Salesforce, Inc.

Salesforce, Inc. is a global leader in customer relationship management (CRM) technology, helping organizations of any size become agentic enterprises. The company operates in the highly competitive, rapidly evolving, and fragmented market for enterprise applications and platform services, which is subject to changing technology with low barriers to entry, shifting customer needs, and frequent introductions of new products and services.

The company's current competitors include vendors of packaged business software, AI-native companies and emerging startups that leverage generative AI and large language models, software companies that provide their product or service free of charge, vendors who offer software tailored to specific services or industries, productivity tool and email providers, and traditional platform development environment companies. Salesforce believes it is uniquely positioned to lead customers through the transformation to an Agentic Enterprise by integrating data, metadata, applications, and agents on a deeply unified platform.

Salesforce generates revenue primarily on a subscription basis from customers accessing its enterprise cloud computing services, which accounted for approximately 95 percent of total revenues for fiscal 2026. The company sells to businesses worldwide through direct sales efforts and indirectly through partners, and enables third parties to use its platform and developer tools to create additional functionality and new applications.

The company's service offerings include Agentforce Sales, an integrated platform that helps sales teams sell faster and manage sales processes; Agentforce Service, which enables companies to deliver customer support at scale; and the Agentforce 360 Platform, Slack and Other, which includes the platform for building business workflows, applications, and AI agents, as well as Slack as the conversational interface. Data 360 serves as the hyperscale, trusted data engine that gives AI agents their context, and the acquisition of Informatica significantly expanded the company's trusted data foundations.

Additional service offerings include Agentforce Marketing and Agentforce Commerce, which help personalize engagement across the customer lifecycle and connect every aspect of commerce; and Agentforce Integration and Agentforce Analytics, which include MuleSoft for integration and automation and Tableau for analytics. The company also offers specialized industry vertical solutions and Starter Suite for small and medium-size businesses.

During fiscal 2026, the company completed the acquisition of Regrello Corp. in October 2025 and the acquisition of Informatica, Inc. in November 2025. In the third quarter of fiscal 2025, the company introduced Agentforce, a new layer of its trusted platform that enables companies to build and deploy AI agents. The company also undertook various restructuring initiatives to improve operating margins, including a reduction of its workforce, office space, and data centers within certain markets.

For fiscal 2026, total revenue was $41.5 billion ¹, an increase of ten percent year-over-year. Income from operations was $8.3 billion ² compared to $7.2 billion ³ from a year ago, and operating margin increased to approximately 20 percent ⁴ compared to approximately 19 percent ⁵ in the prior year. Diluted net income per share was $7.80 ⁶ compared to $6.36 ⁷ from a year ago, and cash provided by operations was $15.0 billion ⁸, an increase of 15 percent year-over-year.

The filing contains forward-looking statements regarding future events, future financial performance, anticipated growth, and industry prospects, but no exact revenue, margin, or EPS guidance ranges are provided.

A key growth vector is expanding relationships with existing customers through cross-selling and upselling service offerings, with a focus on driving adoption of multiple service offerings. The company also aims to increase geographic reach by extending go-to-market capabilities globally and selling to new customers in new regions, and plans to continue to develop distribution channels through new and existing marketplaces and partners. Additionally, the company is focusing on delivering innovative solutions in new categories based on customer needs, including out-of-the-box solutions for specific industries such as financial services, healthcare and life sciences, and manufacturing.

Another major growth vector is the continued investment in generative and agentic AI across all products, which management believes will change how customers help their customers. The company is leveraging its partner ecosystem, including independent software vendors and system integrators, to accelerate its reach into new markets and industries. The company also continues to evaluate opportunities to acquire or invest in complementary businesses, services, technologies, and intellectual property to complement organic innovation and advance the development of the Agentforce 360 Platform.

The company is focused on reducing operating expenses to improve operating margin. Management expects to continue to experience improvements in operating expenses as a percentage of revenue, which could include various restructuring initiatives or measured hiring initiatives to drive operational efficiencies. The company expects that research and development expenses will likely remain consistent as a percentage of revenue over time, while sales and marketing expenses and general and administrative expenses may decrease as a percentage of revenues over time as the company continues to focus on leveraging self-serve and partner-led channels and investing in process efficiency initiatives, including the use of AI and agents.

The company continues to invest in and expand the deployment of Hyperforce, which allows its platform and applications to be delivered rapidly and reliably to locations worldwide. The company also plans to upgrade or replace various internal systems to scale with overall growth. As of January 31, 2026, the company had 83,334 employees ⁹. The company has undertaken various restructuring initiatives, including a workforce reduction, select data center exits, and office space reductions within certain markets, and does not expect to incur significant additional charges in connection with these initiatives in the near term.

For fiscal 2026, research and development expenses were $5.993 billion ¹⁰. Capital expenditures were $594 million ¹¹ for fiscal 2026. In September 2025, the Board authorized an additional $20.0 billion ¹² in repurchases under the Share Repurchase Program, for an aggregate total authorized of $50.0 billion ¹³. In February 2026, the Board authorized $50.0 billion ¹⁴ in share repurchases under the Share Repurchase Program that replaced the previous remaining unpurchased authorization. The company paid approximately $1.6 billion ¹⁵ in dividends and dividend equivalents for fiscal 2026, and in February 2026, the Board declared a $0.44 ¹⁶ dividend per share payable on April 23, 2026.

The company faces headwinds from volatile and significantly weakened global economic conditions, which have affected and may continue to affect the rate of IT spending, delay customer purchasing decisions, and reduce the value and duration of customer subscription contracts. Geopolitical developments, such as the war in Ukraine and the regional conflict in the Middle East, have increased levels of political and economic unpredictability globally. The company also faces exposure to fluctuations in foreign currency exchange rates, which have in the past and could in the future negatively impact financial results and cash flows.

The company faces structural headwinds from the intensely competitive markets in which it participates, with competitors including AI-native companies and emerging startups that may bypass traditional business process workflows. The company also faces risks related to the development, deployment, and use of AI in its offerings, including potential reputational harm, legal liability, and increased compliance costs from evolving regulations such as the EU AI Act. Additionally, the company's ability to realize the expected benefits of acquisitions, such as the Informatica acquisition, is subject to risks including difficulty of integration and potential failure to achieve expected benefits on a timely basis.

The company faces material risks from cybersecurity threats, as its services involve the storage and transmission of customers' proprietary and sensitive data, and it has been and likely will continue to be the target of malicious cyberattacks. Although no material financial impact has been identified to date, the filing notes that threat actors are using AI technologies to enhance the sophistication of attacks. The company also faces significant risks from its substantial debt obligations, including the $6.0 billion ¹⁷ borrowed under the Informatica Credit Agreements in November 2025, which could impair its ability to obtain additional financing and make it more vulnerable to downturns. Additionally, the company is exposed to risks from its strategic investment portfolio, which had a combined carrying value of $7.6 billion ¹⁸ as of January 31, 2026, including two privately held investments representing 35 percent ¹⁹ of the portfolio in aggregate, and is subject to volatility from changes in market prices and impairments. The company also faces risks from the evolving regulatory landscape for AI, including the EU AI Act, which could increase compliance costs, restrict features, and expose the company to penalties or litigation.

Management's message emphasizes the company's position as a global leader in CRM technology and its focus on becoming an agentic enterprise. Key themes include the introduction and momentum of Agentforce, the company's AI-powered platform, and the strategic importance of the Informatica acquisition to expand trusted data foundations. Management highlights several key priorities for the period ahead: expanding relationships with existing customers through cross-selling and upselling, increasing geographic reach, focusing on industries and new products, leveraging the partner ecosystem, and promoting strong customer adoption to reduce attrition. The filing states that management expects to continue to experience improvements in operating expenses as a percentage of revenue, which could include various restructuring initiatives or measured hiring initiatives to drive operational efficiencies. Management also notes that the company continues to invest for growth, including investing in generative and agentic AI across all products, and continuously looks to expand its leadership role in the cloud computing industry.