Slides
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August 26, 2026 Salesforce Q2 FY27 Earnings
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Introduction Mark Murphy Executive Vice President of Global Investor Relations 2
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"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation 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. 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, results or outcomes could differ materially from those expressed or implied by these forward-looking statements. The risks and uncertainties referred to above include, but are not limited to: the effect of the acquisition of Informatica on our operating results, the market price of our common stock, and our ability to retain and hire key personnel; uncertainties regarding Al technologies and its integration into our product offerings; the effect of evolving domestic and foreign government regulations; regulatory developments and regulatory investigations involving us or affecting our industry; our ability to successfully introduce new services and product features, including related to AI and Agentforce; our ability to execute our business plans; our ability to meet our long-term revenue target and profitable growth framework; the pace of change and innovation in enterprise cloud computing services; our ability to maintain and enhance our brands; and expectations regarding closing contemplated acquisitions and contributions from acquired companies. 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. This presentation includes both GAAP and non-GAAP financial measures. An explanation of non-GAAP financial measures, why we believe these measures can be helpful, and a reconciliation of non-GAAP financial measures to the most comparable GAAP measures, when applicable, are included in the Appendix to this presentation and in our most recent earnings press release, which are available at investor.salesforce.com/financials/. Safe Harbor & Non-GAAP Financial Measures 3
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Q2 FY27 Highlights Marc Benioff Chair and CEO 4
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5 22.5B8.0B
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Q2 FY27 Highlights & Guidance Robin Washington President and Chief Operating and Financial Officer 8
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9 Q2 FY27 Agentforce & Data 360 ARR reached nearly $3.9B, with Triple Digit Y/Y Growth Informatica Cloud ARR includes Cloud business only, excluding On-Prem and ProServe ARR. In Q3 FY26, the Company renamed its service offerings to reference Agentforce. There was no change to the allocation of Annual Recurring Revenue. $3.9B ARR Agentforce & Data 360 ARR Incl. Informatica Cloud over 210% Y/Y Gen AI & Agentforce Headless 360$2.4B Data 36O ARR (Up over 200% Y/Y) Includes $1.1B Informatica Cloud ARR $1.5B Agentforce ARR (Up over 240% Y/Y) Going forward, moving to milestone based reporting. Agentforce ARR includes Headless 360 and Slackbot effective Q2 FY27.
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GAAP Operating Margin Non-GAAP Operating Margin Operating Cash Flow Free Cash Flow Q2 FY27 Financial Results Capital Return Top Line Profit & Cash $11.3B +11% Y/Y, +11% Y/Y CC $9M Y/Y FX Impact +14% Y/Y, +14% Y/Y CC $0 Y/Y FX Impact Revenue cRPO $33.5B Subscription & Support Revenue Disaggregation 20.5% 34.1% $1.1B $0.4B $364M Dividends Executed against $25B ASR $1.3B 11Revenue includes $456M Informatica contribution. Subscription & Support Revenue includes $440M Informatica contribution. Data 360, Headless Platform, and Other +11% Y/Y RPO $66.3B $3.6B + 20%Y/Y, +20% Y/Y CC Total Subscription & Support Revenue $10.8B +12% Y/Y, +11% Y/Y CC $8M Y/Y FX Impact Agentforce Apps $7.2B +8% Y/Y, +8% Y/Y CC
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Current Guidance Prior Guidance Revenue $46.1B - $46.4B 11% - 12% Y/Y Approximately 11% Y/Y CC, $200M Y/Y FX Informatica Contribution: Slightly Above 3pts $45.9B - $46.2B 11% Y/Y Approximately 10% - 11% Y/Y CC, $300M Y/Y FX Informatica Contribution: Approximately 3pts Subscription & Support Revenue Growth Slightly above 12% Y/Y Slightly under 12% Y/Y CC Slightly under 12% Y/Y Approximately 11% Y/Y CC GAAP Operating Margin 20.1% 20.6% Non-GAAP Operating Margin 34.3% 34.3% GAAP Diluted EPS $10.21 - $10.25 $7.93 - $7.99 Non-GAAP Diluted EPS $16.67 - $16.71 $14.06 - $14.12 Operating Cash Flow Growth Approximately 4% - 5% Y/Y Approximately 4% - 5% Y/Y Free Cash Flow Growth Approximately 4% - 5% Y/Y Approximately 4% - 5% Y/Y Capital Expenditures Approximately 1.5% of revenue Approximately 1.5% of revenue Full-Year FY27 Guidance Summary Includes contribution from Contentful and Fin, expected to close in the coming weeks 12Current Guidance includes the anticipated contribution of Contentful and Fin, which we expect to each close in the coming weeks, and is conditional upon the closing of these transactions. ▲ ▼ ▲ ▲ ▲ HOLD HOLD HOLD HOLD
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Current Guidance Revenue $11.42B - $11.5B 11% - 12% Y/Y 11% - 12% Y/Y CC, $0M Y/Y FX Informatica Contribution: Slightly Above 4pts GAAP Diluted EPS $1.81 - $1.83 Non-GAAP Diluted EPS $3.42 - $3.44 cRPO Growth Approximately 14% Y/Y Approximately 14% Y/Y CC, $100M Y/Y FX Q3 FY27 Guidance Summary Includes contribution from Contentful and Fin, expected to close in the coming weeks 13Current Guidance includes the anticipated contribution of Contentful and Fin, which we expect to each close in the coming weeks, and is conditional upon the closing of these transactions.
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Thank you
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Appendix 16
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Revenue Growth Trends in Constant Currency FY26 FY27 Subscription & Support Revenue Q1’ 26 Q2’ 26 Q3’ 26 Q4’ 26 FY' 26 Q1’ 27 Q2’ 27 Agentforce Apps 7% 7% 7% 6% 7% 7% 8% Data 360, Headless Platform, and Other 13% 14% 13% 21% 15% 23% 20% Total Subscription & Support Revenue 9% 9% 9% 11% 10% 12% 11% Total Revenue - Select Acquisitions Informatica Total Revenue ($M)2 — — — $399 $399 $444 $456 19 1Constant currency growth rates exclude the impacts of hedging gains. 2Informatica Total Revenue includes professional services revenue and subscription and support revenue. Q4 FY26 and FY26 results for Informatica represent a stub period reflecting revenue from the date of acquisition through the end of the fiscal year. Our speed of innovation is driving Agentforce Apps growth Q2' 27 revenue attrition approximately 8%, in line with recent trends
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Revenue Growth Trends in Constant Currency Prior Disaggregated Revenue Structure FY26 FY27 Subscription & Support Revenue Q1’ 26 Q2’ 26 Q3’ 26 Q4’ 26 FY' 26 Q1’ 27 Q2’ 27 Agentforce Sales 7% 8% 8% 8% 8% 10% 9% Agentforce Service 7% 8% 8% 7% 8% 5% 5% Agentforce 360 Platform, Slack and Other 14% 16% 19% 37% 22% 43% 43% Agentforce Marketing and Agentforce Commerce 4% 3% 1% (1)% 2% (2)% (1)% Agentforce Integration and Agentforce Analytics 10% 12% 6% 3% 7% 1% (6)% Total Subscription & Support Revenue 9% 9% 9% 11% 10% 12% 11% 20 To support transparency during the transition to our new disaggregated revenue structure, we will provide constant currency growth under the prior structure each quarter of FY27 and report solely under the new structure beginning in FY28 Flex Credits and Data 360 revenue are prospectively included in Agentforce 360 Platform, Slack and Other effective with deals closed in FY26. 1Constant currency growth rates exclude the impacts of hedging gains. Including Agentforce (reported in Agentforce 360 Platform, Slack and Other for the periods presented) would have added 2pts to Service Q2'27 revenue growth, offset by a reduction to Agentforce 360, Platform, Slack and Other.
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Q2 FY27 Revenue Growth by Region in Constant Currency $1.2B 12% APAC$7.4B 10% Americas $2.8B 13% EMEA 21 Q1’ 26 Q2’ 26 Q3’ 26 Q4’ 26 FY'26 Q1’ 27 Q2’ 27 Americas 7% 9% 8% 9% 8% 11% 10% EMEA 9% 7% 7% 13% 9% 12% 13% APAC 11% 11% 11% 13% 12% 12% 12% 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. Revenue dollar figures are presented in nominal currency and growth rates are presented in constant currency. Constant currency growth rates exclude the impacts of hedging gains. Q2 regional NNAOV growth anchored by strength in North America, Japan, and the UK
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Q2 FY27 Key Balance Sheet and Cash Flow Metrics Growth Rate Trends Q1’ 26 Q2’ 26 Q3’ 26 Q4’ 26 Q1’ 27 Q2’ 27 Total RPO 13% 12% 12% 14% 11% 11% cRPO 12% 11% 11% 16% 14% 14% cRPO (in Constant Currency) 11% 10% 11% 13% 13% 14% cRPO FX $M (Headwind) / Tailwind $300M $300M $200M $800M $100M $0 Operating Cash Flow 4% (17)% 17% 38% 3% 71% Free Cash Flow 4% (20)% 22% 39% 4% 81% 22 Strong Q2 results across RPO, cRPO, and cash flow, with cRPO CC growth up 1pt Q/Q Notes: • RPO growth rate change from Q4'26 to Q1'27 was primarily driven by FX. • cRPO to revenue relationship may change as we evolve our business model to incorporate more consumption revenue.
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Returned $27.9B Capital Q2 FY27 YTD (15)% Y/Y Q2 FY27 Diluted Share Count Down (141M) Y/Y Continued Focus on Reducing Share Count $59.3B Cumulative Repurchases Since Inception, Including $25B ASR $3.9B Cumulative Quarterly Dividend Payments Since Inception $2.6B $4.2B $4.4B $27.5B $0.4B Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 ⬤ Dividends ⬤ Share RepurchasesCapital Return 23 Committed to robust capital return, $63.1B returned since inception including $25B ASR in Q1
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Q2 & Full Year FY27 Non-GAAP Expense Profile Operating Margin GAAP 22.8% 21.3% 16.7% 21.1% 20.5% Non-GAAP 34.3% 35.5% 34.2% 34.8% 34.1% FY27 Guidance GAAP Operating Margin Stable Y/Y Includes impact of Contentful and Fin FY27 Guidance 20bps Non-GAAP Operating Margin Expansion Y/Y ⬤ Cost of Revenues ⬤ Research & Development ⬤ Sales & Marketing ⬤ General & Administrative Non-GAAP % of Revenue 24 66% 65% 66% 65% 66% 6% 6% 6% 5% 5% 29% 29% 29% 28% 29% 12% 11% 12% 12% 12% 19% 19% 19% 20% 20% Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Operating as a lean, agentic enterprise, investing in growth, while driving efficiency and AI productivity Current Guidance includes the anticipated contribution of Contentful and Fin, which we expect to each close in the coming weeks, and is conditional upon the closing of these transactions.
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Non-GAAP Financial Measures This presentation includes information about non-GAAP diluted earnings per share, non-GAAP income from operations, non-GAAP expenses, non-GAAP operating margin, free cash flow and free cash flow growth, constant currency revenue and revenue growth rates, 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 related to restructuring initiatives and acquisition-related costs. Non-GAAP diluted earnings per share excludes, to the extent applicable, the impact of the following items: stock-based compensation expense, amortization of purchased intangibles, charges related to restructuring initiatives and acquisition-related costs 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. The Company defines the non-GAAP measure free cash flow as GAAP net cash provided by operating activities, less capital expenditures. Trailing twelve months free cash flow is calculated as GAAP net cash provided by operating activities for the aggregate four preceding fiscal quarters, less capital expenditures over that same period. Constant currency information is provided as a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations and the impact of hedging gains (losses). To present constant currency revenue, 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 for growth rate calculations presented, rather than the actual exchange rates in effect during that period. To present current remaining performance obligation on a constant currency basis, we convert the current remaining performance obligation balances in local currencies in previous comparable periods using the United States dollar currency exchange rate as of the most recent balance sheet date. 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, generative AI products and features, and Headless 360, that were executed at the end of the reporting period. The Company defines Informatica Cloud ARR as the annualized recurring value of active Informatica Cloud subscription agreements that were executed at the end of the reporting period. From time to time, we may update this metric to incorporate new products, feature offerings, or acquired technologies that meet its definition. Beginning in Q2 FY27, Agentforce ARR includes our latest AI offerings Slackbot and Headless 360. 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. 25
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GAAP to Non-GAAP Financial Reconciliation (in millions) Three Months Ended July 31, Full Year FY27 GuidanceNon-GAAP income from operations 2025 2026 Non-GAAP operating margin GAAP income from operations $ 2,332 $ 2,331 GAAP operating margin2 20.1 % Plus: Plus: Amortization of purchased intangibles 380 522 Amortization of purchased intangibles4 4.4 % Stock-based compensation expense5 793 904 Stock-based compensation expense4,5 9.0 % Restructuring and acquisition-related costs 4 115 Restructuring and acquisition-related costs4,5 0.8 % Non-GAAP income from operations1 $ 3,509 $ 3,872 Non-GAAP operating margin2 34.3 % Revenue 10,236 11,345 Non-GAAP operating margin2 34.3 % 34.1 % (in millions) Three Months Ended July 31, Computations of free cash flow, a non-GAAP measure 2025 2026 GAAP net cash provided by operating activities $ 740 $ 1,269 (Capital expenditures) (135) (171) Free cash flow3 $ 605 $ 1,098 Three Months Ended July 31, Full Year FY27 GuidanceNon-GAAP diluted earnings per share 2025 2026 Q3 FY27 Guidance GAAP diluted earnings per share $ 1.96 $ 4.29 $1.81 - $1.83 $10.21 - $10.25 Plus: Amortization of purchased intangibles 0.40 0.64 0.57 2.45 Stock-based compensation expense5 0.82 1.10 1.29 4.96 Restructuring and acquisition-related costs 0.00 0.14 0.12 0.42 (Income tax effects and adjustments) (0.27) (0.27) (0.37) (1.37) Non-GAAP diluted earnings per share6 $ 2.91 $ 5.90 $3.42 - $3.44 $16.67 - $16.71 Shares used in computing non-GAAP diluted earnings per share (millions)7 962 821 827 838 1Non-GAAP income from operations is used to calculate non-GAAP operating margin. It excludes the impact of the amortization of purchased intangibles, stock-based compensation expense and charges related to the Company's restructuring initiatives and acquisition-related costs. 2GAAP 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. 3Free cash flow ("FCF") is defined as GAAP net cash provided by operating activities, less capital expenditures. Trailing twelve months ("TTM") free cash flow is calculated as GAAP net cash provided by operating activities for the aggregate four preceding fiscal quarters, less capital expenditures over that same period. 4The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY27. 5The 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. 6GAAP diluted earning per share ("EPS") is calculated by dividing GAAP net income by number of diluted shares. Non-GAAP diluted EPS is calculated by dividing non-GAAP net income by number of diluted shares. It excludes the impact of stock-based compensation expense, amortization of purchased intangibles, charges related to the restructuring initiatives and acquisition-related costs and income tax adjustments. 7The Company's shares used in computing GAAP net income per share guidance and non-GAAP net income per share guidance reflect the reduction to share count from the 103 million shares initially delivered under the ASR, but excludes any impact to share count from the final ASR settlement or potential Q3 - Q4 FY27 repurchase activity under our share repurchase program. 26 (in millions) Trailing Twelve Months Ended Three Months Ended Free Cash Flow July 31, 2026 October 31, 2025 January 31, 2026 April 30, 2026 July 31, 2026 GAAP net cash provided by operating activities $ 15,750 $ 2,316 $ 5,464 $ 6,701 $ 1,269 (Capital expenditures) (596) (139) (141) (145) (171) Free cash flow3 $ 15,154 $ 2,177 $ 5,323 $ 6,556 $ 1,098
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GAAP to Non-GAAP Financial Reconciliation (in millions) Period Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Revenue 10,236 10,259 11,201 11,133 11,345 GAAP Cost of Revenues 2,242 2,255 2,508 2,570 2,649 Less: Amortization of purchased intangibles 150 156 224 244 234 Stock-based compensation expense1 126 129 147 138 147 Acquisition-related costs — — 2 1 — Non-GAAP Cost of Revenues 1,966 1,970 2,135 2,187 2,268 Non-GAAP Cost of Revenues as a % of Revenue2 19 % 19 % 19 % 20 % 20 % GAAP Sales and Marketing Expense 3,443 3,456 4,017 3,769 3,859 Less: Amortization of purchased intangibles 230 230 302 317 288 Stock-based compensation expense1 293 296 413 320 345 Acquisition-related costs — — 7 3 1 Non-GAAP Sales and Marketing Expense 2,920 2,930 3,295 3,129 3,225 Non-GAAP Sales and Marketing Expense as a % of Revenue2 29 % 29 % 29 % 28 % 29 % GAAP Research and Development Expense 1,481 1,433 1,619 1,627 1,687 Less: Stock-based compensation expense1 280 271 336 310 301 Acquisition-related costs — — 1 2 3 Non-GAAP Research and Development Expense 1,201 1,162 1,282 1,315 1,383 Non-GAAP Research and Development Expense as a % of Revenue2 12 % 11 % 12 % 12 % 12 % GAAP General and Administrative Expense 734 667 902 740 725 Less: Stock-based compensation expense1 94 109 187 102 111 Acquisition-related costs — — 62 10 17 Non-GAAP General and Administrative Expense 640 558 653 628 597 Non-GAAP General and Administrative Expense as a % of Revenue2 6 % 6 % 6 % 5 % 5 % GAAP Operating Margin % 22.8 % 21.3 % 16.7 % 21.1 % 20.5 % Plus: Amortization of purchased intangibles 3.7 % 3.8 % 4.7 % 5.0 % 4.6 % Stock-based compensation expense1 7.8 % 7.9 % 9.6 % 7.8 % 8.0 % Acquisition-related costs — % 2.5 % 3.2 % 0.9 % 1.0 % Non-GAAP Operating Margin %2 34.3 % 35.5 % 34.2 % 34.8 % 34.1 % 1Stock-based compensation expense included in the GAAP to non-GAAP reconciliation tables above excludes those expenses related to the Company's restructuring initiatives, which are included in the restructuring and acquisition-related costs line. For the three months ended July 31, 2026 and April 30, 2026, $2 million and $10 million of such expense is excluded, respectively. No other quarters presented in this slide incurred material stock-based compensation expense related to restructuring. 2Non-GAAP expense categories as a % of revenue and Non-GAAP Operating Margin are calculated using GAAP revenue. 27