Salesforce, Inc. (CRM) FY2026 10-K and Q2 FY2027 10-Q Summary

Business

From the fiscal 2026 Form 10-K, accession 0001108524-26-000060.

Salesforce sells customer relationship management ("CRM") software to businesses worldwide, predominantly on a subscription basis, through a direct sales force and indirectly through partners. The company was founded in 1999 and had 83,334 employees at January 31, 2026. It reports as a single operating segment, so no segment profitability breakdown exists.

How it makes money. Revenue comes from two sources: subscription and support, and professional services and other. Subscription and support was approximately 95 percent of total revenue in fiscal 2026. Subscription contracts typically run 12 to 36 months and are generally invoiced annually in advance, with payment due within about 30 days; revenue is recognised ratably over the contract term. A minority of subscription and support revenue, around six percent in fiscal 2026 and fiscal 2025, and four to five percent in the fiscal 2027 periods, comes from term software licences, which are recognised at a point in time when the software is made available and therefore make those offerings lumpier quarter to quarter. Because revenue is recognised over the subscription term, a change in new or renewed business in any one quarter shows up largely in later quarters rather than the current one.

Billings are heavily weighted to the fiscal fourth quarter, which the company describes as its strongest quarter for new business and renewals; the fiscal first quarter is consequently its largest collections and operating cash flow quarter, and the second or third quarter historically its smallest.

The product portfolio. Salesforce frames its entire line-up around the "Agentforce 360 Platform," an AI layer it says is embedded across every application. The company's own description of the components:

• Agentforce Sales, sales prospecting, engagement, analytics, performance, partner

management and revenue/orders, with AI agents alongside human sellers.

• Agentforce Service, customer, employee, IT and field service on one platform, with

agents routing cases, answering with company-grounded data, and summarising cases and work orders.

• Agentforce 360 Platform, Slack and Other, low-code/no-code application, workflow and

agent building; a "Trust Layer" governing what agents may do with customer data; and Hyperforce, the infrastructure layer offering local data residency.

• Data 360, the data engine that gives agents context, connecting enterprise data across

clouds and systems using zero-copy access, and unifying structured records with unstructured content (emails, documents, conversations).

• Informatica, acquired in November 2025 (fiscal 2026 fourth quarter); an enterprise data

management platform covering data integration, quality, governance, master data and metadata management, and catalog services across hybrid and multi-cloud environments.

• Slack, positioned as the conversational interface where people and agents work together,

now including "Slackbot," an out-of-the-box employee agent.

• Agentforce, the tooling to build, deploy, govern and observe autonomous agents,

connecting model reasoning to Salesforce metadata, workflows and MuleSoft APIs.

• Agentforce Marketing and Agentforce Commerce, campaign generation, segmentation,

personalisation; and connected commerce with agent-run tasks such as recommendations and order lookup.

• Agentforce Integration (MuleSoft) and Agentforce Analytics (Tableau), API management and

automation, plus visualisation and semantics that agents can act on.

• Industries and Starter Suite, vertical offerings for financial services, healthcare and

life sciences, manufacturing, automotive and government among others; and an all-in-one bundle for small and medium businesses.

Revenue by offering. In fiscal 2026 the company reported five offering lines (in millions): Agentforce Service $9,818; Agentforce Sales $9,028; Agentforce 360 Platform, Slack and Other $8,882; Agentforce Integration and Agentforce Analytics $6,232; and Agentforce Marketing and Agentforce Commerce $5,428, totalling $39,388 of subscription and support revenue. The Platform/Slack/Other line grew fastest at 23 percent, aided by $388 million of Informatica subscription revenue; Marketing and Commerce grew 3 percent.

Effective with the first quarter of fiscal 2027, Salesforce collapsed this disclosure into two categories: Agentforce Apps (Sales, Service, Marketing, Commerce, Agentforce Apps Flex Credits and Slack) and Data 360, Headless Platform, and Other (Data 360, Data 360 and Platform Flex Credits, Headless Platform, Informatica, Agentforce MuleSoft, Agentforce Tableau and Other). Prior periods were reclassified; total subscription and support revenue was unaffected. The change removes the ability to track the old five lines going forward.

Revenue by geography. Fiscal 2026: Americas $27,193 million (65 percent), Europe $10,017 million, Asia Pacific $4,315 million. Geography is assigned by the region of the contracting entity rather than the customer. About 93 percent of Americas revenue was attributed to the United States. No customer accounted for more than ten percent of revenues in fiscal 2026, 2025 or 2024, and no country other than the U.S. exceeded ten percent of total revenue.

Delivery model. Services run on a multi-tenant architecture, one application instance serving many customers in virtual isolation, delivered partly through third-party Infrastructure-as-a-Service cloud platform providers and partly through infrastructure Salesforce designs and operates inside third-party data centres.

Growth strategy, as management states it: expand within existing customers through cross-sell and upsell; increase geographic reach; build industry-specific and new-category products; leverage the partner ecosystem (ISVs, system integrators, the AppExchange marketplace); and promote adoption to reduce attrition. Attrition, the reduction or loss of annualised contract value, measured on a trailing twelve-month basis, was approximately eight percent at January 31, 2026 (excluding Slack self-service and current-year acquisitions) and approximately eight percent at July 31, 2026 (excluding Slack self-service, Informatica and current-year acquisitions).

Acquisitions and strategic investments are explicit parts of the strategy. Management states its goal is "to prioritize the use of our balance sheet, through cash and debt, to complete acquisitions." Separately, Salesforce runs a strategic investment portfolio in privately held and publicly traded companies, over 450 companies with a combined carrying value of $7.6 billion at January 31, 2026, rising to $11.3 billion at July 31, 2026. This portfolio has become a material driver of reported earnings (see Current quarter).

Competition. The 10-K names packaged business software vendors and on-premises enterprise application vendors; AI-native companies and startups whose architectures are built on generative AI and large language models and which "may bypass traditional business process workflows or displace established user interfaces"; free or bundled software providers; point-solution vendors in analytics, integration, marketing and e-commerce; productivity, email and unified-communications providers moving into business software; and cloud development platform companies, plus prospective customers who build internally.

Risk factors

Condensed from Item 1A of the fiscal 2026 Form 10-K (accession 0001108524-26-000060) and Part II, Item 1A of the Q2 fiscal 2027 Form 10-Q (accession 0001108524-26-000190). Boilerplate omitted.

Security and service reliability. Salesforce stores and transmits customers' proprietary, financial, health and other personal data. The filings state that its services and infrastructure "have in the past and may in the future be breached or compromised," and that the company and its customers are routinely targeted. Named vectors include social engineering, ransomware and supply-chain attacks by criminal and state-sponsored actors, zero-day exploitation, vulnerabilities introduced by acquisitions, and employee or contractor error. The Q2 fiscal 2027 filing adds that frontier AI models may let attackers find unknown vulnerabilities and automate multi-stage attack chains, compressing the time available to patch and potentially forcing more frequent emergency remediation. Separately, defects and service disruptions have occurred and could recur; the quarterly filing notes AI models are probabilistic and that agent behaviour cannot be predicted with complete accuracy, so agentic AI use "may result in unanticipated outcomes that disrupt our systems or those of our customers."

Third-party infrastructure dependence. Delivery depends on third-party data centres and cloud platform providers, and on large language models licensed from third parties. Those inputs may cease to be available at reasonable prices or at all; the quarterly filing adds that access to frontier models may be suddenly suspended or restricted by providers or governments on safety or regulatory grounds. Data centre power, land and water constraints, and public or governmental opposition to data centres, could limit capacity expansion.

AI-specific exposure, commercial and regulatory. The markets and monetisation strategies for Agentforce and Data 360 are described as "relatively new and uncertain." Both are sold in part on a consumption basis, and the company says it has limited experience setting optimal pricing for consumption contracts and may see lower consumption than expected. AI outputs may be inaccurate, biased or unsafe, or may implicate privacy, security or intellectual property rights, including generation of copyrighted material. AI-specific legal frameworks named include the EU AI Act, the Utah Artificial Intelligence Policy Act, Colorado's automated decision-making law (SB 26-189), the Texas Responsible Artificial Intelligence Governance Act and CCPA automated decision-making regulations. Intellectual property in AI-created works is unsettled: if the position that copyright and patent protection is limited to human-created works becomes widely accepted, protection may be limited or unavailable for AI-developed inventions, and AI training or output may expose the company to infringement claims.

Competition and technology pace. The market is described as highly competitive, fragmented, rapidly evolving and subject to low barriers to entry. Competitors may have greater resources and larger installed bases, or may be smaller and more agile; and competitors may incorporate AI more efficiently or achieve faster adoption. New AI offerings "may disrupt our service offerings or transform workforce needs and negatively impact demand for our offerings."

Renewals, attrition and forecasting. Customers have no obligation to renew. They may renew for fewer subscriptions, shorter terms, or lower-cost offerings. The quarterly filing adds that the shift toward consumption-based and "AI-driven consumption" pricing makes attrition and revenue harder to forecast. Because revenue is recognised over the subscription term, deterioration in bookings is not visible in the current quarter's revenue.

Acquisition integration and financing. Acquisitions may fail to deliver expected benefits, prove difficult to integrate, dilute stockholders, or require debt or equity financing on unfavourable terms, with the Informatica credit agreements cited as the example. Acquisition capability may also be impaired by trade tensions and heightened government scrutiny of technology-sector acquisitions.

Strategic investment portfolio volatility. All investments carry a risk of partial or total loss. Privately held securities are valued using significant unobservable inputs and management judgment; carrying values change only on observable price changes for the same or a similar security, or on impairment. The Q2 fiscal 2027 filing adds a concentration warning: concentrations "in specific industry sectors, such as emerging technology and AI, or in one or more specific companies, could increase our exposure to such volatility." Resulting gains or losses "have been and could be material."

Debt service and capital structure. As of July 31, 2026 the company describes a substantial level of outstanding debt, including senior notes, the $5.0 billion revolving credit facility (undrawn) and the 2026 Term Loan Credit Agreement. It flags that indebtedness could impair future financing, dedicate a substantial portion of operating cash flow to debt service, and make the company more vulnerable to downturns; that credit rating downgrades could raise refinancing costs; and that indenture and credit agreement covenants restrict it. The quarterly filing adds that under the accelerated share repurchase agreements, stock price volatility may oblige Salesforce to deliver additional shares or make a cash payment to the counterparty at final settlement.

Privacy, data transfer and sector regulation. GDPR, the CCPA and a growing list of state and national regimes (including India's Digital Personal Data Protection Act 2023) impose obligations on Salesforce as both controller and processor. EU-to-U.S. transfers remain uncertain following the CJEU's invalidation of Privacy Shield; it is uncertain whether the EU-U.S. Data Privacy Framework will withstand challenge. Data localisation requirements are spreading. Sector rules, for example DORA in EU financial services, may restrict customers' ability to adopt cloud services. A GDPR/Dutch Telecommunications Act proceeding brought by the Privacy Collective remains pending before the Dutch Supreme Court.

Litigation. Salesforce is subject to securities class action and derivative litigation inherited with Slack, and to a large and growing set of actions relating to a former customer affiliated with Backpage.com, in which plaintiffs allege the company's CRM software facilitated sex trafficking. Many of those actions have been stayed under 18 U.S.C. § 1595(b) pending final adjudication of criminal proceedings involving Backpage. The company states it intends to defend vigorously, that it cannot reasonably estimate possible losses in excess of amounts accrued, and that in management's opinion resolution of all current matters is not expected to have a material adverse impact on its financial statements.

Tax. Effective tax rates may fluctuate with domestic and foreign earnings mix and discrete items. The One Big Beautiful Bill Act could subject the company to Corporate Alternative Minimum Tax; its immediate deduction for domestic R&D favourably affects operating cash flow. On the OECD's Pillar Two 15 percent minimum tax, a January 2026 "side-by-side safe harbor" would, if elected, exempt U.S.-parented groups from certain provisions, but does not relieve foreign subsidiaries from jurisdiction-specific minimum taxes and must still be adopted into local law.

Other named risks. Currency exposure to the Euro, Sterling, Yen, Canadian and Australian dollars, Indian Rupee and Brazilian Real; longer, costlier sales cycles and pricing pressure with large enterprise and government customers; government contracting and procurement rules; export controls and sanctions; loss of key management or AI-experienced engineers; disruption from periodic sales-organisation changes; scaling strain, including the enterprise resource planning system implemented in the second quarter of fiscal 2026; weakened global economic conditions and their effect on IT spending; and quarterly result and share price volatility.

Management's discussion, fiscal 2026 (year ended January 31, 2026)

From Item 7 of the fiscal 2026 Form 10-K, accession 0001108524-26-000060.

Headline results. Revenue was $41.5 billion, up ten percent year over year, of which foreign currency contributed approximately one percentage point. Subscription and support revenue was $39,388 million, up ten percent; professional services and other revenue was $2,137 million, down four percent, which management attributes to less demand for larger, multi-year transformation engagements, a trend it says may continue in the near term. Management states the subscription increase was volume-driven, from new customers, upgrades and additional subscriptions, and that "pricing was not a significant driver."

Income from operations was $8.3 billion against $7.2 billion, lifting operating margin to approximately 20 percent from approximately 19 percent. Diluted net income per share was $7.80 versus $6.36. Cash provided by operations was $15.0 billion, up 15 percent. Total cash, cash equivalents and marketable securities were $9.6 billion at year end, against accounts receivable of $14.3 billion.

Backlog. Total remaining performance obligation was approximately $72.4 billion at January 31, 2026, up 14 percent; current remaining performance obligation, the portion expected to be recognised within twelve months, was approximately $35.1 billion, up 16 percent. Currency flattered the current figure by about three percentage points. Roughly $2.2 billion of the total related to Informatica.

Cost and expense drivers. Cost of revenues rose in absolute dollars on employee costs (including stock-based compensation) and service delivery, partly offset by lower purchased intangible amortisation; as a percentage of revenue it fell one point as revenue outgrew cost. Research and development, sales and marketing, and general and administrative expenses each rose in absolute dollars, principally on employee-related and stock-based compensation costs, and each was flat as a percentage of revenue. Sales and marketing also carried higher purchased intangible amortisation from Informatica. Restructuring charges were $586 million, mostly employee transitions, severance and benefits plus data centre exits; management said it did not expect significant additional charges in the near term. Looking forward, management guided that R&D would remain roughly constant as a share of revenue while sales and marketing and general and administrative "may decrease as a percentage of revenues over time."

Non-operating items. Net gains on strategic investments were $1.0 billion, driven by $1.5 billion of unrealised gains on privately held equity investments partly offset by $496 million of impairments; management notes $1.2 billion of the unrealised gains came from a single privately held investment. Other income declined on lower investment income from lower interest rates, and management flagged that interest expense would rise on the Informatica borrowings.

Tax. A $2.1 billion provision on $9.5 billion of pre-tax income. The effective rate rose year over year on lower benefits from the foreign-derived intangible income deduction and from stock-based compensation. The OBBBA had an immaterial effect on the fiscal 2026 provision.

Acquisitions. Salesforce completed two deals in fiscal 2026. Regrello Corp., an AI-native business process automation developer, closed in October 2025 for $818 million of consideration (primarily $815 million cash), producing $704 million of goodwill and about $140 million of developed-technology intangibles. Informatica, Inc. closed in November 2025 for approximately $9.6 billion of consideration, $9,538 million cash, $62 million for a pre-existing relationship and $36 million of assumed equity awards. The preliminary purchase price allocation recorded $5,257 million of goodwill and $3,818 million of intangible assets (developed technology, Cloud $1,350 million over seven years; developed technology, Other $270 million over three years; customer relationships $1,840 million over ten years; trade names $79 million; backlog $279 million), against $1,405 million of acquired cash, $651 million of assumed unearned revenue and a $443 million deferred tax liability. None of the goodwill is deductible for U.S. tax purposes. Informatica contributed $399 million of revenue and $24 million of pre-tax income from acquisition date to year end. On a pro forma basis as if the deal had closed at the start of fiscal 2025, fiscal 2026 revenue would have been $42,853 million and net income $7,382 million. The auditor identified valuation of the Informatica customer-relationship and developed-technology intangibles ($3.5 billion combined) as a critical audit matter. Management's assessment of internal control over financial reporting excluded Informatica and Regrello, which together represented approximately one percent of consolidated total assets and net assets and under one percent of revenues and operating expenses.

Cash flows. Operating cash flow of $15.0 billion comprised $7.5 billion of net income plus $3.6 billion of depreciation and amortisation and $3.5 billion of stock-based compensation, helped by a $2.9 billion increase in unearned revenue and $1.0 billion in payables and accrued liabilities, and offset by $2.2 billion of accounts receivable growth and $2.8 billion of costs capitalised to obtain revenue contracts. Investing outflows of $8.6 billion were mostly $9.3 billion for acquisitions (including $8.1 billion net for Informatica) and $1.8 billion net of strategic investment activity, less $3.0 billion of net marketable securities inflows; capital expenditure was $594 million. Financing outflows of $8.1 billion reflected $12.6 billion of share repurchases and $1.6 billion of dividends, offset by $6.0 billion drawn under the Informatica credit agreements and $1.0 billion from equity plans.

Capital structure at year end. Senior unsecured notes with a carrying value of $8.4 billion, maturing between April 2028 and July 2061, plus the full $6.0 billion drawn under the Informatica credit agreements. The $5.0 billion revolving credit facility, maturing October 2029, was undrawn. Salesforce repurchased approximately 50 million shares for approximately $12.7 billion in fiscal 2026 (against 30 million for $7.8 billion in fiscal 2025) and paid approximately $1.6 billion of dividends and dividend equivalents.

Commitments. Noncancellable minimum lease payments of approximately $3.6 billion, and other contractual commitments, chiefly with infrastructure service providers, of approximately $16.7 billion, of which $3.7 billion fell due within twelve months.

Current quarter, second quarter of fiscal 2027 (three months ended July 31, 2026)

From the Form 10-Q, accession 0001108524-26-000190, and the earnings release furnished as Exhibit 99.1 to the Form 8-K dated August 26, 2026, accession 0001108524-26-000187. Figures below are for the discrete three-month period unless stated as six-month or year-to-date.

Revenue. Total revenue was $11,345 million, up 11 percent from $10,236 million. Subscription and support was $10,820 million, up 12 percent; professional services and other was $525 million, down four percent on the same weakness in large multi-year transformation engagements. Informatica contributed approximately $456 million of total revenue in the quarter. Currency had a minimal effect on quarterly revenue. Under the new two-line presentation, Agentforce Apps was $7,193 million, up 8 percent and 67 percent of subscription revenue, while Data 360, Headless Platform, and Other was $3,618 million, up 20 percent and 33 percent, the growth is concentrated in the data and platform line, which is where Informatica sits. By geography: Americas $7,404 million (up 10 percent), Europe $2,764 million (up 14 percent), Asia Pacific $1,168 million (up 9 percent).

For the six months ended July 31, 2026, revenue was $22,478 million, up 12 percent, with Informatica contributing approximately $900 million.

Operating results were essentially unchanged year over year. Income from operations was $2,331 million against $2,332 million a year earlier, a GAAP operating margin of 20.5 percent. Cost of revenues rose to 23 percent of revenue from 22 percent, on service delivery spending including hosting services and generative AI technologies, and on acquired intangible amortisation. Research and development rose about one point as a share of revenue on the same drivers; sales and marketing was flat as a share of revenue, though in dollar terms it was still the largest increase of any expense line; general and administrative fell about one point as revenue outgrew it. Restructuring charges were $94 million in the quarter and $174 million for the six months. Amortisation of acquired intangibles was $522 million in the quarter, against $380 million a year earlier.

Net income nearly doubled on a non-operating item. Net income was $3,526 million against $1,887 million, and diluted earnings per share $4.29 against $1.96. The increase is not operational. Net gains on strategic investments were $2,613 million, against $6 million a year earlier, driven by $2.9 billion of unrealised gains on privately held equity investments less $285 million of impairments, and including $2.7 billion related to the company's investment in Anthropic. Salesforce states in its earnings release that strategic-investment gains added $2.43 to quarterly diluted EPS at a U.S. tax rate of 23.5 percent (and $2.87 to six-month diluted EPS). Working against that, interest expense rose to $473 million from $67 million on the March 2026 debt offering, and other income fell to $81 million from $135 million. The tax provision was $1,026 million; the six-month effective rate was 23 percent, up from 22 percent, primarily on stock-based compensation.

At July 31, 2026 the strategic investment portfolio carried $11.3 billion across more than 450 companies, of which Anthropic alone was approximately $5.1 billion. The five largest privately held positions totalled $7.0 billion; a ten percent fall in the enterprise value of those companies would reduce portfolio carrying value by roughly $641 million. This is now a materially concentrated, mark-to-market-driven source of reported earnings.

Capital structure was transformed in the first half. In March 2026 Salesforce issued $25.0 billion aggregate principal of unsecured senior notes with maturities from 2028 to 2066 and coupons ranging from 4.50 percent to 6.70 percent, raising $24.8 billion net of discounts and issuance costs. It separately entered a $6.0 billion five-year term loan maturing March 2031 and used it to refinance the $4.0 billion 364-day and $2.0 billion three-year Informatica credit agreements, a non-cash transaction excluded from the cash flow statement. Total debt carrying value rose from $14,439 million at January 31, 2026 to $39,288 million at July 31, 2026 ($39,500 million principal). The estimated fair value of outstanding senior notes rose to $30.8 billion from $6.7 billion. The $5.0 billion revolver remained undrawn, and the company was in compliance with all covenants.

The note proceeds funded an accelerated share repurchase. In March 2026 Salesforce paid $25.0 billion up front under accelerated share repurchase agreements and received an initial delivery of approximately 103 million shares at an average price of $198.34, about 80 percent of the total shares expected. It recorded $20.6 billion to treasury stock in the first quarter and a $4.6 billion reduction to additional paid-in capital for the unsettled forward component. In February 2026 the Board authorised $50.0 billion of repurchases, replacing the prior remaining authorisation; $22.9 billion remained available at July 31, 2026. On the cash flow statement's basis, repurchases of common stock were $27,332 million for the six months, $27,248 million in the first quarter, which carried both the $25.0 billion accelerated repurchase up-front payment and $2,145 million of open-market repurchases, and $84 million in the second quarter, none of which represents shares purchased in the open market. Salesforce bought back no shares in the open market in the second quarter itself, per the open-market repurchase table in the 10-Q, which shows nil shares for the three months ended July 31, 2026 against 11 million shares at an average $192.00 in the first quarter.

The combined effect: total stockholders' equity fell from $59,142 million at January 31, 2026 to $38,378 million at July 31, 2026, and shares outstanding fell from 929 million to 823 million. Weighted average diluted shares were 821 million for the quarter against 962 million a year earlier, so the year-over-year EPS gain reflects a materially smaller share count as well as the investment gains. Salesforce states the accelerated repurchase benefited six-month diluted EPS by $0.57. Some 42 million shares relating to the unsettled ASR component were excluded from diluted EPS as anti-dilutive.

Backlog fell sequentially but grew year over year. Remaining performance obligation was $66.3 billion at July 31, 2026, down from $72.4 billion at January 31, 2026 but up 11 percent year over year, the sequential decline reflects the fourth-quarter-weighted billing cycle. Current remaining performance obligation was $33.5 billion, up 14 percent year over year and in constant currency; the company describes this as an acceleration. Unearned revenue fell to $18,787 million from $24,317 million at year end, again seasonal.

Cash flow and liquidity. Operating cash flow for the quarter was $1,269 million and free cash flow (operating cash flow less capital expenditure of $171 million) $1,098 million; the earnings release describes these as up 71 percent and 81 percent year over year respectively. For the six months, operating cash flow was $7,970 million, up 10 percent, and financing activities used $3,543 million net. Cash, cash equivalents and marketable securities were $11.4 billion at July 31, 2026; accounts receivable was $6.3 billion, reflecting collection of the year-end billing peak. Dividends of $0.44 per share were declared in each of the first two quarters of fiscal 2027, up from $0.416 per share a year earlier; payments of dividends and dividend equivalents were $364 million in the second quarter and $729 million for the six months. Expected future stock-based compensation on outstanding awards was $8.3 billion.

Acquisitions. In April 2026 Salesforce acquired Qualified.com, Inc., an agentic AI marketing solutions provider, for $1.2 billion of consideration (primarily $1.1 billion cash), recording $954 million of goodwill and approximately $290 million of intangibles for developed technology and customer relationships. Goodwill rose to $59,250 million at July 31, 2026 from $57,941 million; acquired intangibles net fell to $6,142 million from $6,815 million as amortisation outpaced additions. Two further transactions were signed but not closed as of the quarter end and are covered under Subsequent events below.

Company-reported operating metrics. In its earnings release Salesforce reported combined Agentforce and Data 360 annual recurring revenue of nearly $3.9 billion, up over 210 percent year over year, and Agentforce ARR above $1.5 billion, up over 240 percent, noting that effective in this quarter, Agentforce ARR was redefined to include its AI offerings, Slackbot and Headless 360, which makes the growth rate not strictly comparable. It also reported 3.2 billion "Agentic Work Units" delivered in the quarter and 7.0 billion to date, Slack's fastest quarterly net new annual order value growth since acquisition with Slackbot users up over 150 percent sequentially, and 104 trillion records ingested by Data 360 in the quarter. These are company-defined measures not drawn from the financial statements and are not independently verifiable from the filings. Management also cited "non-GAAP operating margin of 34.1 percent" and non-GAAP diluted EPS of $5.90; the reconciling items are amortisation of purchased intangibles, stock-based compensation, restructuring and acquisition-related costs.

Guidance (from the August 26, 2026 earnings release):

• Third quarter fiscal 2027 revenue of $11.42–$11.50 billion, up 11–12 percent year over year

and in constant currency, including slightly above four points of Informatica contribution; GAAP diluted EPS of $1.81–$1.83 and non-GAAP diluted EPS of $3.42–$3.44; current remaining performance obligation growth of approximately 14 percent.

• Full-year fiscal 2027 revenue raised to $46.1–$46.4 billion, up 11–12 percent (approximately

11 percent in constant currency), a $200 million raise attributed to $100 million of organic growth and $200 million from the pending Contentful and Fin acquisitions, less a $100 million currency headwind. Subscription and support revenue growth of slightly above 12 percent.

• Full-year GAAP operating margin guidance of 20.1 percent (non-GAAP 34.3 percent); GAAP diluted

EPS of $10.21–$10.25 (non-GAAP $16.67–$16.71); operating cash flow and free cash flow growth of approximately 4–5 percent; capital expenditure of approximately 1.5 percent of revenue.

• The guidance is conditional on the closing of the Contentful and Fin acquisitions, which

are incorporated into every metric except current remaining performance obligation. Guidance share counts reflect the 103 million shares already delivered under the accelerated repurchase but exclude any effect of its final settlement or further open-market buybacks. Projected EPS assumes no change in the value of the strategic investment portfolio, which management notes could be material either way.

Subsequent events

The Q2 fiscal 2027 Form 10-Q (accession 0001108524-26-000190) contains no separate subsequent-events note; the post-period-end and pending items disclosed by Salesforce are as follows.

Pending acquisitions, both expected to close in the third quarter of fiscal 2027.

• Contentful Global, Inc., agreement entered in May 2026 to acquire the provider of a

composable content platform for approximately $1.5 billion in cash, net of the value of shares Salesforce already owns and subject to customary purchase price adjustments, and conditional on regulatory approvals.

• Intercom, Inc. ("Fin"), agreement entered in June 2026 to acquire the customer agent

platform providing autonomous, end-to-end AI service agents for approximately $3.6 billion in cash, subject to customary purchase price adjustments and regulatory approvals.

In the August 26, 2026 earnings release, Salesforce stated it now expects both transactions to close independently "in the coming weeks," during the third quarter of fiscal 2027, and that both are embedded in its raised full-year guidance.

Accelerated share repurchase settlement. Final settlement of the $25.0 billion accelerated share repurchase agreements is expected in the third quarter of fiscal 2027; the earnings release specifies October 2026. The number of additional shares to be delivered, or any cash payment owed to the counterparties, depends on the volume-weighted average share price over the term.

Share repurchases. Salesforce disclosed in the 10-Q that subsequent to July 31, 2026 it had completed no additional repurchases under the Share Repurchase Program. $22.9 billion of the $50.0 billion February 2026 authorisation remained available.

Management change. On August 5, 2026 (Form 8-K, accession 0001108524-26-000160) Salesforce announced that Srini Tallapragada would step down as President and Chief Engineering and Customer Success Officer effective August 6, 2026, transitioning to Special Advisor to the Chief Executive Officer through August 6, 2027 to assist with the handover of his duties, product and technology matters, business development and customer relationships. Under a transition agreement, his cash compensation continues at his current salary rate plus annual bonus through January 31, 2027 and is then calculated on a rate of $75,000 per year; previously granted equity awards continue to vest through the transition period, which terminates automatically if he accepts full-time paid work elsewhere.