Support Revenues by Service Offering Subscription and support revenues consisted of the following (in millions): Three Months Ended July 31, 2026 As a % of Total Subscription and Support Revenues 2025 As a % of Total Subscription and Support Revenues Growth Rate Agentforce Apps $ 7,193 67 % $ 6,682 69 % 8 % Data 360, Headless Platform, and Other 3,618 33 3,008 31 20 Hedging gains 9 0 0 — N/A Total $ 10,820 100 % $ 9,690 100 % 12 % Six Months Ended July 31, 2026 As a % of Total Subscription and Support Revenues 2025 As a % of Total Subscription and Support Revenues Growth Rate Agentforce Apps $ 14,102 66 % $ 13,027 69 % 8 % Data 360, Headless Platform, and Other 7,299 34 5,960 31 22 Hedging gains 12 0 0 — N/A Total $ 21,413 100 % $ 18,987 100 % 13 % Effective as of the first quarter of fiscal year 2027, we have revised the presentation of our disaggregated revenue disclosures to reflect the evolution of our product architecture to deliver the Agentic Enterprise."},{"id":"completion-6b41a5589771-e1","sourceId":"filing-2","location":"Significant judgments: pricing practices used to determine standalone selling prices","excerpt":"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."},{"id":"completion-6b41a5589771-e2","sourceId":"filing-7","location":"Investor Day: customer ARR expansion from Q2 FY25 through Q2 FY27","excerpt":"Manufacturing Customer High correlation of AI adoption in scaled growth customers across industries Agentic enterprise expansion in action AI shows up in +80% of our top 100 growth stories x ARR Financial Services Customer Q2 FY25 Q2 FY27 A R R 2.3x ARR Automotive Customer Q2 FY25 Q2 FY27 A R R 1.3x ARR $36M $42M Cybersecurity Customer Q2 FY25 Q2 FY27 A R R 1.5x ARR $50M Agentforce & premium upgrades Q2 FY25 Q2 FY27 A R R 6.5x ARR $20M Public Sector Customer Q2 FY25 Q2 FY27 A R R 4.0x ARR $9M Professional Services Customer Q2 FY25 Q2 FY27 A R R 4.5x ARR $15M Agentforce, premium upgrades & flex credits, Data 360, & more Core licenses Agentforce, premium upgrades, Data 360, & more Core license Flex credits & more Core licensesData 360 & more Core licenses Agentforce, premium upgrades, Data 360, & more Core licenses Agentforce, premium upgrades, & more Core licenses More Core licenses & Data 360 Agentforce, premium upgrades & flex credits, Data 360, & more Core licenses Each customer ARR multiplier based on 2 year expansion from Q2 FY25 through Q2 FY27."},{"id":"completion-6b41a5589771-e3","sourceId":"filing-2","location":"Revenue discussion: Informatica acquisition contribution","excerpt":"36 Table of Contents The acquisition of Informatica in November 2025 contributed approximately $456 million and $900 million of total revenues for the three and six months ended July 31, 2026, respectively."},{"id":"completion-6b41a5589771-e4","sourceId":"filing-7","location":"Investor Day: ARR uplift associated with scaling AI usage","excerpt":"Outside of the top 100, ARR grows meaningfully faster as customers scale their AI usage across Salesforce >2x ARR uplift in 18 months since Agentforce launch A R R U pl if t ARR upli driven by AI, Data 360, Customer 360"}],"changes":["Retain the previous narrow switching-cost verdict; the supplied passages support operational embedding without establishing a wide moat.","Incorporate July 2026 subscription growth, continued absence of contract-cost impairments, weaker transformation engagement demand and consumption-pricing complexity.","Add assessments grounded in actual compensation and governance disclosures, and temper capital-discipline confidence for substantial debt issuance accompanying repurchases."],"limitations":["All source dates are filing dates (dateKind=filed); the latest supplied filing is dated August 27, 2026. No later performance is assumed.","No company is identified as a business competitor in the supplied passages. Compensation peers, customers, acquired businesses and suppliers are not treated as established competitors.","Customer deployment outcomes and platform benefits are issuer-reported. Migration costs, competitive win rates, cohort renewals and customer retention rates are absent.","Pricing practices disclose discretion and discounting, but no comparable realized price trend or price-volume decomposition. Revenue growth and margin expansion cannot establish realized pricing power.","Accounting benefit periods incorporate management estimates. Absence of contract-cost impairment supports recoverability but does not measure loyalty or switching costs.","Actual compensation design and annual achievement are disclosed, but complete executive ownership and final multi-year award payouts are not established. Proposed plan amendments are not treated as adopted or vested.","Acquisition contributions complicate organic-demand assessment; disclosed acquisition spending and repurchases do not establish attractive investment returns."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":2,"rationale":"Integrated data, business logic and deployed workflows support switching friction. Customer usage supplies concrete evidence of embedding, but replacement difficulty and competitive superiority are not quantified.","evidenceIds":["e1","e2","e3","e5"]},{"criterion":"durability","grade":2,"rationale":"Multi-year contracts, renewal-inclusive benefit estimates and no contract-cost impairments support persistence. 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