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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended October 31, 2025


☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission File Number: 001-32224

Salesforce, Inc.

(Exact name of Registrant as specified in its charter)


Delaware			94-3320693
(State or other jurisdiction of incorporation or organization)			(IRS Employer Identification No.)

Salesforce Tower

415 Mission Street, 3rd Fl

San Francisco, California 94105

(Address of principal executive offices)

Telephone Number: (415) 901-7000

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	CRM	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of November 28, 2025, there were approximately 937 million shares of the Registrant’s Common Stock outstanding.

Table of Contents

INDEX


		Page No.
	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements:

	Condensed Consolidated Balance Sheets as of October 31, 2025 and January 31, 2025	3

	Condensed Consolidated Statements of Operations for the three and nine months ended October 31, 2025 and 2024	4

	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended October 31, 2025 and 2024	5

	Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended October 31, 2025 and 2024	6

	Condensed Consolidated Statements of Cash Flows for the three and nine months ended October 31, 2025 and 2024	8

	Notes to Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43

Item 4.	Controls and Procedures	46

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	47

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69

Item 3.	Defaults Upon Senior Securities	69

Item 4.	Mine Safety Disclosures	69

Item 5.	Other Information	69

Item 6.	Exhibits	69

	Signatures	71

Table of Contents

PART I.

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Salesforce, Inc.

Condensed Consolidated Balance Sheets

(in millions)


	October 31, 2025		January 31, 2025

Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	8,978	$	8,848
Marketable securities	2,345		5,184
Accounts receivable, net	5,474		11,945
Costs capitalized to obtain revenue contracts, net	1,835		1,971
Prepaid expenses and other current assets	2,431		1,779
Total current assets	21,063		29,727
Property and equipment, net	3,147		3,236
Operating lease right-of-use assets, net	1,949		2,157
Noncurrent costs capitalized to obtain revenue contracts, net	2,293		2,475

Strategic investments	6,410		4,852
Goodwill	52,457		51,283
Intangible assets acquired through business combinations, net	3,491		4,428
Deferred tax assets and other assets, net	4,334		4,770
Total assets	$	95,144	$	102,928
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and other liabilities	$	5,850	$	6,658
Operating lease liabilities, current	564		579
Unearned revenue	14,996		20,743


Total current liabilities	21,410		27,980
Noncurrent debt	8,438		8,433
Noncurrent operating lease liabilities	2,137		2,380
Other noncurrent liabilities	3,138		2,962
Total liabilities	35,123		41,755

Stockholders’ equity:


Common stock	1		1
Treasury stock, at cost	(28,255)		(19,507)
Additional paid-in capital	67,448		64,576
Accumulated other comprehensive income (loss)	154		(266)
Retained earnings	20,673		16,369
Total stockholders’ equity	60,021		61,173
Total liabilities and stockholders’ equity	$	95,144	$	102,928

See accompanying Notes.

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Salesforce, Inc.

Condensed Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)


3	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Revenues:
Subscription and support	$	9,726	$	8,879	$	28,713	$	26,228
Professional services and other	533		565		1,611		1,674
Total revenues	10,259		9,444		30,324		27,902
Cost of revenues (1)(2):
Subscription and support	1,665		1,501		4,921		4,617
Professional services and other	590		604		1,841		1,809
Total cost of revenues	2,255		2,105		6,762		6,426
Gross profit	8,004		7,339		23,562		21,476
Operating expenses (1)(2):
Research and development	1,433		1,356		4,374		4,073
Sales and marketing	3,456		3,323		10,328		9,786
General and administrative	667		711		2,098		2,069
Restructuring	260		56		300		163

Total operating expenses	5,816		5,446		17,100		16,091
Income from operations	2,188		1,893		6,462		5,385


Gains (losses) on strategic investments, net	263		(217)		206		(217)
Other income	61		70		224		282
Income before provision for income taxes	2,512		1,746		6,892		5,450
Provision for income taxes	(426)		(219)		(1,378)		(961)
Net income	$	2,086	$	1,527	$	5,514	$	4,489

Basic net income per share	$	2.20	$	1.60	$	5.77	$	4.66
Diluted net income per share	$	2.19	$	1.58	$	5.73	$	4.60
Shares used in computing basic net income per share	948		956		955		963
Shares used in computing diluted net income per share	952		965		962		975

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


	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Cost of revenues	$	156	$	131	$	468	$	600
Sales and marketing	230		223		693		669

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


	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Cost of revenues	$	129	$	135	$	406	$	386
Research and development	271		278		826		814
Sales and marketing	296		312		874		911
General and administrative	109		95		291		267
Restructuring	14		0		29		2

See accompanying Notes.

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Salesforce, Inc.

Condensed Consolidated Statements of Comprehensive Income

(in millions)

(unaudited)


3	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Net income	$	2,086	$	1,527	$	5,514	$	4,489
Other comprehensive income, net of reclassification adjustments:
Foreign currency translation and other gains (losses)	94		4		384		(23)
Unrealized gains on marketable securities	16		9		44		27
Other comprehensive income, before tax	110		13		428		4
Tax effect	(3)		(2)		(8)		(4)
Other comprehensive income, net	107		11		420		0
Comprehensive income	$	2,193	$	1,538	$	5,934	$	4,489

See accompanying Notes.

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Salesforce, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(in millions)

(unaudited)













	Three and Nine Months Ended October 31, 2025
	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at January 31, 2025	1,056	$	1	(94)	$	(19,507)	$	64,576	$	(266)	$	16,369	$	61,173
Common stock issued	6	0		0	0		97		0		0		97
Common stock repurchased	0	0		(10)	(2,692)		0		0		0		(2,692)
Stock-based compensation	0	0		0	0		817		0		0		817
Other comprehensive income, net of tax	0	0		0	0		0		136		0		136
Cash dividends and dividend equivalents declared	0	0		0	0		0		0		(406)		(406)
Net income	0	0		0	0		0		0		1,541		1,541
Balance at April 30, 2025	1,062	$	1	(104)	$	(22,199)	$	65,490	$	(130)	$	17,504	$	60,666
Common stock issued	5	0		0	0		427		0		0		427
Common stock withheld related to net share settlement of equity awards	0	0		0	0		(12)		0		0		(12)
Common stock repurchased	0	0		(8)	(2,209)		0		0		0		(2,209)
Stock-based compensation	0	0		0	0		796		0		0		796
Other comprehensive income, net of tax	0	0		0	0		0		177		0		177
Cash dividends and dividend equivalents declared	0	0		0	0		0		0		(404)		(404)
Net income	0	0		0	0		0		0		1,887		1,887
Balance at July 31, 2025	1,067	1		(112)	(24,408)		66,701		47		18,987		61,328
Common stock issued	2	0		0	0		52		0		0		52
Common stock withheld related to net share settlement of equity awards	0	0		0	0		(127)		0		0		(127)
Common stock repurchased	0	0		(15)	(3,847)		0		0		0		(3,847)
Stock-based compensation	0	0		0	0		822		0		0		822
Other comprehensive income, net of tax	0	0		0	0		0		107		0		107
Cash dividends and dividend equivalents declared	0	0		0	0		0		0		(400)		(400)
Net income	0	0		0	0		0		0		2,086		2,086
Balance at October 31, 2025	1,069	$	1	(127)	$	(28,255)	$	67,448	$	154	$	20,673	$	60,021

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	Three and Nine Months Ended October 31, 2024
	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at January 31, 2024	1,035	$	1	(64)	$	(11,692)	$	59,841	$	(225)	$	11,721	$	59,646
Common stock issued	7	0		0	0		352		0		0		352
Common stock repurchased	0	0		(7)	(2,168)		0		0		0		(2,168)
Stock-based compensation	0	0		0	0		753		0		0		753
Other comprehensive loss, net of tax	0	0		0	0		0		(45)		0		(45)
Cash dividends declared	0	0		0	0		0		0		(388)		(388)
Net income	0	0		0	0		0		0		1,533		1,533
Balance at April 30, 2024	1,042	$	1	(71)	$	(13,860)	$	60,946	$	(270)	$	12,866	$	59,683
Common stock issued	5	0		0	0		384		0		0		384
Common stock repurchased	0	0		(18)	(4,322)		0		0		0		(4,322)
Stock-based compensation	0	0		0	0		813		0		0		813
Other comprehensive income, net of tax	0	0		0	0		0		34		0		34
Cash dividends declared	0	0		0	0		0		0		(388)		(388)
Net income	0	0		0	0		0		0		1,429		1,429
Balance at July 31, 2024	1,047	1		(89)	(18,182)		62,143		(236)		13,907		57,633
Common stock issued	3	0		0	0		148		0		0		148
Common stock repurchased	0	0		(5)	(1,232)		0		0		0		(1,232)
Stock-based compensation	0	0		0	0		823		0		0		823
Other comprehensive income, net of tax	0	0		0	0		0		11		0		11
Cash dividends declared	0	0		0	0		0		0		(385)		(385)
Net income	0	0		0	0		0		0		1,527		1,527
Balance at October 31, 2024	1,050	$	1	(94)	$	(19,414)	$	63,114	$	(225)	$	15,049	$	58,525

See accompanying Notes.

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Salesforce, Inc.

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)


3	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Operating activities:
Net income	$	2,086	$	1,527	$	5,514	$	4,489
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (1)	851		814		2,511		2,600
Amortization of costs capitalized to obtain revenue contracts, net	548		525		1,637		1,568
Stock-based compensation expense	819		820		2,426		2,380

(Gains) losses on strategic investments, net	(263)		217		(206)		217


Changes in assets and liabilities, net of business combinations:
Accounts receivable, net	123		655		6,472		6,681
Costs capitalized to obtain revenue contracts, net	(548)		(430)		(1,319)		(1,105)
Prepaid expenses and other current assets and other assets	396		(272)		(117)		(1,263)


Accounts payable and accrued expenses and other liabilities	0		32		(1,224)		(503)
Operating lease liabilities	(137)		(144)		(415)		(387)
Unearned revenue	(1,559)		(1,761)		(5,747)		(5,555)
Net cash provided by operating activities	2,316		1,983		9,532		9,122
Investing activities:
Business combinations, net of cash acquired	(978)		(179)		(1,032)		(517)
Purchases of strategic investments	(1,123)		(67)		(1,446)		(374)
Sales of strategic investments	68		13		112		118
Purchases of marketable securities	(366)		(1,239)		(3,570)		(5,041)
Sales of marketable securities	2,605		554		4,189		3,652
Maturities of marketable securities	452		905		2,317		2,439
Capital expenditures	(139)		(204)		(453)		(504)
Net cash provided by (used in) investing activities	519		(217)		117		(227)
Financing activities:


Repurchases of common stock	(3,801)		(1,285)		(8,659)		(7,753)
Payments for taxes related to net share settlement of equity awards	(127)		0		(139)		0
Proceeds from employee stock plans	239		321		765		1,056
Principal payments on financing obligations	(160)		(100)		(438)		(505)
Repayments of debt	0		0		0		(1,000)
Payments of dividends and dividend equivalents	(395)		(382)		(1,196)		(1,154)
Net cash used in financing activities	(4,244)		(1,446)		(9,667)		(9,356)
Effect of exchange rate changes	22		(5)		148		(14)
Net increase (decrease) in cash and cash equivalents	(1,387)		315		130		(475)
Cash and cash equivalents, beginning of period	10,365		7,682		8,848		8,472
Cash and cash equivalents, end of period	$	8,978	$	7,997	$	8,978	$	7,997

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

See accompanying Notes.

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Salesforce, Inc.

Condensed Consolidated Statements of Cash Flows

Supplemental Cash Flow Disclosure

(in millions)

(unaudited)


	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Supplemental cash flow disclosure:
Cash paid during the period for:
Interest	$	28	$	28	$	143	$	146
Income taxes, net of tax refunds	$	133	$	471	$	1,123	$	1,388

See accompanying Notes.

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Salesforce, Inc.

Notes to Condensed Consolidated Financial Statements

1. Summary of Business and Significant Accounting Policies

Description of Business

Salesforce, Inc. (the “Company”) is a global leader in customer relationship management technology that brings companies and customers together. With the deeply unified Salesforce Platform, the Company delivers a single source of truth, connecting customer data with integrated artificial intelligence (“AI”) across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. During the third quarter of fiscal 2025, the Company introduced Agentforce, a new layer of the trusted Salesforce Platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Since its founding in 1999, the Company has pioneered innovations in cloud, mobile, social, analytics and AI, enabling companies of every size and industry to transform their businesses in the digital-first world.

Fiscal Year

The Company’s fiscal year ends on January 31. References to fiscal 2026, for example, refer to the fiscal year ending January 31, 2026.

Basis of Presentation

The accompanying condensed consolidated balance sheet as of October 31, 2025 and the condensed consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for the three and nine months ended October 31, 2025 and 2024, are unaudited.

These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of October 31, 2025 and its results of operations, including its comprehensive income, stockholders' equity and cash flows for the three and nine months ended October 31, 2025 and 2024. All adjustments are of a normal recurring nature. The results for the three and nine months ended October 31, 2025 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2026.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2025.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto.

Significant estimates and assumptions made by management include the determination of:

•the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;

•the valuation of privately-held strategic investments;

•the fair value of assets acquired and liabilities assumed for business combinations;

•the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions;

•the useful lives of intangible assets; and

•the fair value of certain stock awards issued.

Actual results could differ materially from these estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, which forms the basis for making judgments about the carrying values of assets and liabilities as well as income and expenses to be recognized.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

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Segments

The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions which have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's service offerings operate on the Salesforce Platform and are deployed in a nearly identical manner, and the Company’s CODM evaluates the Company’s financial information and resources, and assesses the performance of these resources, on a consolidated net income basis. Additionally, the measure of segment assets is reported on the condensed consolidated balance sheet as total consolidated assets.

The Company’s significant segment expenses, which are the expenses included in operating income as well as gains (losses) on strategic investments, and other segment items, which includes other income and provision for income taxes, are included in the Company’s condensed consolidated statement of operations. Additionally, further components of the Company’s measure of profit or loss, which is net income, are included throughout the Company’s financial statements.

Concentrations of Credit Risk, Significant Customers and Investments

The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company’s marketable securities portfolio consists primarily of investment-grade securities and the Company’s policies limit the amount of credit exposure to any one issuer. The Company does not require collateral for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable for estimated credit losses. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. The Company records the allowance against bad debt expense through the condensed consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the condensed consolidated balance sheets. Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.

No single customer accounted for ten percent or more of accounts receivable as of October 31, 2025 and January 31, 2025. No single customer accounted for ten percent or more of total revenue during the three and nine months ended October 31, 2025 and 2024. As of October 31, 2025 and January 31, 2025, assets located outside the Americas were 15 percent and 17 percent of total assets, respectively. As of October 31, 2025 and January 31, 2025, assets located in the United States were 84 percent and 81 percent of total assets, respectively.

The Company is also exposed to concentrations of risk in its strategic investment portfolio, including within specific industries, as the Company primarily invests in enterprise cloud companies, technology startups and system integrators. As of October 31, 2025, the Company held three investments, all privately held, with carrying values that were individually greater than five percent of its total strategic investments portfolio and represented approximately 32 percent of the portfolio in the aggregate. As of January 31, 2025, the Company held four investments, all privately held, with carrying values that were individually greater than five percent of its strategic investments portfolio and represented approximately 24 percent of the portfolio in the aggregate.

Revenue Recognition

The Company derives its revenues from two sources: (1) subscription and support revenues and (2) professional services and other revenues. Subscription and support revenues primarily include subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term software licenses and support revenues from the sales of support and updates beyond the basic subscription or software license sales. Professional services and other revenues include professional and advisory services for process mapping, project management and implementation services and training services.

Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.

The Company determines the amount of revenue to be recognized through the application of the following steps:

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•identification of the contract, or contracts, with a customer;

•identification of the performance obligations in the contract;

•determination of the transaction price;

•allocation of the transaction price to the performance obligations in the contract; and

•recognition of revenue when or as the Company satisfies the performance obligations.

Subscription and Support Revenues

Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement.

Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Substantially all of the Company’s subscription service arrangements are noncancellable and do not contain refund-type provisions.

Subscription and support revenues also include revenues associated with term software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from software support and updates is recognized as the support and updates are provided, which is generally ratably over the contract term.

The Company typically invoices its customers annually and its payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred.

Professional Services and Other Revenues

The Company’s professional services contracts are either on a time and materials, fixed price or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Other revenues consist primarily of training revenues recognized as such services are performed.

Significant Judgments - Contracts with Multiple Performance Obligations

The Company enters into contracts with its customers that may include promises to transfer multiple performance obligations such as Cloud Services, software licenses, support and updates and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are concluded to be distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment.

Cloud Services, software licenses and support and updates services are generally concluded to be distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations are distinct.

The Company allocates the transaction price to each performance obligation on a relative SSP basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation.

The Company determines SSP by considering its overall pricing objectives and market conditions. 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. In instances where the Company does not sell or price a product or service separately, the Company maximizes the use of observable inputs by using information that may include market conditions. 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.

In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when indicated by the distribution of its observable prices.

Alternatively, the Company uses a range of amounts to estimate SSP when the pricing practices or distribution of the observable prices are highly variable. 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.

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Costs Capitalized to Obtain Revenue Contracts

The Company capitalizes incremental costs of obtaining revenue contracts related to noncancellable Cloud Services subscription, ongoing Cloud Services support and license support and updates. For contracts with term software licenses where revenue is recognized upfront when the software is made available to the customer, costs allocable to those licenses are expensed as they are incurred. Capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales force. Capitalized amounts also include other incentive-based compensation such as non-direct sales force payouts, renewal commissions, and associated payroll and benefit costs, and success fees paid to partners.

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. In arriving at this average period of benefit, the Company evaluates both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years.

The capitalized amounts are recoverable through future revenue streams under all noncancellable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment.

Amortization of capitalized costs to obtain revenue contracts is included in sales and marketing expense in the accompanying condensed consolidated statements of operations. There were no impairments of costs to obtain revenue contracts for the three and nine months ended October 31, 2025 and 2024.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.

Marketable Securities

The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the condensed consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses. Expected credit losses on securities are recognized in other income on the condensed consolidated statements of operations and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders' equity. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income within other income on the condensed consolidated statements of operations.

Strategic Investments

The Company holds strategic investments in publicly held equity securities, privately held equity securities and other investments in which the Company does not have a controlling interest.

Privately held equity securities where the Company lacks a controlling financial interest but does exercise significant influence are accounted for under the equity method. Privately held equity securities not accounted for under the equity method are recorded at cost and adjusted only for observable transactions for same or similar investments of the same issuer or impairment events (referred to as the measurement alternative). All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations. Other privately held investments not classified as debt or equity securities are recorded at cost and adjusted for impairment events, with any associated gains and losses recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations.

Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. The Company assesses its privately held strategic investments quarterly for impairment. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors, including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the

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investee is using its cash. If the investment is considered impaired, the Company estimates the fair value of the investment and recognizes any resulting impairment through the condensed consolidated statements of operations.

Publicly held equity securities are measured at fair value with changes recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations.

Fair Value Measurement

The Company measures its cash and cash equivalents, marketable securities, publicly held equity securities and foreign currency derivative contracts at fair value. In addition, the Company measures certain of its strategic investments, including its privately held equity securities, at fair value on a nonrecurring basis when there has been an observable price change in a same or similar security or an impairment event. The additional disclosures regarding the Company’s fair value measurements are included in Note 4 “Fair Value Measurement.”

Derivative Financial Instruments

The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk associated with intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. The Company uses forward currency derivative contracts, which are not designated as hedging instruments, to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Canadian Dollar, Australian Dollar, Brazilian Real and Japanese Yen. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivatives, which permit net settlement of transactions with the same counterparty, thereby reducing risk of credit-related losses from a financial institutions' nonperformance. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. The notional amount of outstanding foreign currency derivative contracts as of October 31, 2025 and January 31, 2025 was $13.3 billion and $10.7 billion, respectively.

Outstanding foreign currency derivative contracts are recorded at fair value on the condensed consolidated balance sheets. Unrealized gains or losses due to changes in the fair value of these derivative contracts, as well as realized gains or losses from their net settlement, are recognized as other income in the condensed consolidated statements of operations consistent with the offsetting gains or losses resulting from the remeasurement or settlement of the underlying foreign currency denominated receivables and payables.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:


Buildings and building improvements			10 to 40 years
Computers, equipment and software			3 to 5 years
Furniture and fixtures			5 years
Leasehold improvements			Shorter of the estimated lease term or 10 years

The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives.

When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.

Leases

The Company has entered into operating and finance leases for corporate offices, data centers, and equipment. The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s condensed consolidated balance sheets. Assets (also referred to as ROU assets) and liabilities recognized from finance leases are included in property and equipment, accrued expenses and other liabilities and other noncurrent liabilities, respectively, on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term. The corresponding lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for any asset classes.

Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement, net of any future tenant incentives. The Company has lease agreements which contain both lease and non-lease

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components, which it has elected to combine for all asset classes. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company’s lease terms may include options to extend or terminate the lease. Periods beyond the noncancellable term of the lease are included in the measurement of the lease liability only when it is reasonably certain that the Company will exercise the associated extension option or waive the termination option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company. As most of the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is an estimate of the interest rate the Company would have to pay to borrow on a collateralized basis with similar terms and payments, in the economic environment where the leased asset is located.

The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred or tenant incentives received prior to commencement.

Lease expense for operating leases, which includes amortization expense of ROU assets, is recognized on a straight-line basis over the lease term. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term and interest expense for finance lease liabilities is recognized based on the incremental borrowing rate. Expense for variable lease payments is recognized as incurred.

On the lease commencement date, the Company also establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are included in property and equipment, net and are amortized over the lease term.

The Company has entered into subleases or has made decisions and taken actions to sublease or discontinue use of certain leased assets. Similar to other long-lived assets discussed below, management tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to discontinue use prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease.

Intangible Assets Acquired through Business Combinations

Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.

Impairment Assessment

The Company evaluates intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, including, but not limited to, significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset group to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.

The Company evaluates and tests the recoverability of its goodwill for impairment annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable.

Business Combinations

The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations.

In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss to settle that relationship as of the acquisition date within operating income on the condensed consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value

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of the strategic investment is recorded as a gain or loss and recorded within gains (losses) on strategic investments, net in the condensed consolidated statements of operations.

Restructuring

The Company generally recognizes employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region where an employee works. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred.

Stock-Based Compensation Expense

Stock-based compensation expense is measured based on grant date at fair value using the grant date closing stock price for restricted stock units and restricted stock awards and using the Black-Scholes option pricing model for stock options and shares issued pursuant to the Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP”). The Company recognizes stock-based compensation expense related to restricted stock units, restricted stock awards, stock options and shares issued pursuant to the ESPP on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years for restricted stock units, restricted stock awards, and stock options, and the 12-month offering period for shares issued pursuant to the ESPP. The estimated forfeiture rate applied is based on historical forfeiture rates.

The Company grants performance-based restricted stock units and performance-based stock options to executive officers and other members of senior management, which may include a market condition, a performance condition, or both, in addition to a service condition. Stock-based compensation expense related to awards with a market condition are measured at fair value using a Monte Carlo simulation model and the expense related to these awards is recognized on a graded-vesting basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term. Stock-based compensation expense related to awards with a performance condition are measured based on the grant date closing stock price and the expense related to these awards is recognized based on the requisite service period elapsed, as well as the probability of achievement and estimated attainment of the performance condition as of the end of our reporting period.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the condensed consolidated statements of operations in the period that includes the enactment date.

The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision.

Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.

Foreign Currency Translation

The functional currency of the Company’s major foreign subsidiaries is generally the local currency. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the condensed consolidated statements of comprehensive income. Foreign currency transaction gains and losses are included in other income in the condensed consolidated statements of operations.

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Warranties and Indemnification

The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe on a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying condensed consolidated financial statements.

The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.

New Accounting Pronouncements Pending Adoption

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a retrospective or prospective basis. The Company is evaluating the effect that ASU 2023-09 will have on its financial statement disclosures.

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. The Company is evaluating the effect that ASU 2024-03 will have on its financial statement disclosures.

In September 2025, the FASB issued Accounting Standards Update 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025-06”), which provides targeted improvements to the accounting for internal-use software costs by replacing the existing project-stage model with a principles-based approach to determine when capitalization of costs should begin. ASU 2025-06 is effective for all entities for annual reporting periods beginning after December 15, 2027 on a prospective basis, with early adoption permitted. The Company is currently evaluating the effect that ASU 2025-06 will have on its financial statement disclosures.

2. Revenues

Disaggregation of Revenue

Subscription and Support Revenue by the Company's Service Offerings (1)

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


	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Agentforce Sales	$	2,297	$	2,119	$	6,695	$	6,188
Agentforce Service	2,495		2,288		7,287		6,727
Agentforce 360 Platform, Slack and Other	2,180		1,825		6,227		5,329
Agentforce Marketing and Agentforce Commerce	1,361		1,334		4,051		3,924
Agentforce Integration and Agentforce Analytics	1,393		1,313		4,453		4,060
	$	9,726	$	8,879	$	28,713	$	26,228

(1) In the third quarter of fiscal 2026, the Company renamed its service offerings to reference Agentforce. There were no changes in the allocation of revenue between these service offerings coming from this change.

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Total Revenue by Geographic Locations

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


	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Americas	$	6,703	$	6,220	$	19,908	$	18,483
Europe	2,470		2,228		7,236		6,557
Asia Pacific	1,086		996		3,180		2,862
	$	10,259	$	9,444	$	30,324	$	27,902

Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 93 percent during the three and nine months ended October 31, 2025 and 2024, respectively. No other country represented more than ten percent of total revenue during the three and nine months ended October 31, 2025 and 2024.

Contract Balances

Contract Assets

The Company records a contract asset when revenue recognized on a contract exceeds the billings. Contract assets were $976 million as of October 31, 2025 as compared to $724 million as of January 31, 2025, and are included in prepaid expenses and other current assets and deferred tax assets and other assets, net on the condensed consolidated balance sheets.

Unearned Revenue

Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The unearned revenue balance does not represent the total contract value of annual or multi-year, noncancellable subscription agreements. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.

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


	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Unearned revenue, beginning of period	$	16,555	$	15,222	$	20,743	$	19,003
Billings and other (1)	8,700		7,694		24,577		22,371

Revenue recognized over time	(9,833)		(9,023)		(28,727)		(26,446)

Revenue recognized at a point in time	(426)		(421)		(1,597)		(1,456)

Unearned revenue, end of period	$	14,996	$	13,472	$	14,996	$	13,472

(1) Other includes, for example, the impact of foreign currency translation as well as contributions from contract assets and business combinations.

The majority of revenue recognized for these services is from the beginning of period unearned revenue balance.

Revenue recognized over time primarily includes Cloud Services subscription and support revenue, which is generally recognized ratably over time, and professional services and other revenue, which is generally recognized ratably or as delivered.

Revenue recognized at a point in time substantially consists of term software licenses.

Remaining Performance Obligation

Remaining performance obligation represents contracted revenue that has not yet been recognized and includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. The transaction price allocated to the remaining performance obligation is based on SSP. Remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, the timing of term license deliveries, average contract terms and foreign currency exchange rates. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. Remaining performance obligation is subject to future economic risks, including bankruptcies, regulatory changes and other market factors.

The Company excludes amounts related to performance obligations from professional services contracts that are billed and recognized on a time and materials basis.

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The majority of the Company's noncurrent remaining performance obligation is expected to be recognized in the next 13 to 36 months.

Remaining performance obligation consisted of the following (in billions):


	Current		Noncurrent		Total
As of October 31, 2025	$	29.4	$	30.1	$	59.5
As of January 31, 2025	$	30.2	$	33.2	$	63.4

3. Investments

Marketable Securities

As of October 31, 2025, marketable securities consisted of the following (in millions):


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Corporate notes and obligations	$	1,431	$	10	$	0	$	1,441
U.S. treasury securities	168		2		0		170
Mortgage-backed obligations	33		0		(1)		32
Asset-backed securities	642		3		0		645
Municipal securities	26		0		0		26

Commercial paper	18		0		0		18

Covered bonds	1		0		0		1
Other	12		0		0		12
Total marketable securities	$	2,331	$	15	$	(1)	$	2,345

As of January 31, 2025, marketable securities consisted of the following (in millions):


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Corporate notes and obligations	$	2,574	$	6	$	(23)	$	2,557
U.S. treasury securities	546		0		(4)		542
Mortgage-backed obligations	128		0		(6)		122
Asset-backed securities	1,218		3		(4)		1,217
Municipal securities	108		0		(1)		107
Commercial paper	506		0		0		506

Covered bonds	29		0		(2)		27
Other	106		0		0		106
Total marketable securities	$	5,215	$	9	$	(40)	$	5,184

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


	As of
	October 31, 2025		January 31, 2025
Due within 1 year	$	462	$	2,081
Due in 1 year through 5 years	1,882		3,098
Due in 5 years through 10 years	1		5
	$	2,345	$	5,184

Interest income from marketable securities was $139 million and $145 million for the three months ended October 31, 2025 and 2024, respectively, and $457 million and $522 million for the nine months ended October 31, 2025 and 2024, respectively, and is included in other income in the condensed consolidated statements of operations.

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Strategic Investments

Strategic investments by form and measurement category as of October 31, 2025 were as follows (in millions):


	Measurement Category
	Fair Value		Measurement Alternative		Other		Total
Equity securities	$	68	$	6,120	$	178	$	6,366
Other investments	0		0		44		44
Balance as of October 31, 2025	$	68	$	6,120	$	222	$	6,410

Strategic investments by form and measurement category as of January 31, 2025 were as follows (in millions):


	Measurement Category
	Fair Value		Measurement Alternative		Other		Total
Equity securities	$	69	$	4,617	$	125	$	4,811
Other investments	0		0		41		41
Balance as of January 31, 2025	$	69	$	4,617	$	166	$	4,852

The Company holds investments in, or management agreements with, variable interest entities (“VIEs”) which the Company does not consolidate because it is not considered the primary beneficiary of these entities. The carrying value of VIEs within strategic investments was $281 million and $484 million, as of October 31, 2025 and January 31, 2025, respectively.

Gains (losses) on Strategic Investments, Net

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


3	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Unrealized gains (losses) recognized on publicly traded equity securities, net	$	0	$	8	$	(3)	$	(11)
Unrealized gains recognized on privately held equity securities, net	428		18		488		167
Impairments on privately held equity securities and other investments	(169)		(242)		(302)		(432)
Unrealized gains (losses), net	259		(216)		183		(276)
Realized gains (losses) on sales of securities, net	4		(1)		23		59

Gains (losses) on strategic investments, net	$	263	$	(217)	$	206	$	(217)

Unrealized gains and losses recognized on privately held equity securities, net includes upward and downward adjustments from equity securities accounted for under the measurement alternative, as well as gains and losses from private equity securities in other measurement categories. For privately held securities accounted for under the measurement alternative, the Company recorded upward adjustments of $456 million and $22 million and impairments and downward adjustments of $190 million and $245 million for the three months ended October 31, 2025 and 2024, respectively, and upward adjustments of $490 million and $182 million and impairments and downward adjustments of $335 million and $435 million for the nine months ended October 31, 2025 and 2024, respectively.

Realized gains on sales of securities, net reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

4. Fair Value Measurement

The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2. Significant other inputs that are directly or indirectly observable in the marketplace.

Level 3. Significant unobservable inputs which are supported by little or no market activity.

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

The following table presents information about the Company’s assets that were measured at fair value as of October 31, 2025 and indicates the fair value hierarchy of the valuation (in millions):


Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
Cash equivalents (1):
Time deposits	$	0	$	1,780	$	0	$	1,780
Money market mutual funds	5,592		0		0		5,592
Cash equivalent securities	0		40		0		40
Marketable securities:
Corporate notes and obligations	0		1,441		0		1,441
U.S. treasury securities	0		170		0		170
Mortgage-backed obligations	0		32		0		32
Asset-backed securities	0		645		0		645
Municipal securities	0		26		0		26

Commercial paper	0		18		0		18

Covered bonds	0		1		0		1
Other	0		12		0		12
Strategic investments:
Equity securities	68		0		0		68


Total assets	$	5,660	$	4,165	$	0	$	9,825

(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $1.6 billion of cash, as of October 31, 2025.

The following table presents information about the Company’s assets that were measured at fair value as of January 31, 2025 and indicates the fair value hierarchy of the valuation (in millions):


Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
Cash equivalents (1):
Time deposits	$	0	$	1,698	$	0	$	1,698
Money market mutual funds	4,373		0		0		4,373
Cash equivalent securities	0		686		0		686
Marketable securities:
Corporate notes and obligations	0		2,557		0		2,557
U.S. treasury securities	0		542		0		542
Mortgage-backed obligations	0		122		0		122
Asset-backed securities	0		1,217		0		1,217
Municipal securities	0		107		0		107
Commercial paper	0		506		0		506
Covered bonds	0		27		0		27
Other	0		106		0		106
Strategic investments:
Equity securities	69		0		0		69


Total assets	$	4,442	$	7,568	$	0	$	12,010

(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.1 billion of cash, as of January 31, 2025.

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Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis

Substantially all of the Company's privately held equity securities and other investments are recorded at fair value on a non-recurring basis. The estimation of fair value for these investments requires the use of significant unobservable inputs, and as a result, the Company deems these assets as Level 3 within the fair value measurement framework. For privately held equity investments without a readily determinable fair value, the Company applies valuation methods based on information available, including the market approach and option pricing models (“OPM”). Observable transactions, such as the issuance of new equity by an investee, are indicators of investee enterprise value and are used to estimate the fair value of the privately held equity investments. An OPM may be utilized to allocate value to the various classes of securities of the investee, including classes owned by the Company. Such information, available to the Company from investee companies, is supplemented with estimates such as volatility, expected time to liquidity and the rights and obligations of the securities the Company holds. When indicators of impairment are observed for privately held equity securities, the Company generally uses the market approach to estimate the fair value of its investment, giving consideration to the latest observable transactions, as well as the investee's current and projected financial performance and other significant inputs and assumptions, including estimated time to exit, selection and analysis of guideline public companies and the rights and obligations of the securities the Company holds. The Company's privately held equity securities and other investments amounted to $6.3 billion and $4.8 billion as of October 31, 2025 and January 31, 2025, respectively.

5. Leases and Other Commitments

Leases

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

Total operating lease costs were $163 million and $162 million for the three months ended October 31, 2025 and 2024, respectively, and were $459 million and $513 million for the nine months ended October 31, 2025 and 2024, respectively. Included in operating lease costs are amounts related to restructuring charges, which are discussed in Note 9 “Restructuring.”

As of October 31, 2025, the maturities of lease liabilities under noncancellable operating and finance leases were as follows (in millions):


	Operating Leases		Finance Leases
Fiscal Period:
Remaining three months of fiscal 2026	$	156	$	76
Fiscal 2027	616		270
Fiscal 2028	568		94
Fiscal 2029	476		50
Fiscal 2030	324		33
Thereafter	872		4
Total minimum lease payments	3,012		527
Less: Imputed interest	(310)		(31)
Total	$	2,702	$	496

The total lease commitment balance, including leases not yet commenced, is $4.4 billion, of which approximately $3.9 billion is related to facilities space. The remaining commitment amount is primarily related to equipment.

Other Balance Sheet Accounts

Accounts payable, accrued expenses and other liabilities included approximately $2.2 billion and $2.8 billion of accrued compensation as of October 31, 2025 and January 31, 2025, respectively.

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6. Business Combinations

Regrello Corp.

In October 2025, the Company acquired all of the outstanding stock of Regrello Corp. (“Regrello”), the developer of an AI-native business process automation solution. The acquisition date fair value of the consideration transferred for Regrello was $818 million, which consisted primarily of $815 million in cash. The Company recorded $704 million of goodwill in its condensed consolidated balance sheets which is primarily attributed to Regrello’s assembled workforce and expanded market opportunities. The goodwill associated with the acquisition of Regrello has no tax basis and is not deductible for U.S. income tax purposes. The Company also recorded approximately $140 million of intangible assets in its condensed consolidated balance sheets for developed technology with a useful life of four years. The fair values assigned to assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The Company has included the financial results of Regrello, which were not material, in its consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were not material.

7. Intangible Assets Acquired Through Business Combinations and Goodwill

Intangible Assets Acquired Through Business Combinations

Intangible assets acquired through business combinations were as follows (in millions):


	Intangible Assets, Gross						Accumulated Amortization						Intangible Assets, Net				Weighted Average Remaining Useful Life (Years)
	January 31, 2025		Additions and retirements, net		October 31, 2025		January 31, 2025		Expense and retirements, net		October 31, 2025		January 31, 2025		October 31, 2025		October 31, 2025
Acquired developed technology	$	2,958	$	224	$	3,182	$	(1,753)	$	(467)	$	(2,220)	$	1,205	$	962	1.0
Customer relationships	6,894		0		6,894		(3,820)		(643)		(4,463)		3,074		2,431		3.0
Other (1)	331		0		331		(182)		(51)		(233)		149		98		1.5
Total	$	10,183	$	224	$	10,407	$	(5,755)	$	(1,161)	$	(6,916)	$	4,428	$	3,491	2.4

(1) Included in Other are in-place leases, trade names, trademarks and territory rights.

Amortization of intangible assets resulting from business combinations for the three months ended October 31, 2025 and 2024 was $386 million and $354 million, respectively, and for the nine months ended October 31, 2025 and 2024 was $1.2 billion, and $1.3 billion, respectively.

The expected future amortization expense for intangible assets as of October 31, 2025 was as follows (in millions):


Fiscal Period:
Remaining three months of fiscal 2026	$	393
Fiscal 2027	1,205
Fiscal 2028	805
Fiscal 2029	628
Fiscal 2030	318
Thereafter	142
Total amortization expense	$	3,491

Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired.

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The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions):






Balance as of January 31, 2025	$	51,283
Acquisition of Regrello	704
Other acquisitions and adjustments (1)	470
Balance as of October 31, 2025	$	52,457

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

8. Debt

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


Instrument	Date of Issuance	Maturity Date	Contractual Interest Rate		Outstanding Principal as of October 31, 2025	Carrying Value as of October 31, 2025		Carrying Value as of January 31, 2025




2028 Senior Notes	April 2018	April 2028	3.70	%	1,500	1,497		1,496
2028 Senior Sustainability Notes	July 2021	July 2028	1.50		1,000	996		995
2031 Senior Notes	July 2021	July 2031	1.95		1,500	1,493		1,491
2041 Senior Notes	July 2021	July 2041	2.70		1,250	1,237		1,236
2051 Senior Notes	July 2021	July 2051	2.90		2,000	1,979		1,979
2061 Senior Notes	July 2021	July 2061	3.05		1,250	1,236		1,236
Total carrying value of debt					8,500	8,438		8,433
Less current portion of debt						0		0
Total noncurrent debt						$	8,438	$	8,433

The Company was in compliance with all debt covenants as of October 31, 2025.

The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $6.8 billion and $6.6 billion as of October 31, 2025 and January 31, 2025, respectively. The fair value was determined based on the closing trading price per $100 of the Senior Notes as of the last day of trading of the third quarter of fiscal 2026 and the last day of trading of fiscal 2025, and are deemed Level 2 liabilities within the fair value measurement framework.

The contractual future principal payments for all borrowings as of October 31, 2025 were as follows (in millions):


Fiscal Period:
Remaining three months of fiscal 2026	$	0
Fiscal 2027	0
Fiscal 2028	0
Fiscal 2029	2,500
Fiscal 2030	0
Thereafter	6,000
Total principal outstanding	$	8,500

Interest expense, primarily from the Company’s debt instruments, was $67 million for the three months ended October 31, 2025 and 2024, respectively, and $202 million and $204 million for the nine months ended October 31, 2025 and 2024, respectively, and is included in other income in the condensed consolidated statements of operations.

Revolving Credit Facility

In October 2024, the Company entered into a Credit Agreement with the lenders and issuing lenders party thereto, and Bank of America, N.A., as administrative agent (the “Revolving Loan Credit Agreement”). The Revolving Loan Credit Agreement replaced the Credit Agreement, dated December 23, 2020 (as amended, the “Prior Credit Agreement”), among the Company, the lenders and the issuing lenders party thereto, and Citibank, N.A., as administrative agent, which provided for a $3.0 billion unsecured revolving credit facility that was scheduled to mature on December 23, 2025. There were no outstanding borrowings under the Prior Credit Agreement.

The Revolving Loan Credit Agreement provides for a $5.0 billion unsecured revolving credit facility (“Credit Facility”) and matures in October 2029. The Company may use the proceeds of future borrowings under the Credit Facility for general corporate purposes. There were no outstanding borrowings under the Credit Facility as of October 31, 2025.

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Informatica-Related Financing

In June 2025, the Company entered into a 364-Day Credit Agreement that provides the Company with the ability to borrow up to $4.0 billion and a three-year Credit Agreement that provides the Company with the ability to borrow up to $2.0 billion, both on an unsecured basis, to finance a portion of the cash consideration for the Company’s acquisition of Informatica Inc. (“Informatica”), the repayment of certain debt of Informatica and the payment of fees, costs and expenses related thereto (collectively, the “Informatica Credit Agreements”). The availability and funding of each credit agreement is conditioned on the consummation of the acquisition of Informatica in accordance with the terms of the merger agreement and is subject to certain exceptions, qualifications and certain other conditions. There were no outstanding borrowings on the Informatica Credit Agreements as of October 31, 2025.

For more information regarding the acquisition of Informatica, see Note 14 “Subsequent Events.”

9. Restructuring

Beginning in fiscal 2023, the Company has undertaken various restructuring initiatives to improve operating margins and continue advancing its ongoing commitment to profitable growth, which have included a reduction of the Company’s workforce and office space reductions within certain markets. The Company continues to evaluate and operationalize future programs to drive further operational efficiencies, optimize its management structure and increase cost optimization efforts to realize long-term sustainable growth. The Company recognized $260 million and $56 million in restructuring charges during the three months ended October 31, 2025 and 2024, respectively, and $300 million and $163 million during the nine months ended October 31, 2025 and 2024, respectively, which were substantially related to workforce reductions that include charges for employee transition, severance payments, employee benefits and stock-based compensation.

10. Stockholders’ Equity

Stock option activity for the nine months ended October 31, 2025 was as follows:


	Options Outstanding
	Outstanding Stock Options (in millions)	Weighted- Average Exercise Price		Aggregate Intrinsic Value (in millions)
Balance as of January 31, 2025	8	$	198.89








Exercised	(1)	178.45


Balance as of October 31, 2025	7	$	204.59	$	674
Vested or expected to vest	7	$	204.10	$	669
Exercisable as of October 31, 2025	6	$	196.88	$	583

Restricted stock activity for the nine months ended October 31, 2025 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, 2025	26	$	250.50
Granted - restricted stock units and awards	10	277.28
Granted - performance-based restricted stock units	2	272.68
Canceled	(2)	253.53
Vested and converted to shares	(10)	245.31
Balance as of October 31, 2025	26	$	264.85	$	6,742
Expected to vest	22			$	5,857

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The aggregate expected stock-based compensation expense remaining to be recognized as of October 31, 2025 was as follows (in millions):


Fiscal Period:
Remaining three months of fiscal 2026	$	957
Fiscal 2027	2,514
Fiscal 2028	1,826
Fiscal 2029	955
Fiscal 2030	154

Total stock-based compensation expense	$	6,406

The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of October 31, 2025 and assumes no forfeiture activity and no changes in the expected level of attainment of performance share grants based on the Company’s financial performance relative to certain targets.

Share Repurchase Program

The Company’s Board of Directors (the “Board”) authorized a program to repurchase shares of the Company's common stock (the "Share Repurchase Program"), which commenced in August 2022. In September 2025, the Board authorized an additional $20.0 billion in repurchases under the Share Repurchase Program, for an aggregate total authorization of $50.0 billion. The Share Repurchase Program does not have a fixed expiration date and does not obligate the Company to acquire any specific number of shares. Under the Share Repurchase Program, shares of common stock may be repurchased using a variety of methods, including privately negotiated and or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as part of accelerated share repurchases and other methods. The timing, manner, price and amount of any repurchases are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. The Company accounts for treasury stock under the cost method.

The Company repurchased the following under its Share Repurchase Program (in millions, except average price per share):


	2025					2024
	Shares	Average price per share		Amount		Shares	Average price per share		Amount



Three months ended April 30,	10	$	273.42	$	2,681	7	$	293.00	$	2,168
Three months ended July 31,	8	$	269.96	$	2,199	18	$	246.14	$	4,288
Three months ended October 31,	15	$	246.33	$	3,814	5	$	257.00	$	1,228

All repurchases were made in open market transactions. As of October 31, 2025, the Company was authorized to purchase a remaining $21.9 billion of its common stock under the Share Repurchase Program.

Dividends

The Company announced the following dividends:


Quarter Ended	Record Date	Payment Date	Dividend per Share		Amount (in millions)
Fiscal 2026
April 30, 2025	April 10, 2025	April 24, 2025	$	0.416	$	406
July 31, 2025	June 18, 2025	July 10, 2025	$	0.416	$	404
October 31, 2025	September 17, 2025	October 9, 2025	$	0.416	$	400
Fiscal 2025
April 30, 2024	March 14, 2024	April 11, 2024	$	0.40	$	388
July 31, 2024	July 9, 2024	July 25, 2024	$	0.40	$	388
October 31, 2024	September 18, 2024	October 8, 2024	$	0.40	$	385

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11. Income Taxes

Effective Tax Rate

The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. For the nine months ended October 31, 2025, the Company reported a tax provision of $1.4 billion on pretax income of $6.9 billion, which resulted in an effective tax rate of 20 percent. The Company’s effective tax rate differed from the U.S. statutory rate of 21 percent primarily due to research and development credits, partially offset by state and local taxes.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA includes significant changes to US corporate tax provisions of the Tax Cuts and Jobs Act. Notably, it allows an immediate deduction for domestic research and development expenditures, reinstates 100% bonus depreciation, and modifies the international tax framework. The legislation has multiple effective dates, with certain provisions effective in fiscal 2026 and others in the subsequent years. The changes had an immaterial impact to the Company’s tax provision for the period ended October 31, 2025.

For the nine months ended October 31, 2024, the Company reported a tax provision of $961 million on pretax income of $5.5 billion, which resulted in an effective tax rate of 18 percent. The Company’s effective tax rate differed from the U.S. statutory rate of 21 percent primarily due to research and development credits, the foreign-derived intangible income deduction, and excess tax benefits from stock-based compensation.

Unrecognized Tax Benefits and Other Considerations

The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, Germany, Israel, and India. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues addressed in the Company’s tax audits are resolved in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future. The Company does not anticipate a significant change to its unrecognized tax benefits in the next 12 months.

12. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the fiscal period. Diluted net income per share is computed by giving effect to all potential weighted average dilutive common stock, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income per share by application of the treasury stock method.

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


3	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Numerator:
Net income	$	2,086	$	1,527	$	5,514	$	4,489
Denominator:
Weighted-average shares outstanding for basic net income per share	948		956		955		963
Effect of dilutive securities:
Employee stock awards	4		9		7		12


Weighted-average shares outstanding for diluted net income per share	952		965		962		975

The weighted-average number of shares outstanding used in the computation of diluted net income per share does not include the effect of the following potentially outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted net income per share because the effect would have been anti-dilutive (in millions):


	Three Months Ended October 31,		Nine Months Ended October 31,
	2025	2024	2025	2024
Employee stock awards	18	10	9	9

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13. Legal Proceedings and Claims

In the ordinary course of business, the Company is or may be involved in various legal or regulatory proceedings, claims or purported class actions related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour and other claims. The Company has been, and may in the future be, put on notice or sued by third parties for alleged infringement of their proprietary rights, including patent infringement.

In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s reputation and future operating results.

The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. At this time, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate.

In management’s opinion, resolution of all current matters, including those described below, is not expected to have a material adverse impact on the Company’s financial statements. However, depending on the nature and timing of any such dispute, payment or other contingency, the resolution of a matter could materially affect the Company’s current or future results of operations or cash flows, or both, in a particular quarter.

Slack Litigation

Beginning in September 2019, seven purported class action lawsuits were filed against Slack, its directors, certain of its officers and certain investment funds associated with certain of its directors, each alleging violations of securities laws in connection with Slack’s registration statement on Form S-1 (the “Registration Statement”) filed with the SEC. All but one of these actions were filed in the Superior Court of California for the County of San Mateo, though one plaintiff originally filed in the County of San Francisco before refiling in the County of San Mateo (and the original San Francisco action was dismissed). The remaining action was filed in the U.S. District Court for the Northern District of California (the “Federal Action”). In the Federal Action, captioned Dennee v. Slack Technologies, Inc., Case No. 3:19-CV-05857-SI, Slack and the other defendants filed a motion to dismiss the complaint in January 2020. In April 2020, the court granted in part and denied in part the motion to dismiss. In May 2020, Slack and the other defendants filed a motion to certify the court’s order for interlocutory appeal, which the court granted. Slack and the other defendants filed a petition for permission to appeal the district court’s order to the Ninth Circuit Court of Appeals, which was granted in July 2020. Oral argument was heard in May 2021. On September 20, 2021, the Ninth Circuit affirmed the district court’s ruling. Slack filed a petition for rehearing with the Ninth Circuit on November 3, 2021, which was denied on May 2, 2022. Slack filed a petition for a writ of certiorari with the U.S. Supreme Court on August 31, 2022, which was granted on December 13, 2022. On June 1, 2023, the Supreme Court issued a unanimous decision vacating the Ninth Circuit’s decision and remanded for further proceedings. The Ninth Circuit ordered the parties to submit additional briefing in light of the Supreme Court’s decision. On February 10, 2025, the Ninth Circuit issued an opinion reversing the district court’s order and instructing the district court to dismiss the complaint with prejudice. On July 10, 2025, the plaintiff filed a petition for a writ of certiorari with the U.S. Supreme Court, which was denied on October 6, 2025. On November 4, 2025, the defendants requested that the district court enter judgment against the plaintiff in the Federal Action. On November 10, 2025, the court entered judgment for defendants and against the plaintiff, which marks the conclusion of the Federal Action. The state court actions were consolidated in November 2019, and the consolidated action is captioned In re Slack Technologies, Inc. Shareholder Litigation, Lead Case No. 19CIV05370 (the “State Court Action”). An additional state court action was filed in San Mateo County in June 2020 but was consolidated with the State Court Action in July 2020. Slack and the other defendants filed demurrers to the complaint in the State Court Action in February 2020. In August 2020, the court sustained in part and overruled in part the demurrers, and granted plaintiffs leave to file an amended complaint, which they filed in October 2020. Slack and the other defendants answered the complaint in November 2020. Plaintiffs filed a motion for class certification on October 21, 2021, which remains pending. On October 26, 2022, the court stayed the State Court Action pending resolution of Slack’s petition for a writ of certiorari in the Federal Action. On November 7, 2025, the court lifted the stay in the State Court Action solely to permit plaintiffs to take certain discovery and to file a renewed motion for class certification, if they choose to do so. The State Court Action seek unspecified monetary damages and other relief on behalf of investors who purchased Slack’s Class A common stock issued pursuant and/or traceable to the Registration Statement.

Backpage Litigation

The Company has been named as a defendant in a number of state and federal actions relating to the activities of one of its former customers, Website Technologies, LLC (“Website Technologies”), an affiliate of Backpage.com, LLC (“Backpage”). Plaintiffs in these actions generally allege that they were victims of sex trafficking by individuals who advertised them on backpage.com, a website operated by Backpage, and assert various claims and theories premised on the Company’s provision to Website Technologies of Salesforce CRM Software and related products, which the plaintiffs allege facilitated the operation

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and growth of Backpage’s business. The initial action, filed in the Superior Court of California for the County of San Francisco on behalf of numerous plaintiffs, was dismissed with prejudice under Section 230 of the Communications Decency Act (“Section 230”), and that dismissal was affirmed by the California Court of Appeal in December 2021. In April 2020, an action was filed on behalf of a single plaintiff in the U.S. District Court for the Northern District of Illinois, G.G. v. Salesforce, Inc., Case No. No. 1:20-CV-2335. The district court granted the Company’s motion to dismiss the action, and the Seventh Circuit Court of Appeals reversed that ruling in August 2023. On June 12, 2025, after discovery had commenced, Plaintiff filed a substantially amended complaint. On July 9, 2025, the Company filed a motion to dismiss that complaint. The court has scheduled trial in the Northern District of Illinois matter for June 2026. Beginning in April 2020, five actions involving six plaintiffs were filed and consolidated in the U.S. District Court for the Southern District of Texas as A.B. v. Salesforce, Inc., Case No. 4:20-CV-01254. The Company moved for summary judgment on the basis that the claims were barred by Section 230. In November 2023, the court denied the Company’s motion and in December 2024, the Fifth Circuit Court of Appeals affirmed that ruling. Beginning in May 2023, a number of similar actions have been filed in Texas federal and state courts, including principally: (1) 30 actions filed in the U.S. District Court for the Northern District of Texas, which were consolidated as S.M.A. v. Salesforce, Inc., Case No. 3:23-CV-0915-B (“S.M.A”); (2) 21 actions filed in Texas state court in Dallas County, which were removed by the Company to the Northern District of Texas, and consolidated as A.S. v. Salesforce, Inc., Case No. 3:23-CV-1039-B (“A.S.”); and (3) one action filed in Texas state court in Harris County, which was removed to the U.S. District Court for the Southern District of Texas as T.S. v. Salesforce, Inc., Case No. 4:23-CV-01792 (“T.S.”). In June 2023, the Company moved to dismiss the T.S. action, and that motion remains pending. Separately, 19 actions have been filed in Texas state court, which are proceeding in a Texas state court multidistrict litigation in Harris County District Court, captioned In re Jane Doe Cases, MDL 2020-28545. In March 2024, the district court in S.M.A. granted the Company’s consolidated motion to dismiss the complaint on the ground that plaintiffs had not alleged the requisite intent element under the federal trafficking statute, and in April 2024 an amended complaint was filed amending the federal law claim and adding a Texas state law claim. In May 2024, the Company moved to dismiss the amended complaint. In March 2025, the district court granted the motion as to the Texas state law claims, dismissed the Texas claims with prejudice, and denied the motion as to the federal law claims. In September 2024, the district court in A.S. denied the Company’s motion to dismiss and then scheduled trial for January 2026. In November 2024, the Company moved for judgment on the pleadings in A.S. In May 2025, the district court granted that motion with leave to amend the complaint. Plaintiffs then filed a consolidated amended complaint, and on June 20, 2025, the Company moved to dismiss that complaint. That motion remains pending. In June 2025, Plaintiff’s counsel in A.S. and S.M.A. filed six new actions in the Northern District of Illinois on behalf of a total of 244 new Plaintiffs. On August 26, 2025, the six new actions were consolidated before the Northern District of Illinois judge who is presiding over the G.G. action. On July 14, 2025, Plaintiff’s counsel in G.G. filed a new action in the Southern District of Texas, C.S. v. Salesforce, Inc., Case No. 25-CV-00189 (“C.S.”). On September 29, 2025, the Company filed a motion to dismiss the C.S. action. That motion remains pending. Beginning in early August 2025, the Company filed motions in each of the pending federal cases for a stay of proceedings pending the completion of ongoing criminal proceedings involving Backpage. On October 21, 2025, the court in the A.S. and S.M.A. actions granted the Company’s motions to stay those actions, and on October 28, 2025, the court in A.B. similarly granted the Company’s stay motion. On November 7, 2025, Plaintiffs’ counsel in A.S., S.M.A., and A.B. moved for reconsideration of the stay rulings. The motions for reconsideration remain pending, and the stay motions in the other federal actions also remain pending. All of the foregoing actions seek unspecified monetary damages, attorneys’ fees, and costs. The Company intends to defend its interests in these proceedings vigorously.

14. Subsequent Events

Informatica Inc.

In November 2025, the Company acquired all outstanding stock of Informatica, an AI-powered enterprise cloud data management platform. The preliminary acquisition date fair value of the consideration transferred for Informatica is estimated to be approximately $9.6 billion, comprised primarily of $9.5 billion in cash. The cash portion included the full $6.0 billion available under the credit facilities associated with the Informatica Credit Agreements (see Note 8 “Debt”).

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, which may consist of, among other things, trend analyses and statements regarding future events, future financial performance, anticipated growth, and industry prospects, are forward-looking. Words such as “aims,” “anticipates,” “assumes,” “believes,” “commitments,” “could,” “estimates,” “expects,” “forecasts,” “foresees,” “goals,” “intends,” “may,” “plans,” “predicts,” “projects,” “seeks,” “should,” “targets” and “would,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are inherently uncertain and based on management’s current expectations and assumptions, which are subject to risks and uncertainties that are difficult to predict, including those described in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” Part I, Item 3, “Quantitative and Qualitative Disclosures About Market Risk,” Part II, Item 1A, “Risk Factors,” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements.

In light of these and other risks and uncertainties, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur as we expect or at all, and our actual results or outcomes may differ materially and adversely from those expressed or implied in our forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements. Except as required by law, we undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Overview

Salesforce is a global leader in customer relationship management (“CRM”) technology, enabling companies of every size and industry to connect with their customers through the power of data, artificial intelligence (“AI”), CRM and trust. Founded in 1999, we bring humans together with AI agents to drive customer success on one deeply unified platform.

Our platform unites sales, service, marketing, commerce and IT teams by connecting customer data across systems, apps and devices to create a complete view of customers. With this single source of customer truth and integrated AI, teams can be more responsive, productive and efficient, deliver intelligent, personalized experiences across every channel and increase productivity. During the third quarter of fiscal 2025, we introduced Agentforce, a new layer of our trusted platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. We continue to invest for growth, including investing in generative and agentic AI across all products, which we believe will change how our customers help their customers, and continuously look to expand our leadership role in the cloud computing industry.

We continue to focus on several key growth levers, including driving multiple service offering adoption, increasing our penetration with enterprise and international customers and expanding our industry-specific reach with more vertical software solutions. These growth levers often require a more sophisticated go-to-market approach and, as a result, we may incur additional costs upfront to obtain new customers and expand our relationships with existing customers, including additional sales and marketing expenses specific to subscription and support revenue. As a result, we have seen that customers with many of these characteristics drive higher annual revenues and have lower attrition rates than our company average. In addition to these growth levers, our mergers and acquisitions framework has included several acquisitions that accelerate our agentic roadmap, including our October 2025 acquisition of Regrello Corp. (“Regrello”) and our November 2025 acquisition of Informatica Inc. (“Informatica”). These acquisitions are bringing in key talent and technology to accelerate innovation.

We are also focused on reducing our operating expenses to improve our operating margin. We have undertaken various restructuring initiatives to improve operating margins and continue advancing our ongoing commitment to profitable growth which included a reduction of our workforce and office space reductions within certain markets. We continue to evaluate and operationalize future programs to drive further operational efficiencies, optimize our management structure and increase cost optimization efforts to realize long-term sustainable growth. We expect to continue to experience improvements in our operating expenses as a percentage of revenue, which could include various restructuring initiatives or measured hiring initiatives to drive operational efficiencies.

Highlights from First Nine Months of Fiscal 2026

•Revenue: For the nine months ended October 31, 2025, revenue was $30.3 billion, an increase of nine percent year-over-year.

•Income from Operations: For the nine months ended October 31, 2025, income from operations was $6.5 billion as compared to $5.4 billion from a year ago. Operating margin, which represents income from operations as a percentage of total revenue, increased to approximately 22 percent for the nine months ended October 31, 2025 compared to approximately 19 percent in the prior year period.

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•Net Income per Share: For the nine months ended October 31, 2025, diluted net income per share was $5.73 as compared to diluted net income per share of $4.60 from a year ago.

•Cash: Cash provided by operations for the nine months ended October 31, 2025 was $9.5 billion, an increase of four percent year-over-year. Total cash, cash equivalents and marketable securities as of October 31, 2025 was $11.3 billion.

•Remaining Performance Obligation: Total remaining performance obligation, which represents all future revenue under contract yet to be recognized, as of October 31, 2025 was approximately $59.5 billion, an increase of 12 percent year-over-year. Current remaining performance obligation as of October 31, 2025 was approximately $29.4 billion, an increase of 11 percent year-over-year.

•Share Repurchase Program: During the nine months ended October 31, 2025, we repurchased approximately 33 million shares of our common stock for approximately $8.7 billion.

•Dividend Program: During the nine months ended October 31, 2025, we paid approximately $1.2 billion in dividends and dividend equivalents.

•Informatica Acquisition: In November 2025, we completed our acquisition of Informatica, an AI-powered enterprise cloud data management platform, for approximately $9.6 billion.

Over the first three quarters of fiscal 2026, we continued to see strong momentum in Data Cloud, Agentforce and our broader AI service offerings. As we have a diversified portfolio of products and a customer base across various geographies, segments and industries, demand for our offerings has remained relatively resilient.

In addition, the expanding global scope of our business and the heightened volatility of global markets expose us to the risk of fluctuations in foreign currency markets. Total revenues in the nine months ended October 31, 2025 were minimally impacted by foreign currency fluctuations compared to the nine months ended October 31, 2024. Our current remaining performance obligation growth as of October 31, 2025 compared to October 31, 2024 was positively impacted by one percent compared to what would have been reported using constant currency rates. The impact of foreign currency fluctuations could impact our near-term results and ability to accurately predict our future results and earnings. The impact of these fluctuations can also be compounded by the seasonality of our business in which our fourth quarter has historically been our strongest quarter for new business and renewals.

Fiscal Year

Our fiscal year ends on January 31. References to fiscal 2026, for example, refer to the fiscal year ending January 31, 2026.

Operating Segments

We operate as one segment. See Note 1 “Summary of Business and Significant Accounting Policies” to the condensed consolidated financial statements for further discussion.

Sources of Revenues

We derive our revenues from two sources: (1) subscription and support revenues and (2) professional services and other revenues. Subscription and support revenues accounted for approximately 95 percent of our total revenues for the nine months ended October 31, 2025.

Subscription and support revenues primarily include subscription fees from customers accessing our enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term software licenses, and support revenues from the sale of support and updates beyond the basic subscription fees or related to the sales of software licenses. Our Cloud Services allow customers to use our multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Subscription and support revenues also include revenues associated with term software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from support and updates is recognized as such support and updates are provided, which is generally ratably over the contract term. Changes in contract duration for multi-year term software licenses can impact the amount of revenues recognized upfront. Revenues from term software licenses represent less than ten percent of total subscription and support revenue for the three and nine months ended October 31, 2025.

The revenue growth rates of each of our service offerings, as described below in “Results of Operations,” fluctuate from quarter to quarter and over time. Additionally, we manage the total balanced product portfolio to deliver solutions to our customers and, as a result, the revenue result for each offering is not necessarily indicative of the results to be expected for any subsequent quarter. In addition, some of our Cloud Service offerings have similar features and functions. For example, customers may use our Sales, Service or Platform service offerings to record account and contact information, which are similar

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features across these service offerings. Depending on a customer’s actual and projected business requirements, more than one service offering may satisfy the customer’s current and future needs. We record revenue based on the individual products ordered by a customer, not according to the customer’s business requirements and usage.

Our growth in revenues is also impacted by attrition. Attrition represents the reduction or loss of the annualized value of our contracts with customers. We calculate our attrition rate at a point in time on a trailing twelve-month basis as of the end of each month. In general, we exclude service offerings from acquisitions from our attrition calculation until they are fully integrated into our customer success organization. As of October 31, 2025, our attrition rate, excluding Slack self-service, was approximately eight percent.

We continue to maintain a variety of customer programs and initiatives, which, along with increasing enterprise adoption, have helped keep our attrition rate consistent as compared to the prior year. Consistent attrition rates play a role in our ability to maintain growth in our subscription and support revenues.

Seasonal Nature of Unearned Revenue, Accounts Receivable and Operating Cash Flow

Unearned revenue primarily consists of billings to customers for our subscription service. Over 90 percent of the value of our billings to customers is for our subscription and support service. We generally invoice our customers in advance, in annual installments, and typical payment terms provide that our customers pay us within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or in revenue depending on whether transfer of control to customers has occurred. In general, we collect our billings in advance of the subscription service period. We typically issue renewal invoices in advance of the renewal service period, and depending on timing, the initial invoice for the subscription and services contract and the subsequent renewal invoice may occur in different quarters. There is a disproportionate weighting toward annual billings in the fourth quarter, primarily as a result of large enterprise account buying patterns. Our fourth quarter has historically been our strongest quarter for new business and renewals. The year-on-year compounding effect of this seasonality in both billing patterns and overall new and renewal business causes the value of invoices that we generate in the fourth quarter for both new business and renewals to increase as a proportion of our total annual billings. Accordingly, because of this billing activity, our first quarter is typically our largest collections and operating cash flow quarter. Generally, our second or third quarter has historically been our smallest operating cash flow quarter. Unearned revenues, accounts receivable and operating cash flow may also be impacted by acquisitions. For example, operating cash flows may be adversely impacted by acquisitions due to transaction costs, financing costs such as interest expense and lower operating cash flows from the acquired entity.

Remaining Performance Obligation

Our remaining performance obligation represents all future revenue under contract that has not yet been recognized as revenue and includes unearned revenue and unbilled amounts. Our current remaining performance obligation represents future revenue under contract that is expected to be recognized as revenue in the next 12 months.

Remaining performance obligation is not necessarily indicative of future revenue growth and is influenced by several factors, including seasonality, the timing of renewals, average contract terms, foreign currency exchange rates and fluctuations in new business growth. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. For multi-year subscription agreements billed annually, the associated unbilled balance and corresponding remaining performance obligation are typically high at the beginning of the contract period, zero just prior to renewal, and increase if the agreement is renewed. Low remaining performance obligation attributable to a particular subscription agreement is often associated with an impending renewal but may not be an indicator of the likelihood of renewal or future revenue from such customer. Changes in contract duration or the timing of delivery of professional services can impact remaining performance obligation as well as the allocation between current and non-current remaining performance obligation.

Cost of Revenues and Operating Expenses

Cost of Revenues

Cost of subscription and support revenues primarily consists of expenses related to our employee-related costs, which includes salaries, benefits and stock-based compensation expense, delivering our service and providing support, including the costs of data center capacity, certain fees paid to various third parties for the use of their technology, services and data, and allocated overhead. Our cost of subscription and support revenues also includes amortization of certain acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts. Also included in the cost of subscription and support revenues are expenses incurred supporting the free user base of Slack, including third-party hosting costs and employee-related costs specific to customer experience and technical operations.

Cost of professional services and other revenues consists primarily of employee-related costs associated with these services, the cost of subcontractors, certain third-party fees and allocated overhead. We believe that our professional services

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organization facilitates the adoption of our service offerings, helps us to secure larger subscription revenue contracts and supports our customers’ success. The cost of professional services may exceed revenues from professional services in future fiscal periods.

Research and Development

Research and development expenses consist primarily of employee-related costs for our engineering staff associated with product development, as well as allocated overhead.

Sales and Marketing

Sales and marketing expenses make up the majority of our operating expenses and consist primarily of employee-related costs and commissions for our sales and marketing staff, as well as payments to partners, marketing programs and allocated overhead. Marketing programs consist of advertising, events, corporate communications, brand building and product marketing activities. We capitalize certain costs to obtain customer contracts, such as commissions, and amortize these costs on a straight-line basis. As such, the timing of expense recognition for these commissions is not consistent with the timing of the associated cash payment.

Our sales and marketing expenses include amortization of certain acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s trade names, customer lists and customer relationships.

General and Administrative

General and administrative expenses consist primarily of employee-related costs for finance and accounting, legal, internal audit, human resources and management information systems personnel, as well as professional services fees and allocated overhead.

We allocate overhead such as information technology infrastructure, rent, occupancy charges and certain employee benefits based on headcount. As such, these types of expenses are reflected in each cost of revenue and operating expense category.

Restructuring

Restructuring consists of charges related to employee transition, severance payments, employee benefits and stock-based compensation as well as impairment charges associated with long-lived assets. Restructuring excludes allocated overhead.

Critical Accounting Policies and Estimates

Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.

We believe that of our significant accounting policies, which are described in Note 1 “Summary of Business and Significant Accounting Policies” to our condensed consolidated financial statements, the following accounting policies and specific estimates involve a greater degree of judgment and complexity. Accordingly, these are the policies and estimates we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations:

•the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;

•the valuation of privately held strategic investments;

•the fair value of assets acquired and liabilities assumed for business combinations;

•the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions;

•the useful lives of intangible assets; and

•the fair value of certain stock awards issued.

These estimates may change, as new events occur and additional information is obtained, and such changes will be recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ from these estimates and any such differences may be material to our financial statements.

Additionally, refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 for further discussion with respect to these policies and estimates.

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Recent Accounting Pronouncements

See Note 1 “Summary of Business and Significant Accounting Policies” to the condensed consolidated financial statements for our discussion about new accounting pronouncements.

Results of Operations

The following tables set forth selected data for each of the periods indicated (in millions):


3	Three Months Ended October 31,								Nine Months Ended October 31,
	2025		% of Total Revenues		2024		% of Total Revenues		2025		% of Total Revenues		2024		% of Total Revenues
Revenues:
Subscription and support	$	9,726	95	%	$	8,879	94	%	$	28,713	95	%	$	26,228	94	%
Professional services and other	533		5		565		6		1,611		5		1,674		6
Total revenues	10,259		100		9,444		100		30,324		100		27,902		100
Cost of revenues (1)(2):
Subscription and support	1,665		16		1,501		16		4,921		16		4,617		17
Professional services and other	590		6		604		6		1,841		6		1,809		6
Total cost of revenues	2,255		22		2,105		22		6,762		22		6,426		23
Gross profit	8,004		78		7,339		78		23,562		78		21,476		77
Operating expenses (1)(2):
Research and development	1,433		14		1,356		14		4,374		14		4,073		15
Sales and marketing	3,456		34		3,323		35		10,328		34		9,786		35
General and administrative	667		6		711		8		2,098		7		2,069		7

Restructuring	260		3		56		1		300		1		163		1
Total operating expenses	5,816		57		5,446		58		17,100		56		16,091		58
Income from operations	2,188		21		1,893		20		6,462		22		5,385		19


Gains (losses) on strategic investments, net	263		2		(217)		(3)		206		0		(217)		0
Other income	61		1		70		1		224		1		282		1
Income before provision for income taxes	2,512		24		1,746		18		6,892		23		5,450		20
Provision for income taxes	(426)		(4)		(219)		(2)		(1,378)		(5)		(961)		(4)
Net income	$	2,086	20	%	$	1,527	16	%	$	5,514	18	%	$	4,489	16	%

(1) Amounts related to amortization of intangible assets acquired through business combinations, as follows (in millions):


	Three Months Ended October 31,								Nine Months Ended October 31,
	2025		% of Total Revenues		2024		% of Total Revenues		2025		% of Total Revenues		2024		% of Total Revenues
Cost of revenues	$	156	2	%	$	131	2	%	$	468	2	%	$	600	2	%
Sales and marketing	230		2		223		2		693		2		669		3

(2) Amounts related to stock-based compensation expense, as follows (in millions):


	Three Months Ended October 31,								Nine Months Ended October 31,
	2025		% of Total Revenues		2024		% of Total Revenues		2025		% of Total Revenues		2024		% of Total Revenues
Cost of revenues	$	129	1	%	$	135	2	%	$	406	1	%	$	386	2	%
Research and development	271		3		278		3		826		3		814		3
Sales and marketing	296		3		312		3		874		3		911		3
General and administrative	109		1		95		1		291		1		267		1
Restructuring	14		0		0		0		29		0		2		0

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The following table sets forth selected balance sheet data and other metrics for each of the periods indicated (in millions, except remaining performance obligation, which is presented in billions):


	As of
	October 31, 2025		January 31, 2025

Cash, cash equivalents and marketable securities	$	11,323	$	14,032
Unearned revenue	14,996		20,743
Remaining performance obligation	59.5		63.4
Principal due on our outstanding debt obligations (1)	8,500		8,500

(1) Amounts do not include operating or financing lease obligations.

Remaining performance obligation represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods.

Revenues


	Three Months Ended October 31,				Variance
(in millions)	2025		2024		Dollars		Percent
Subscription and support	$	9,726	$	8,879	$	847	10	%
Professional services and other	533		565		(32)		(6)
Total revenues	$	10,259	$	9,444	$	815	9	%


	Nine Months Ended October 31,				Variance
(in millions)	2025		2024		Dollars		Percent
Subscription and support	$	28,713	$	26,228	$	2,485	9	%
Professional services and other	1,611		1,674		(63)		(4)
Total revenues	$	30,324	$	27,902	$	2,422	9	%

The increase in subscription and support revenues for the three and nine months ended October 31, 2025 was primarily caused by volume-driven increases from new business, which includes new customers, upgrades, and additional subscriptions from existing customers. Pricing was not a significant driver of the increase in revenues for either period. Revenues from term software licenses, which are recognized at a point in time, represented approximately four percent and six percent of total subscription and support revenues for the three and nine months ended October 31, 2025, and five percent of total subscription and support revenues for the three and nine months ended October 31, 2024. Subscription and support revenues accounted for approximately 95 percent of our total revenues for the three and nine months ended October 31, 2025 and 94 percent for the three and nine months ended October 31, 2024.

The decrease in professional services and other revenues for the three and nine months ended October 31, 2025 was primarily due to less demand for larger, multi-year transformation engagements, which may continue in the near term.

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Subscription and Support Revenues by Service Offering(1)

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


	Three Months Ended October 31,
	2025		As a % of Total Subscription and Support Revenues		2024		As a % of Total Subscription and Support Revenues		Growth Rate
Agentforce Sales	$	2,297	24	%	$	2,119	24	%	8	%
Agentforce Service	2,495		26		2,288		26		9
Agentforce 360 Platform, Slack and Other	2,180		22		1,825		20		19
Agentforce Marketing and Agentforce Commerce	1,361		14		1,334		15		2
Agentforce Integration and Agentforce Analytics	1,393		14		1,313		15		6
Total	$	9,726	100	%	$	8,879	100	%	10	%


	Nine Months Ended October 31,
	2025		As a % of Total Subscription and Support Revenues		2024		As a % of Total Subscription and Support Revenues		Growth Rate
Agentforce Sales	$	6,695	23	%	$	6,188	24	%	8	%
Agentforce Service	7,287		25		6,727		26		8
Agentforce 360 Platform, Slack and Other	6,227		22		5,329		20		17
Agentforce Marketing and Agentforce Commerce	4,051		14		3,924		15		3
Agentforce Integration and Agentforce Analytics	4,453		16		4,060		15		10
Total	$	28,713	100	%	$	26,228	100	%	9	%

(1) In the third quarter of fiscal 2026, we renamed our service offerings to reference Agentforce. There were no changes in the allocation of revenue between these service offerings coming from this change.

Agentforce Integration and Agentforce Analytics subscription and support revenues include revenues from term software licenses, which are recognized at the point in time when the software is made available to the customer. Therefore, we expect these offerings to experience greater volatility in revenues period to period compared to our other service offerings and recent revenue trends may not be indicative of future performance. Additionally, as we transition customers within the Agentforce Integration and Agentforce Analytics offering from term software licenses to subscription based services, revenue associated with such customers will generally be recognized ratably over the contract term, which we expect may potentially result in less revenue in the period the customer transitions but incremental revenues over the remaining term.

Revenues by Geography


	Three Months Ended October 31,
(in millions)	2025		As a % of Total Revenues		2024		As a % of Total Revenues		Growth Rate
Americas	$	6,703	65	%	$	6,220	66	%	8	%
Europe	2,470		24		2,228		24		11
Asia Pacific	1,086		11		996		10		9
	$	10,259	100	%	$	9,444	100	%	9	%

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	Nine Months Ended October 31,
(in millions)	2025		As a % of Total Revenues		2024		As a % of Total Revenues		Growth Rate
Americas	$	19,908	66	%	$	18,483	66	%	8	%
Europe	7,236		24		6,557		24		10
Asia Pacific	3,180		10		2,862		10		11
	$	30,324	100	%	$	27,902	100	%	9	%

Revenues by geography are determined based on the region of the Salesforce contracting entity, which may be different than the region of the customer. The increase in revenues across all regions was primarily due to the continued execution of our business and growth strategy, including increasing our geographic reach primarily through extending our go-to-market capabilities globally. Total revenues were positively impacted by approximately one percent due to fluctuations in foreign currencies during the three months ended October 31, 2025 compared to the three months ended October 31, 2024, and were minimally impacted by foreign currency fluctuations during the nine months ended October 31, 2025 compared to the nine months ended October 31, 2024.

Cost of Revenues


	Three Months Ended October 31,								Variance
(in millions)	2025		As a % of Total Revenues		2024		As a % of Total Revenues		Dollars
Subscription and support	$	1,665	16	%	$	1,501	16	%	$	164
Professional services and other	590		6		604		6		(14)
Total cost of revenues	$	2,255	22	%	$	2,105	22	%	$	150


	Nine Months Ended October 31,								Variance
(in millions)	2025		As a % of Total Revenues		2024		As a % of Total Revenues		Dollars
Subscription and support	$	4,921	16	%	$	4,617	17	%	$	304
Professional services and other	1,841		6		1,809		6		32
Total cost of revenues	$	6,762	22	%	$	6,426	23	%	$	336

Cost of revenues as a percentage of total revenues during the three months ended October 31, 2025 were consistent with the same period a year ago and decreased by approximately one percent during the nine months ended October 31, 2025 compared to the same period a year ago, primarily as a result of a decrease in amortization of intangible assets acquired through business combinations. For the three and nine months ended October 31, 2025, the increase in cost of revenues in absolute dollars was primarily due to an increase in service delivery expenses associated with our platform.

We intend to continue to invest additional resources in enterprise cloud computing services to allow us to scale with our customers and continue to evolve our security measures. The timing of these expenses, which also includes the use of AI and agents, may cause our cost of revenues as a percentage of revenues to fluctuate over time due to changes in demand for our service offerings.

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Operating Expenses


	Three Months Ended October 31,								Variance
(in millions)	2025		As a % of Total Revenues		2024		As a % of Total Revenues		Dollars
Research and development	$	1,433	14	%	$	1,356	14	%	$	77
Sales and marketing	3,456		34		3,323		35		133
General and administrative	667		6		711		8		(44)
Restructuring	260		3		56		1		204
Total operating expenses	$	5,816	57	%	$	5,446	58	%	$	370


	Nine Months Ended October 31,								Variance
(in millions)	2025		As a % of Total Revenues		2024		As a % of Total Revenues		Dollars
Research and development	$	4,374	14	%	$	4,073	15	%	$	301
Sales and marketing	10,328		34		9,786		35		542
General and administrative	2,098		7		2,069		7		29
Restructuring	300		1		163		1		137
Total operating expenses	$	17,100	56	%	$	16,091	58	%	$	1,009

Research and development expenses as a percentage of total revenues during the three months ended October 31, 2025 were consistent with the same period a year ago and decreased by approximately one percent during the nine months ended October 31, 2025 compared to the same period a year ago, primarily as a result of employee-related cost growth being outpaced by revenue growth. For the three and nine months ended October 31, 2025, the increase in research and development expenses in absolute dollars was primarily due to an increase in employee-related costs, including stock-based compensation expense, primarily in lower cost regions.

We expect that research and development expenses will likely remain consistent as a percentage of revenues over time as we continue to invest in the development of new, and improve existing, technologies, including AI, agents and our Data Cloud service offerings, and the integration of acquired technologies.

Sales and marketing expenses as a percentage of total revenues during the three and nine months ended October 31, 2025 decreased by approximately one percent compared to the same periods a year ago, primarily as a result of employee-related cost growth being outpaced by revenue growth during the three months ended October 31, 2025 and a decrease in advertising and marketing events during the nine months ended October 31, 2025, respectively. For the three and nine months ended October 31, 2025, the increase in sales and marketing expenses in absolute dollars was primarily due to an increase in employee-related costs.

We expect that sales and marketing expenses may decrease as a percentage of revenues over time as we continue to focus on leveraging our self-serve and partner-led channels and increasing our sales productivity, which includes the use of AI and agents.

General and administrative expenses as a percentage of total revenues during the three months ended October 31, 2025 decreased by approximately two percent compared to the same period a year ago due to decreased employee-related costs and decreased bad debt expenses and during the nine months ended October 31, 2025 were consistent compared to the same period a year ago. For the three months ended October 31, 2025, the decrease in general and administrative expenses in absolute dollars was primarily due to a decrease in bad debt expenses. For the nine months ended October 31, 2025, the general and administrative expenses were relatively flat in absolute dollars compared to the same period a year ago.

We expect that general and administrative expenses may decrease as a percentage of revenues over time as we continue to invest in process efficiency initiatives, which includes the use of AI and agents.

In the three and nine months ended October 31, 2025, approximately $260 million and $300 million, respectively, of costs were incurred related to our restructuring initiatives, which were primarily related to employee transitions, severance payments and employee benefits.

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Other Income and Expense


	Three Months Ended October 31,				Variance
(in millions)	2025		2024		Dollars


Gains (losses) on strategic investments, net	$	263	$	(217)	$	480
Other income	61		70		(9)


	Nine Months Ended October 31,				Variance
(in millions)	2025		2024		Dollars


Gains (losses) on strategic investments, net	$	206	$	(217)	$	423
Other income	224		282		(58)

Gains (losses) on strategic investments, net primarily reflect mark-to-market and observable price adjustments for equity securities, offset by impairments. For the three months ended October 31, 2025, our strategic investment portfolio gains were primarily driven by unrealized gains on privately held equity investments of $428 million, partially offset by impairments on privately held investments of $169 million. For the nine months ended October 31, 2025, our strategic investment portfolio gains were primarily driven by unrealized gains on privately held equity investments of $488 million and realized gains on sales of securities of $23 million, partially offset by impairments on privately held investments of $302 million.

Other income primarily consists of investment income, partially offset by interest expense on our debt and finance leases. Interest expense was $67 million for the three months ended October 31, 2025 and 2024, respectively, and $202 million and $204 million for the nine months ended October 31, 2025 and 2024, respectively.

Provision For Income Taxes


	Three Months Ended October 31,						Variance
(in millions)	2025			2024			Dollars
Provision for income taxes	$	(426)		$	(219)		$	(207)
Effective tax rate	17		%	13		%


	Nine Months Ended October 31,						Variance
(in millions)	2025			2024			Dollars
Provision for income taxes	$	(1,378)		$	(961)		$	(417)
Effective tax rate	20		%	18		%

We recorded a tax provision of $426 million and $219 million for the three months ended October 31, 2025 and 2024, respectively, and a tax provision of approximately $1.4 billion and $961 million for the nine months ended October 31, 2025 and 2024, respectively. Our effective tax rates increased from a year ago primarily due to lower excess tax benefits from stock-based compensation. The effective tax rate may fluctuate due to changes in our domestic and foreign earnings, or material discrete tax items, or a combination of these factors resulting from transactions or events, including, for example, acquisitions, changes to our operating structure, and other macroeconomic factors.

The Company may record additional impacts to its tax provision in the subsequent quarters as it continues to analyze the new law, other factors such as changes from its business operations, financial results and forecasts, and interrelated items including changes to our valuation allowance assessment related to Corporate Alternative Minimum Tax (“CAMT”).

Liquidity and Capital Resources

As of October 31, 2025, our principal sources of liquidity were cash, cash equivalents and marketable securities totaling $11.3 billion and accounts receivable of $5.5 billion. Our cash equivalents and marketable securities are comprised primarily of corporate notes and obligations, U.S. treasury securities, U.S. agency obligations, asset-backed securities, foreign government obligations, mortgage-backed obligations, covered bonds, time deposits, money market mutual funds and municipal securities. Our Revolving Loan Credit Agreement (as defined below), which provides the ability to borrow up to $5.0 billion in unsecured financing (the “Credit Facility”) as of October 31, 2025, also serves as a source of liquidity.

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Net cash provided by operating activities could continue to be affected by various risks and uncertainties, including, but not limited to, the risks detailed in Part II, Item 1A, “Risk Factors.” We believe our existing cash, cash equivalents, marketable securities, cash provided by operating activities, unbilled amounts related to contracted noncancellable subscription agreements, which are not reflected on the balance sheet, and, if necessary, our borrowing capacity under our Credit Facility will be sufficient to meet our working capital, capital expenditure and debt maintenance needs over the next 12 months and thereafter.

In the future, we may enter into arrangements to acquire or invest in complementary businesses, services, technologies and intellectual property rights. To facilitate these acquisitions or investments, we may seek additional equity or debt financing, which may not be available on terms favorable to us or at all, impacting our ability to complete subsequent acquisitions or investments. For example, we entered into certain credit agreements in connection with our acquisition of Informatica. See discussion in “Debt” below.

We expect lower cash taxes primarily due to the immediate deduction of domestic research and development expenditures allowed by the OBBBA.

Cash Flows

For the three and nine months ended October 31, 2025 and 2024, our cash flows were as follows (in millions):


3	Three Months Ended October 31,				Nine Months Ended October 31,
	2025		2024		2025		2024
Net cash provided by operating activities	$	2,316	$	1,983	$	9,532	$	9,122
Net cash provided by (used in) investing activities	519		(217)		117		(227)
Net cash used in financing activities	(4,244)		(1,446)		(9,667)		(9,356)

Operating Activities

The net cash provided by operating activities during the nine months ended October 31, 2025 was primarily comprised of net income of $5.5 billion, adjusted for non-cash items, including $2.5 billion of depreciation and amortization and $2.4 billion of stock-based compensation expense. Net cash provided by operating activities can be significantly impacted by factors such as growth in new business, timing of cash receipts from customers, vendor payment terms and timing of payments to vendors. Net cash provided by operating activities during the nine months ended October 31, 2025 was further benefited by the changes in accounts receivable, net of $6.5 billion, partially offset by the change in unearned revenue of $5.7 billion and the change in accounts payable and accrued expenses and other liabilities of $1.2 billion. As our business continues to grow, and assuming our expenses remain in line with or less than our revenue growth, we expect to continue to see growth in net cash provided by operating activities.

The net cash provided by operating activities during the nine months ended October 31, 2024 was primarily comprised of net income of $4.5 billion, adjusted for non-cash items, including $2.6 billion of depreciation and amortization and $2.4 billion of stock-based compensation expense. Net cash provided by operating activities during the nine months ended October 31, 2024 was further benefited by the changes in accounts receivable, net of $6.7 billion partially offset by the change in unearned revenue of $5.6 billion and the change in accounts payable and accrued expenses and other liabilities of $503 million.

Investing Activities

The net cash provided by investing activities during the nine months ended October 31, 2025 was primarily related to net inflows from marketable securities activity of $2.9 billion, partially offset by net outflows from strategic investment activity of $1.3 billion and capital expenditures of $453 million.

The net cash used in investing activities during the nine months ended October 31, 2024 was primarily related to net outflows for acquisitions of $517 million, net outflows from strategic investment activity of $256 million and capital expenditures of $504 million, partially offset by net inflows from marketable securities activity of $1.1 billion.

Financing Activities

The net cash used in financing activities during the nine months ended October 31, 2025 was primarily related to $8.7 billion used for repurchases of common stock and $1.2 billion related to payments of dividends, partially offset by $765 million of proceeds from equity plans.

The net cash used in financing activities during the nine months ended October 31, 2024 was primarily related to $7.8 billion used for repurchases of common stock, $1.0 billion related to repayments of debt and $1.2 billion related to payments of dividends, partially offset by $1.1 billion from proceeds from equity plans.

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Debt

As of October 31, 2025, we had senior unsecured debt outstanding, with maturities starting in April 2028 and extending through July 2061 with a total carrying value of $8.4 billion. We were in compliance with all debt covenants as of October 31, 2025.

In October 2024, we entered into a Credit Agreement with the lenders and issuing lenders party thereto, and Bank of America, N.A., as administrative agent (the “Revolving Loan Credit Agreement”). The Revolving Loan Credit Agreement replaced the Credit Agreement, dated December 23, 2020 (as amended, the “Prior Credit Agreement”), among us, the lenders and the issuing lenders party thereto, and Citibank, N.A., as administrative agent, which provided for a $3.0 billion unsecured revolving credit facility that was scheduled to mature on December 23, 2025. There were no outstanding borrowings under the Prior Credit Agreement.

The Revolving Loan Credit Agreement provides for a $5.0 billion Credit Facility and matures in October 2029. We may use the proceeds of future borrowings under the Credit Facility for general corporate purposes. There were no outstanding borrowings under the Credit Facility as of October 31, 2025.

In June 2025, we entered into a 364-Day Credit Agreement that provides us with the ability to borrow up to $4.0 billion (the “364-Day Informatica Credit Agreement”) and a three-year Credit Agreement that provides us with the ability to borrow up to $2.0 billion (the “Three-Year Informatica Credit Agreement” and, together with the 364-Day Informatica Credit Agreement, the “Informatica Credit Agreements”), both on an unsecured basis, to finance a portion of the cash consideration for the acquisition of Informatica, the repayment of certain debt of Informatica and the payment of fees, costs and expenses related thereto. The availability and funding of each credit agreement is subject to certain exceptions, qualifications and certain other conditions. There were no outstanding borrowings under the Informatica Credit Agreements as of October 31, 2025. In November 2025, as part of the acquisition of Informatica, we borrowed the full $6.0 billion available under the credit facilities associated with the Informatica Credit Agreements.

We do not have any special purpose entities and we do not engage in off-balance sheet financing arrangements.

Share Repurchase Program

Our Board of Directors (the “Board”) authorized a program to repurchase shares of the Company's common stock (the "Share Repurchase Program"), which commenced in August 2022. In September 2025, the Board authorized an additional $20.0 billion in repurchases under the Share Repurchase Program, for an aggregate total authorized of $50.0 billion. The Share Repurchase Program does not have a fixed expiration date and does not obligate us to acquire any specific number of shares.

We repurchased the following under the Share Repurchase Program (in millions, except average price per share):


	2025					2024
	Shares	Average price per share		Amount		Shares	Average price per share		Amount



Three months ended April 30	10	$	273.42	$	2,681	7	$	293.00	$	2,168
Three months ended July 31	8	$	269.96

Salesforce, Inc. 10-Q