AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 31/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Integrated data, business logic, partner implementations and deployed workflows support switching friction. Concrete operational use corroborates the mechanism, but replacement costs and superiority over alternatives are unmeasured.
durability · 2/4 · Noncancellable subscriptions, typical multiyear terms and renewal-inclusive benefit estimates support persistence. Customers remain free at expiry and AI monetization is uncertain; these disclosures do not establish exceptional long-term durability.
customer dependency · 3/4 · Reported handling of substantial customer-service requests and daily lead qualification demonstrates meaningful operational dependence in specific deployments. Production task volumes corroborate engagement, but do not establish equivalent dependence across the entire customer base.
erosion resilience · 2/4 · Subscription growth, selected expansions and unimpaired contract acquisition costs support continuing demand despite ordinary nonrenewals. Acquisition contributions, weaker transformation demand and pricing complexity limit evidence of organic resilience against displacement.
Pricing power56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Reported premium upgrades within expanding customer contracts and growth in premium SKU bookings support realized monetization of richer offerings. This is indirect pricing evidence: selected customers and booking volumes combine price, mix and usage, while enterprise buyers demand flexibility. Sustained like-for-like price realization remains unestablished.
retention · 2/4 · Actual renewal-related commissions, subscription growth and selected customer expansions support repeat demand, assessed partly through indirect operating evidence. Renewal-inclusive estimates and no impairments corroborate persistence, but actual nonrenewals and absent representative cohort statistics prevent a stronger grade.
margin resilience · 3/4 · Historical revenue and operating-income growth through fiscal 2026, followed by a realized 20.5% Q2 fiscal 2027 GAAP operating margin, demonstrate operating resilience. Restructuring and cost control contributed; this does not isolate pricing effects. Potential AI costs remain prospective.
contractual freedom · 2/4 · Salesforce uses differentiated pricing and discounting practices and can modify those practices; noncancellable arrangements protect agreed revenue. Market conditions, enterprise negotiation demands and customer freedom at renewal constrain discretion. Unilateral repricing of existing contracts is not established.
Predictability95
5 consecutive published 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
- observedAnnualPeriods
- 5.00
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, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. 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, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; 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. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. 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 · Historical and interim operating cash generation provide demonstrated funding capacity. However, first-half repurchases of $27.3 billion accompanied $24.8 billion of net debt proceeds, alongside acquisition outflows, $33.3 billion of senior notes and substantial equity compensation commitments. Repurchase value creation and acquisition returns remain unproven.
incentive alignment · 2/4 · Goals established at grant, performance-dependent achievement and a hedging and pledging prohibition support alignment. Actual annual achievement includes a below-target outcome, while final multiyear payouts remain pending. Substantial reported executive compensation and incomplete ownership evidence limit a stronger assessment.
execution · 3/4 · Realized subscription growth, improved historical operating results, cash generation and reported operational deployments support strong execution. Assessment partly uses indirect operating evidence; acquisitions contributed revenue, historical sales changes reduced productivity, and AI monetization durability remains uncertain.
governance · 3/4 · Disclosed committee independence, annual Board evaluation with an independent facilitator, equal common-share voting rights and externally audited internal controls provide strong procedural evidence. They do not prove exceptional oversight; combined chair and CEO roles and substantial compensation temper the assessment.
Evidence
Our platform provides the essential “landing zone” for agents, integrating trusted data, business logic, and secure workflows.
Proxy statement / platform data, business logic and workflows · 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.
Proxy statement / reported Southwest Airlines deployment · Filed 16/04/2026
Siemens is using sales agents to qualify 500 leads daily, saving 1,200 hours per human agent annually.
Proxy statement / reported Siemens deployment · Filed 16/04/2026
Leverage our partner ecosystem. The Salesforce Platform enables customers, independent software vendors (“ISVs”) and third-party developers to create, test and deliver cloud-based applications.
Business / partner ecosystem and application development · Filed 05/03/2025
In addition, we rely on our consulting partners to deliver technology solutions and expertise to customers, from large-scale implementations to more limited solutions that help businesses run more efficiently.
Business / consulting partners and implementations · Filed 05/03/2025
Substantially all of the Company’s subscription service arrangements are noncancellable and do not contain refund-type provisions.
Revenue recognition / noncancellable subscription arrangements · Filed 27/08/2026
Capitalized amounts consist primarily of sales commissions paid to the Company’s sales force on new and renewal contracts, as well as the associated payroll and benefit costs.
Contract acquisition costs / new and renewal contracts · Filed 27/08/2026
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.
Contract acquisition costs / estimated renewal-inclusive benefit period · 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.
Contract acquisition costs / absence of impairments · 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
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.
Investor presentation / selected customer ARR expansion and premium upgrades · Filed 17/09/2026
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, renewal freedom 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 / potential subscription reductions and lower-cost offerings · 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 customer pricing and integration 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 / reduced transformation engagement demand · Filed 27/08/2026
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 / uncertain Agentforce and Data 360 monetization · Filed 27/08/2026
Top 100 growth stories defined by largest absolute dollar increases in year over year ARR change as of Q2 FY27.
Investor presentation / selection definition for top growth stories · Filed 17/09/2026
•Bookings from Agentforce One Edition and Agentforce for Apps, premium SKUs anchored in Sales and Service including the value from Agentic capabilities, more than doubled Q/Q
Company highlights / premium SKU bookings growth · Filed 26/08/2026
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 / discounting and differentiated pricing 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
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.
Historical reconciliation / fiscal 2022–2026 revenue, operating income and cash flow · Filed 17/09/2026
•GAAP operating margin of 20.5% and non-GAAP operating margin of 34.1%
Second-quarter results / realized operating margins · Filed 26/08/2026
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 governance 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 proceeds · 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.
MD&A / outstanding senior notes · 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 cash outflows · Filed 27/08/2026
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.
Stockholders' equity / equity awards and remaining compensation expense · Filed 27/08/2026
•Set “Margin & Growth” goals for fiscal 2026, 2027, and 2028 at grant, eliminating previous delays in goal setting.
Executive compensation / multiyear goals established at grant · 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.
Executive compensation / actual annual performance and vesting 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.
Executive compensation / final multiyear payout determination · Filed 16/04/2026
No hedging or pledging of our securities
Executive compensation / hedging and pledging prohibition · 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
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 / Informatica contribution to revenue · 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 organization productivity reductions · Filed 02/03/2026
All committee members are independent under NYSE listing standards and SEC rules.
Governance / 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 self-evaluation · 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 assessment 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
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 control effectiveness · Filed 02/03/2026
•7.0 billion Agentic Work Units (“AWUs”) delivered to date across Agentforce and Slack, with 3.2 billion in Q2, growing 97% quarter-over-quarter ("Q/Q")
Company highlights / reported production Agentic Work Units · Filed 26/08/2026
Effective Q2 FY27, Agentforce ARR includes our AI offerings, Slackbot and Headless 360
Company highlights / expansion of Agentforce ARR definition · Filed 26/08/2026
Business
Transformation
Marc Benioff (Chair & CEO)
Laura Alber
Amy Chang
Craig Conway
Arnold Donald (L)
Parker Harris
David B.
Board composition / combined chair and CEO roles · Filed 16/04/2026
