AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · 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.
durability · 2/4 · Multi-year contracts, renewal-inclusive benefit estimates and no contract-cost impairments support persistence. These are limited by renewal freedom and uncertain AI monetization; no exceptional durability is demonstrated.
customer dependency · 3/4 · Reported handling of material customer-service volumes and daily sales workflows demonstrates meaningful operational dependence in particular deployments. This does not establish equivalent dependence across every customer or offering.
erosion resilience · 2/4 · Subscription growth and recoverable contract costs support continuing demand despite ordinary nonrenewals. Weaker transformation demand and emerging pricing complexity temper resilience; generic risks are not treated as realized displacement.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Discounting and differentiated pricing are disclosed, but their realized direction and economic effect cannot be separated from volume, mix and acquisitions. Neither demonstrated pricing strength nor realized pricing deterioration is established.
retention · 2/4 · Assessed indirectly from subscription growth, renewal-inclusive benefit estimates and absence of contract-cost impairments. These support repeat demand without identifying cohort retention; some actual nonrenewals are disclosed.
margin resilience · 3/4 · Fiscal 2026 operating margin improved to approximately 20% from 19% while revenue grew. This demonstrates operating resilience, although restructuring contributed and the evidence does not isolate pricing effects or establish resilience through a full cycle. AI cost risks remain prospective.
contractual freedom · 2/4 · Salesforce sets differentiated pricing practices and can modify them, while noncancellable contracts protect contracted revenue. Enterprise negotiation demands and expiration-based customer freedom constrain discretion; unilateral repricing of existing contracts is not established.
Predictability95
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 3.79
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 6.16
Financial strength71
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 99.96
- netDebtEbitGrade
- 82.93
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 0.83
- Debt / FCF (x)
- 1.00
- Net debt / operating income (x)
- 0.85
- Interest coverage (x)
- 25.71
- Current ratio (x)
- 0.76
Capital allocation77
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 11.06
- 3-year average dilution (%)
- -1.43
- 3-year average SBC / revenue (%)
- 8.28
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Operating cash generation increased, but first-half repurchases of $27.3 billion accompanied $24.8 billion of net debt issuance, with additional acquisition spending and $33.3 billion of senior notes outstanding. This is mixed evidence of discipline; acquisition returns and repurchase value creation remain unproven.
incentive alignment · 2/4 · Advance goal setting, performance-conditioned awards and a prohibition on hedging support alignment. Disclosed annual achievement includes a below-target result, but final multi-year payouts remain pending. Substantial reported compensation and incomplete ownership coverage limit a stronger conclusion.
execution · 3/4 · Realized revenue growth, improved operating margin, higher operating cash generation and reported customer deployments support strong execution. This is partly indirect operating evidence: acquisitions contributed revenue, historical sales changes reduced productivity, and AI monetization remains uncertain.
governance · 3/4 · An independent compensation committee, annual Board evaluation with an independent facilitator, equal common-share voting rights and audited internal-control processes provide concrete governance support. These practices do not establish exceptional oversight or eliminate combined chair/CEO and compensation concerns.
Evidence
Our platform provides the essential “landing zone” for agents, integrating trusted data, business logic, and secure workflows.
CEO letter / platform integration description · Filed 16/04/2026
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.
CEO letter / reported customer deployment · Filed 16/04/2026
Siemens is using sales agents to qualify 500 leads daily, saving 1,200 hours per human agent annually.
CEO letter / reported customer usage and productivity · Filed 16/04/2026
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.
Revenue contract costs / estimated benefit including renewals · Filed 27/08/2026
The capitalized amounts are recoverable through future revenue streams under all noncancellable customer contracts.
Revenue contract costs / noncancellable contracts · Filed 27/08/2026
There were no impairments of costs to obtain revenue contracts for the three and six months ended July 31, 2026 and 2025.
Revenue contract costs / absence of impairments · Filed 27/08/2026
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.
MD&A / subscription and support revenue share · Filed 27/08/2026
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.
MD&A / subscription and support revenue growth by offering · Filed 27/08/2026
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.
Risk factors / contract duration and actual nonrenewals · Filed 27/08/2026
Our customers may renew for fewer subscriptions, renew for shorter contract lengths or switch to lower cost offerings of our services.
Risk factors / renewal and downgrade flexibility · Filed 27/08/2026
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.
Risk factors / consumption pricing complexity · Filed 27/08/2026
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.
Risk factors / enterprise pricing and packaging demands · Filed 27/08/2026
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.
MD&A / realized decline in transformation engagement demand · Filed 27/08/2026
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.
Revenue recognition / actual pricing and discounting practices · Filed 27/08/2026
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.
Revenue recognition / ability to modify pricing practices · Filed 27/08/2026
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.
MD&A / fiscal 2026 and fiscal 2025 operating margins · Filed 02/03/2026
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.
Restructuring note / actual restructuring charges · Filed 02/03/2026
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.
Risk factors / potential AI compliance and operating costs · Filed 27/08/2026
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.
MD&A / operating cash generation and noncash adjustments · Filed 27/08/2026
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.
MD&A / actual repurchases, dividends and debt issuance · Filed 27/08/2026
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.
Debt / senior unsecured notes outstanding · Filed 27/08/2026
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 $871 million.
MD&A / acquisition spending · Filed 27/08/2026
•Set “Margin & Growth” goals for fiscal 2026, 2027, and 2028 at grant, eliminating previous delays in goal setting.
Compensation discussion / advance setting of performance goals · Filed 16/04/2026
Fiscal 2025 Operating Margin PRSUs (Granted in March 2024) Performance Level Fiscal 2025 Non-GAAP Operating Margin(1) Goals Actual Fiscal 2025 Performance(1) Fiscal 2026 Non-GAAP Operating Margin(2) Goals Actual Fiscal 2026 Performance (Set in March 2024) Threshold ≥ 27.6% 33.0% ≥ 29.3% 33.9% Target ≥ 32.5% ≥ 34.5% Maximum ≥ 37.4% ≥ 39.7% Vesting Achievement Percentage(3) 110%(1) 91% 1.As previously disclosed in our 2025 Proxy Statement.
Compensation discussion / granted awards and annual performance achievement · Filed 16/04/2026
3.The average of the annual vesting achievement percentages for each fiscal year in the three-year performance period will be used to determine the final payout percentage for the Operating Margin PRSUs.
Compensation discussion / distinction between annual achievement and final payout · Filed 16/04/2026
No hedging or pledging of our securities
Compensation governance / prohibition on hedging and pledging · Filed 16/04/2026
Name and Principal Position Fiscal Year Salary ($) 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.
Summary Compensation Table / reported executive compensation · Filed 16/04/2026
•Revenue: For fiscal 2026, revenue was $41.5 billion, an increase of ten percent year-over-year.
MD&A / realized fiscal 2026 revenue growth · Filed 02/03/2026
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.
MD&A / acquired revenue contribution · Filed 27/08/2026
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.
Risk factors / historical sales reorganization productivity reductions · Filed 02/03/2026
All committee members are independent under NYSE listing standards and SEC rules.
Compensation Committee / member independence · Filed 16/04/2026
The Governance Committee, with oversight from our Lead Independent Director, leads a formal self-evaluation process on an annual basis.
Governance / annual Board evaluation process · Filed 16/04/2026
The Board engages an independent third-party consultant, experienced in corporate governance matters, to facilitate a robust assessment process.
Governance / independent evaluation facilitator · Filed 16/04/2026
All of our stockholders have one vote for every share of Salesforce common stock owned as of our record date of April 6, 2026.
Voting rights / one vote per common share · Filed 16/04/2026
Based on the results of our evaluation, our management concluded that our internal control over financial reporting was effective as of January 31, 2026.
Controls and procedures / management effectiveness conclusion · Filed 02/03/2026
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.
Controls and procedures / external audit of internal controls · Filed 02/03/2026
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.
Risk factors / uncertainty of AI offering monetization · Filed 27/08/2026
