CRM

• Foreign currency exposure arises from multi-currency subscriptions, receivables, intercompany arrangements, and international infrastructure, with key currencies including the Euro, British Pound, Japanese Yen, Canadian Dollar, Australian Dollar, Indian Rupee, and Brazilian Real.
• The company uses short-term foreign currency forward contracts, including cash flow hedges on forecasted revenue, to reduce FX volatility; all contracts mature within twelve months and do not fully eliminate currency impact.
• FX fluctuations minimally impacted total revenue for the three months ended July 31, 2026 and minimally impacted current remaining performance obligation growth versus constant currency.
• As of July 31, 2026, cash, cash equivalents, and marketable securities totaled $11.4 billion, invested mainly in money market funds, time deposits, corporate notes and bonds, and government securities rated BBB or better.
• A 100 basis point immediate interest rate change at July 31, 2026 could change the fixed-income portfolio's market value by approximately $36 million, up from $31 million at January 31, 2026.
• The strategic investment portfolio had a carrying value of $11.3 billion across over 450 companies, including approximately $5.1 billion in Anthropic; a 10% decline in enterprise value of the five largest private holdings could reduce carrying value by about $641 million.

We evaluate all claims and lawsuits with respect to their potential merits, our potential defenses and counterclaims, settlement or litigation potential and the expected effect on us. Our technologies may be subject to an injunction if they are found to infringe the rights of a third party. In addition, many of our subscription agreements require us to indemnify our customers for third-party intellectual property infringement claims, which could increase the cost to us of an adverse ruling on such a claim. The outcome of any claims or litigation, regardless of the merits, is inherently uncertain. Any claims and other lawsuits, and the disposition of such claims and lawsuits, whether through settlement or litigation, could be time-consuming and expensive to resolve, divert our attention from executing our business plan, result in efforts to enjoin our activities, lead to attempts by third parties to seek similar claims and, in the case of intellectual property claims, require us to change our technology, change our business practices, pay monetary damages or enter into short- or long-term royalty or licensing agreements. For more information regarding legal proceedings see Note 12 “Legal Proceedings and Claims” to the condensed consolidated financial statements in Item 1 of Part I.

• Cybersecurity is the lead operational risk, with the company warning that AI is letting threat actors find zero-day vulnerabilities and automate multi-stage attacks faster than defenses can respond.
• AI-specific risks are newly emphasized across security, product reliability, competition, ethics, and regulation, including unpredictable agentic AI behavior and possible suspension of access to frontier models.
• The Informatica acquisition drove major new leverage: a $6.0 billion term loan in March 2026 and $25.0 billion of March 2026 Notes, partly used to fund an accelerated share repurchase.
• Consumption-based offerings such as Agentforce and Data 360 carry uncertain monetization and pricing, making renewals and revenue harder to forecast.
• Evolving privacy and AI laws, including the EU AI Act, GDPR, CCPA, and DORA, plus cross-border data transfer uncertainty, could raise compliance costs and restrict service delivery.
• The company faces ongoing litigation exposure, including the Dutch Privacy Collective GDPR case and securities class action and derivative claims inherited from the Slack acquisition.