Salesforce Delivers Record Fourth Quarter Fiscal 2026 Results

SAN FRANCISCO--( BUSINESS WIRE)--Salesforce (NYSE: CRM), the world's #1 AI CRM, today announced results for its fourth quarter and full fiscal year ended January 31, 2026.

Financial Highlights

“We delivered a phenomenal quarter to close out a record fiscal 2026, delivering $41.5 billion in revenue, up 10% year-over-year and we passed an incredible milestone, with $72 billion in total RPO, up 14% year-over-year,” said Marc Benioff, Chair and CEO, Salesforce. “We’ve rebuilt Salesforce to become the operating system for the Agentic Enterprise, bringing humans and agents together on one trusted platform. And the more intelligence moves to where work happens, the more valuable Salesforce becomes. Agentforce ARR reached $800 million, up 169% year-over-year, and we’ve closed 29,000 deals, up 50% quarter-over-quarter. We’ve consumed nearly 20 trillion tokens, and converted them into more than 2.4 billion agentic work units to date, moments where AI wasn't just reasoning — it was delivering real work. Agentic AI is a tailwind for our business, and we’re well on our way to $63 billion in revenue in FY30.”

“Salesforce delivered a record Q4 as our customers' shift to the Agentic Enterprise surges, fueling NNAOV acceleration in H2 FY26,” said Robin Washington, President and Chief Financial and Operating Officer, Salesforce. “Our performance makes us even more confident in our path to reaccelerate organic revenue growth in H2 FY27. By driving adoption of Agentforce and Data 360 across our platform, we are building a powerful engine that converts raw intelligence into enterprise work. Reflecting our strong trajectory, we’ve increased our authorization to $50 billion for share repurchases and increased our quarterly dividend, reinforcing our commitment to delivering significant shareholder value.”

Salesforce Company Highlights

Salesforce Announces Increase to Quarterly Dividend

Salesforce’s Board of Directors declared a quarterly cash dividend of $0.44 per share of outstanding common stock, which represents a 5.8% Y/Y increase. The dividend is payable on April 23, 2026 to stockholders of record as of the close of business on April 9, 2026.

Guidance

Salesforce's guidance includes GAAP and non-GAAP financial measures. The following tables summarize Salesforce's guidance for the first quarter fiscal 2027 and full-year fiscal 2027:

Q1 FY27 Guidance

GAAP

Non-GAAP (1)

Revenue

$11.03 - $11.08 billion

N/A

Revenue growth (2)

12% - 13%

10% - 11% CC, $175M Y/Y FX

Includes slightly above 4pts Informatica contribution

Diluted net income per share

$1.77 - $1.79

$3.11 - $3.13

Current remaining performance obligation growth (3)

Approximately 14%

Approximately 13% CC, $100M Y/Y FX

Full Year FY27 Guidance

GAAP

Non-GAAP (1)

Revenue

$45.80 - $46.20 billion

N/A

Revenue growth (2)

10% - 11%

Approximately 10% - 11% CC, $300M Y/Y FX

Includes approximately 3pts Informatica contribution

Subscription & support revenue growth (4)

Slightly under 12%

Approximately 11% CC

Includes approximately 3pts Informatica contribution

Operating margin

20.9%

34.3%

Diluted net income per share

$7.85 - $7.93

$13.11 - $13.19

Operating cash flow growth

Approximately 9% - 10%

N/A

Free cash flow growth

N/A

Approximately 9% - 10%

Capital expenditures

N/A

Approximately 1.5% of revenue

(1) Non-GAAP CC revenue growth, non-GAAP CC remaining performance obligation growth, non-GAAP CC subscription & support revenue growth, non-GAAP operating margin, non-GAAP diluted net income per share, and free cash flow growth are non-GAAP financial measures. See below for an explanation of non-GAAP financial measures. The Company's shares used in computing GAAP diluted net income per share guidance and non-GAAP diluted net income per share guidance excludes any impact to share count from potential Q1 - Q4 FY27 repurchase activity under our share repurchase program.

(2) Revenue FX impact is calculated by taking the current period rates compared to the prior period average rates.

(3) Current remaining performance obligation FX impact is calculated by taking the current period rates compared to the prior period ending rates.

(4) Subscription & support revenue excludes professional services revenue.

The following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year:

Full Year FY27

Guidance

GAAP operating margin (1)

20.9%

Plus

Amortization of purchased intangibles (2)

4.1%

Stock-based compensation expense (2)(3)

9.0%

Restructuring and acquisition-related costs (2)(3)

0.3%

Non-GAAP operating margin (1)

34.3%

(1) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue.

(2) The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY27.

(3) The percentages shown in the restructuring and acquisition-related costs line have been calculated based on charges associated with the Company's restructuring initiatives and acquisition-related costs. Stock-based compensation expense excludes stock-based compensation expense related to the Company's restructuring initiatives, which is included in the restructuring and acquisition-related costs line.

The following is a per share reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share guidance for the next quarter and the full year:

Fiscal 2027

FY27

GAAP diluted net income per share range (1)(2)

$1.77 - $1.79

$7.85 - $7.93

Plus

Amortization of purchased intangibles

0.59

2.00

Stock-based compensation expense

1.03

4.41

Restructuring and acquisition-related costs (3)

0.05

0.14

Less

Income tax effects and adjustments (4)

(0.33

)

(1.29

)

Non-GAAP diluted net income per share (2)

$3.11 - $3.13

$13.11 - $13.19

Shares used in computing basic net income per share (millions) (5)

931

938

Shares used in computing diluted net income per share (millions) (5)

937

943

(1) The Company's GAAP tax provision is expected to be approximately 21.0% for the three months ended April 30, 2026 and for the year ended January 31, 2027. The GAAP tax rates may fluctuate due to discrete tax items, changes in valuation allowance assessment, future acquisitions, or other transactions.

(2) The Company's projected GAAP and non-GAAP diluted net income per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses. The impact of future gains or losses from the Company’s strategic investment portfolio could be material.

(3) The estimated impact to GAAP diluted net income per share is in connection with the Company's restructuring initiatives and acquisition-related costs.

(4) The Company’s non-GAAP tax provision uses a long-term projected tax rate of 20.5%, which reflects currently available information and could be subject to change.

(5) The Company's shares used in computing GAAP net income per share guidance and non-GAAP net income per share guidance excludes any impact to share count from potential Q1 - Q4 FY27 repurchase activity under our share repurchase program.

For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.

Management will provide further commentary around these guidance assumptions on its earnings call.

Product Releases and Enhancements

Salesforce releases major updates for our core platform and apps three times a year, with additional updates happening regularly across our portfolio. These releases are a result of significant research and development investments made over multiple years, and are designed to help customers drive cost savings, boost efficiency, and build trust.

Salesforce leaders will participate in a Q4 FY26 Agentforce 360 Platform Evolution & Innovation webinar on Friday, February 27, 2026, at 8:00 AM PT / 11:00 AM ET. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.

To learn more about our newest innovations and product release highlights, including our latest Spring 2026 Product Release, see FY26 Q4 Product Releases and Announcements at https://www.salesforce.com/news/stories/fy26-q4-highlights/ and see our latest major release at www.salesforce.com/releases.

Environmental, Social, and Governance (ESG) Strategy

To learn more about our latest initiatives and priorities, review our Stakeholder Impact Report at https://salesforce.com/stakeholder-impact-report.

TBPN Appearance

Marc Benioff is expected to appear on TBPN (Technology Business Programming Network) at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss the company’s recent performance and vision for the Agentic Enterprise. A livestream and replay will be available at https://x.com/tbpn.

Quarterly Earnings Show

Salesforce plans to host a live "earnings show" broadcast at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.

About Salesforce

Salesforce helps organizations of any size become agentic enterprises - integrating humans, agents, apps, and data on a trusted, unified platform to unlock unprecedented growth and innovation. Visit www.salesforce.com for more information.

"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements about the Company's financial and operating results and guidance, which include, but are not limited to, expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, net income per share, operating cash flow growth, operating margin, expected revenue growth, expected foreign currency exchange rate impact, expected current remaining performance obligation growth, expected tax rates or provisions, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, strategic investments, expected restructuring expense or charges and expected timing of product releases and enhancements. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results or outcomes could differ materially and adversely from those expressed or implied by our forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements.

The risks and uncertainties referred to above include -- but are not limited to -- risks associated with:

Further information on these and other factors that could affect the Company’s actual results or outcomes is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings it makes with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Financials section of the Company’s website at investor.salesforce.com/financials/.

Salesforce, Inc. assumes no obligation and does not intend to revise or update publicly any forward-looking statements for any reason, except as required by law.

Consolidated Statements of Operations

(in millions, except per share data)

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Revenues:

(unaudited)

Subscription and support

10,675

9,451

39,388

35,679

Professional services and other

526

542

2,137

2,216

Total revenues

11,201

9,993

41,525

37,895

Cost of revenues (1)(2):

Subscription and support

1,875

1,581

6,796

6,198

Professional services and other

633

636

2,474

2,445

Total cost of revenues

2,508

2,217

9,270

8,643

Gross profit

8,693

7,776

32,255

29,252

Operating expenses (1)(2):

Research and development

1,619

1,420

5,993

5,493

Sales and marketing

4,017

3,471

14,345

13,257

General and administrative

902

767

3,000

2,836

Restructuring

286

298

586

461

Total operating expenses

6,824

5,956

23,924

22,047

Income from operations

1,869

1,820

8,331

7,205

Gains (losses) on strategic investments, net

811

1,017

(121

)

Other income (expense)

(52

)

172

354

Income before provision for income taxes

2,628

1,988

9,520

7,438

Provision for income taxes

(685

)

(280

)

(2,063

)

(1,241

)

Net income

1,943

1,708

7,457

6,197

Basic net income per share

2.08

1.78

7.85

6.44

Diluted net income per share (3)

2.07

1.75

7.80

6.36

Shares used in computing basic net income per share

935

959

950

962

Shares used in computing diluted net income per share

940

974

956

974

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

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Cost of revenues

224

150

692

750

Sales and marketing

302

232

995

901

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

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Cost of revenues

147

132

553

518

Research and development

336

277

1,162

1,091

Sales and marketing

413

294

1,287

1,205

General and administrative

187

100

478

367

Restructuring

(3) During the three months ended January 31, 2026 and 2025, gains on strategic investments impacted GAAP diluted net income per share by $0.66 and $0.07 based on a U.S. tax rate of 23.5% and 24.0%, respectively, and non-GAAP diluted net income per share by $0.67 and $0.08 based on a non-GAAP tax rate of 22.0%. During the fiscal year ended January 31, 2026 and 2025, gains (losses) on strategic investments impacted GAAP diluted EPS by $0.81 and $(0.09) based on a U.S. tax rate of 23.5% and 24.0%, respectively, and non-GAAP diluted EPS by $0.83 and $(0.10) based on a non-GAAP tax rate of 22.0%.

Salesforce, Inc.

Consolidated Statements of Operations

(As a percentage of total revenues)

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Revenues:

(unaudited)

Subscription and support

Professional services and other

Total revenues

100

Cost of revenues (1)(2):

Subscription and support

Professional services and other

Total cost of revenues

Gross profit

Operating expenses (1)(2):

Research and development

Sales and marketing

General and administrative

Restructuring

Total operating expenses

Income from operations

Gains on strategic investments, net

Other income (expense)

)

Income before provision for income taxes

Provision for income taxes

)

Net income

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

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Cost of revenues

Sales and marketing

(2) Amounts include stock-based compensation expense as a percentage of total revenues, as follows:

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Cost of revenues

Research and development

Sales and marketing

General and administrative

Restructuring

Salesforce, Inc.

Condensed Consolidated Balance Sheets

(in millions)

January 31, 2026

January 31, 2025

Assets

(unaudited)

Current assets:

Cash and cash equivalents

7,327

8,848

Marketable securities

2,238

5,184

Accounts receivable, net

14,339

11,945

Costs capitalized to obtain revenue contracts, net

2,075

1,971

Prepaid expenses and other current assets

2,243

1,779

Total current assets

28,222

29,727

Property and equipment, net

3,120

3,236

Operating lease right-of-use assets, net

2,003

2,157

Noncurrent costs capitalized to obtain revenue contracts, net

2,985

2,475

Strategic investments

7,591

4,852

Goodwill

57,941

51,283

Intangible assets acquired through business combinations, net

6,815

4,428

Deferred tax assets and other assets, net

3,628

4,770

Total assets

112,305

102,928

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable, accrued expenses and other liabilities

8,253

6,658

Operating lease liabilities, current

548

579

Unearned revenue

24,317

20,743

Debt, current

4,000

Total current liabilities

37,118

27,980

Noncurrent debt

10,439

8,433

Noncurrent operating lease liabilities

2,189

2,380

Other noncurrent liabilities

3,417

2,962

Total liabilities

53,163

41,755

Stockholders’ equity:

Common stock

Treasury stock, at cost

(32,228

)

(19,507

)

Additional paid-in capital

68,835

64,576

Accumulated other comprehensive income (loss)

313

(266

)

Retained earnings

22,221

16,369

Total stockholders’ equity

59,142

61,173

Total liabilities and stockholders’ equity

112,305

102,928

Salesforce, Inc.

Consolidated Statements of Cash Flows

(in millions)

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Operating activities:

(unaudited)

Net income

1,943

1,708

7,457

6,197

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization (1)

1,120

877

3,631

3,477

Amortization of costs capitalized to obtain revenue contracts, net

560

527

2,197

2,095

Stock-based compensation expense

1,083

803

3,509

3,183

(Gains) losses on strategic investments, net

(811

)

(96

)

(1,017

)

121

Changes in assets and liabilities, net of business combinations:

Accounts receivable, net

(8,632

)

(7,171

)

(2,160

)

(490

)

Costs capitalized to obtain revenue contracts, net

(1,492

)

(1,016

)

(2,811

)

(2,121

)

Prepaid expenses and other current assets and other assets

936

(232

)

819

(1,495

)

Accounts payable and accrued expenses and other liabilities

2,238

1,592

1,014

1,089

Operating lease liabilities

(152

)

(161

)

(567

)

(548

)

Unearned revenue

8,671

7,139

2,924

1,584

Net cash provided by operating activities

5,464

3,970

14,996

13,092

Investing activities:

Business combinations, net of cash acquired

(8,236

)

(2,217

)

(9,268

)

(2,734

)

Purchases of strategic investments

(512

)

(165

)

(1,958

)

(539

)

Sales of strategic investments

184

126

Purchases of marketable securities

(193

)

(1,838

)

(3,763

)

(6,879

)

Sales of marketable securities

225

491

4,414

4,143

Maturities of marketable securities

939

2,395

3,378

Capital expenditures

(141

)

(154

)

(594

)

(658

)

Net cash used in investing activities

(8,707

)

(2,936

)

(8,590

)

(3,163

)

Financing activities:

Proceeds from issuance of debt, net of issuance costs

6,000

Repurchases of common stock

(3,937

)

(76

)

(12,596

)

(7,829

)

Payments for taxes related to net share settlement of equity awards

(212

)

(351

)

Proceeds from employee stock plans

274

484

1,039

1,540

Principal payments on financing obligations

(146

)

(98

)

(584

)

(603

)

Repayments of debt

(1,000

)

Payments of dividends and dividend equivalents

(391

)

(383

)

(1,587

)

(1,537

)

Net cash provided by (used in) financing activities

1,588

(73

)

(8,079

)

(9,429

)

Effect of exchange rate changes

(110

)

152

(124

)

Net increase (decrease) in cash and cash equivalents

(1,651

)

851

(1,521

)

376

Cash and cash equivalents, beginning of period

8,978

7,997

8,848

8,472

Cash and cash equivalents, end of period

7,327

8,848

7,327

8,848

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

Salesforce, Inc.

Additional Metrics

(Unaudited)

Supplemental Revenue Analysis

Remaining Performance Obligation

Remaining performance obligation ("RPO") 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. RPO 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 RPO denominated in foreign currencies are revalued each period based on the period end exchange rates. The portion of RPO that is unbilled is not recorded on the condensed consolidated balance sheets.

RPO consisted of the following (in billions):

Current

Noncurrent

Total

As of January 31, 2026 (1)

35.1

37.3

72.4

As of October 31, 2025

29.4

30.1

59.5

As of July 31, 2025

29.4

30.5

59.9

As of April 30, 2025

29.6

31.3

60.9

As of January 31, 2025

30.2

33.2

63.4

(1) Includes approximately $2.2 billion of remaining performance obligation related to Informatica, Inc. (“Informatica”).

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

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Unearned revenue, beginning of period

14,996

13,472

20,743

19,003

Billings and other (1)

20,522

17,264

45,099

39,635

Revenue recognized over time

(10,313

)

(9,182

)

(39,041

)

(35,628

)

Revenue recognized at a point in time

(888

)

(811

)

(2,484

)

(2,267

)

Unearned revenue, end of period

24,317

20,743

24,317

20,743

(1) Other includes, for example, the impact of foreign currency translation as well as contributions from contract assets and business combinations, including $651 million from Informatica as of the acquisition date.

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 January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Agentforce Sales

2,333

2,134

9,028

8,322

Agentforce Service

2,531

2,327

9,818

9,054

Agentforce 360 Platform, Slack and Other (2)

2,655

1,918

8,882

7,247

Agentforce Marketing and Agentforce Commerce

1,377

1,357

5,428

5,281

Agentforce Integration and Agentforce Analytics

1,779

1,715

6,232

5,775

10,675

9,451

39,388

35,679

(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.

(2) Agentforce 360 Platform, Slack and Other revenue for the year ended January 31, 2026 includes $388 million in subscription and support revenue from Informatica, which the Company acquired in November 2025.

Total Revenue by Geographic Locations

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

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Americas

7,285

6,660

27,193

25,143

Europe

2,781

2,334

10,017

8,891

Asia Pacific

1,135

999

4,315

3,861

11,201

9,993

41,525

37,895

Constant Currency Growth Rates

Subscription and support revenues constant currency growth rates by the Company's service offerings were as follows:

Three Months Ended

January 31, 2026

Compared to Three Months

Ended January 31, 2025

Three Months Ended

October 31, 2025

Compared to Three Months

Ended October 31, 2024

Three Months Ended

January 31, 2025

Compared to Three Months

Ended January 31, 2024

Agentforce Sales

Agentforce Service

Agentforce 360 Platform, Slack and Other

37%

19%

12%

Agentforce Marketing and Agentforce Commerce

(1)%

Agentforce Integration and Agentforce Analytics

Total growth

11%

Revenue constant currency growth rates by geographical region were as follows:

Three Months Ended

January 31, 2026

Compared to Three Months

Ended January 31, 2025

Three Months Ended

October 31, 2025

Compared to Three Months

Ended October 31, 2024

Three Months Ended

January 31, 2025

Compared to Three Months

Ended January 31, 2024

Americas

Europe

13%

Asia Pacific

13%

11%

14%

Total growth

10%

Current remaining performance obligation constant currency growth rates were as follows:

January 31, 2026

Compared to

January 31, 2025

October 31, 2025

Compared to

October 31, 2024

January 31, 2025

Compared to

January 31, 2024

Total growth

13%

11%

Salesforce, Inc.

GAAP Results Reconciled to Non-GAAP Results

The following tables reflect selected GAAP results reconciled to Non-GAAP results.

(in millions, except per share data)

(Unaudited)

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Non-GAAP income from operations

GAAP income from operations

1,869

1,820

8,331

7,205

Plus:

Amortization of purchased intangibles (1)

526

382

1,687

1,651

Stock-based compensation expense (2)(3)

1,083

803

3,480

3,181

Restructuring and acquisition-related costs

358

298

658

461

Non-GAAP income from operations

3,836

3,303

14,156

12,498

Non-GAAP operating margin as a percentage of revenues

Total revenues

11,201

9,993

41,525

37,895

GAAP operating margin (4)

16.7

18.2

20.1

19.0

Non-GAAP operating margin (4)

34.2

33.1

34.1

33.0

Non-GAAP net income

GAAP net income

1,943

1,708

7,457

6,197

Plus:

Amortization of purchased intangibles (1)

526

382

1,687

1,651

Stock-based compensation expense (2)(3)

1,083

803

3,480

3,181

Restructuring and acquisition-related costs

358

298

658

461

Income tax effects and adjustments

(326

)

(484

)

(1,313

)

(1,560

)

Non-GAAP net income

3,584

2,707

11,969

9,930

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Non-GAAP diluted net income per share

GAAP diluted net income per share

2.07

1.75

7.80

6.36

Plus:

Amortization of purchased intangibles (1)

0.56

0.39

1.76

1.70

Stock-based compensation expense (2)(3)

1.15

0.82

3.64

3.27

Restructuring and acquisition-related costs

0.38

0.31

0.69

0.47

Income tax effects and adjustments

(0.35

)

(0.49

)

(1.37

)

(1.60

)

Non-GAAP diluted net income per share

3.81

2.78

12.52

10.20

Shares used in computing non-GAAP diluted net income per share

940

974

956

974

(1) Amortization of purchased intangibles was as follows:

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Cost of revenues

224

150

692

750

Sales and marketing

302

232

995

901

526

382

1,687

1,651

(2) Stock-based compensation expense, excluding stock-based compensation expense related to restructuring, was as follows:

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Cost of revenues

147

132

553

518

Research and development

336

277

1,162

1,091

Sales and marketing

413

294

1,287

1,205

General and administrative

187

100

478

367

1,083

803

3,480

3,181

(3) Stock-based compensation expense included in the GAAP to non-GAAP reconciliation tables above excludes stock-based compensation expense related to restructuring initiatives for each of the three months ended January 31, 2026 and 2025 of $0 million and for the fiscal year ended January 31, 2026 and 2025 of $29 million and $2 million, respectively, which are included in the restructuring line.

(4) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the amortization of purchased intangibles, stock-based compensation expense, charges associated with the Company's restructuring initiatives and acquisition-related costs.

Salesforce, Inc.

Computation of Basic and Diluted GAAP and Non-GAAP Net Income Per Share

(in millions, except per share data)

(Unaudited)

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

GAAP Basic Net Income Per Share

Net income

1,943

1,708

7,457

6,197

Basic net income per share

2.08

1.78

7.85

6.44

Shares used in computing basic net income per share

935

959

950

962

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Non-GAAP Basic Net Income Per Share

Non-GAAP net income

3,584

2,707

11,969

9,930

Non-GAAP basic net income per share

3.83

2.82

12.60

10.32

Shares used in computing non-GAAP basic net income per share

935

959

950

962

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

GAAP Diluted Net Income Per Share

Net income

1,943

1,708

7,457

6,197

Diluted net income per share

2.07

1.75

7.80

6.36

Shares used in computing diluted net income per share

940

974

956

974

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

Non-GAAP Diluted Net Income Per Share

Non-GAAP net income

3,584

2,707

11,969

9,930

Non-GAAP diluted net income per share

3.81

2.78

12.52

10.20

Shares used in computing non-GAAP diluted net income per share

940

974

956

974

Supplemental Cash Flow Information

Computation of Free Cash Flow, a Non-GAAP Measure

(in millions)

(Unaudited)

Three Months Ended January 31,

Fiscal Year Ended January 31,

2026

2025

2026

2025

GAAP net cash provided by operating activities

5,464

3,970

14,996

13,092

Capital expenditures

(141

)

(154

)

(594

)

(658

)

Free cash flow

5,323

3,816

14,402

12,434

Non-GAAP Financial Measures: This press release includes information about non-GAAP operating margin, non-GAAP net income per share, non-GAAP tax rates, free cash flow, constant currency revenue and revenue growth rate, constant currency subscription and support revenue growth rate and constant currency current remaining performance obligation growth rates (collectively the “non-GAAP financial measures”). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s condensed consolidated financial statements prepared in accordance with GAAP. Management uses both GAAP and non-GAAP financial measures when planning, monitoring and evaluating the Company’s performance.

The primary purpose of using non-GAAP financial measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does. Management believes that supplementing GAAP disclosure with non-GAAP disclosure provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further to the extent that other companies use similar methods in calculating non-GAAP financial measures, the provision of supplemental non-GAAP information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP operating results.

Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the following items: stock-based compensation expense, amortization of acquisition-related intangibles and charges associated with the Company's restructuring initiatives. Non-GAAP net income per share excludes, to the extent applicable, the impact of the following items: stock-based compensation expense, amortization of purchased intangibles, charges related to the Company's restructuring initiatives and income tax adjustments. These items are excluded because the decisions that give rise to them are not made to increase revenue in a particular period, but instead for the Company’s long-term benefit over multiple periods.

As described above, the Company excludes or adjusts for the following in its non-GAAP results and guidance:

The Company presents constant currency information to provide a framework for assessing how the Company's underlying business performed excluding the effect of foreign currency rate fluctuations. To present constant currency revenue growth rates, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the weighted average exchange rate for the quarter being compared to rather than the actual exchange rates in effect during that period. To present current remaining performance obligation growth rates on a constant currency basis, current remaining performance obligation balances in local currencies in previous comparable periods are converted using the United States dollar currency exchange rate as of the most recent balance sheet date.

The Company defines the non-GAAP measure free cash flow as GAAP net cash provided by operating activities, less capital expenditures.

Other Metrics: The Company defines Agentforce and Data 360 annual recurring revenue ("ARR") as the annualized recurring value of active Data 360 and certain generative artificial intelligence ("AI") subscription agreements, including those for Agentforce and generative AI products and features, that were executed at the end of the reporting period.

The Company defines Net New Annual Order Value ("NNAOV") as the net change in the annual order value of our customer subscription agreements during a given period. NNAOV is calculated as the sum of: (i) the annualized contract value from new and existing customers who enter into subscription agreements during the period; less (ii) the reduction in annualized order value from customer cancellations, non-renewals, or downgrades during the period.

The Company defines an Agentic Work Unit ("AWU") as a measure of discrete tasks executed by AI agents in production across the Salesforce platform, including Agentforce and Slack. AWUs represent the conversion of generative AI capabilities into measurable business outputs, such as resolving customer cases, updating records or triggering automated workflows.