Salesforce, Inc.

Good afternoon, everyone. My name is Layla and I will be your conference operator today. At this time, I would like to welcome you to the Salesforce fourth quarter and full year fiscal 2026 conference call. This conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speaker's prepared remarks, there will be a question and answer session. At this time, I would like to turn the call over to Mike Spencer, Executive Vice President of Finance and Investor Relations. Sir, you may begin.

Good afternoon and thanks for joining us today on our fiscal 2026 fourth quarter results conference call. We are trying out a new format today and as such have shortened our prepared remarks to ensure we have time for your questions. Our press release, SEC filings and a replay of today's call can be found on our website. Joining me on the call today are Mark Benioff, Chair and CEO, and Robin Washington, Chief Operating and Finance Officer. We also have Miguel Milano, President and Chief Revenue Officer, and Patrick Stokes, President and Chief Marketing Officer, joining us for the Q&A portion of the call. Some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions which could change. Should any of these risks materialize, or should our assumptions prove to be incorrect, Actual company results or outcomes could differ materially from these forward-looking statements. A description of these risks, uncertainties, and assumptions, and other factors that could affect our financial results or outcomes is included in our SEC filings, including our most recent report on Forms 10-K, 10-Q, and other SEC filings. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. As a reminder, our commentary today will include non-GAAP measures. Reconciliations between our GAAP and non-GAAP results and guidance can be found in our earnings materials and our press release. And with that, let me hand the call to Mark.

All right. Thanks so much, Mike. We're so thrilled to be here with everybody. And I'll tell you what, we're here in this beautiful San Francisco on the 60th floor of Salesforce Tower and it is a gorgeous day 70 degrees the AI capital of the world and we're coming here to you live Really excited about everything that's going on So let's start with the highlights from one of the absolute best years in our history and one of the best Performances in software ever and guiding one of the best performances in software ever we have delivered phenomenal results performance across revenue, across margin expansion, across cash flow, and CRPO and RPO. I mean, the numbers are really incredible. For the full year, we delivered 41.5 billion in revenue, up 10% year-over-year, 9% constant currency. We had 11.2 billion in revenue for the fourth quarter, up 12% year-over-year, 10% constant currency. CRPO rose to 35.1 billion, up 16% year-over-year, and 13% in constant currency. And we passed an incredible milestone with $72 billion in total RPO, which is up 14% year over year. Now, that is $72 billion in total RPO, up 14% year over year, in case you missed that point. I did read a tweet that RPO does not matter, but evidently we have it if it does matter. So total RPO, $72 billion. Last year, we laid out a path towards double-digit revenue growth by the second half of fiscal year 27, and we're hitting our marks. And based on our strong Q4 performance and the fast start with Informatica, we're updating our fiscal year 30 revenue target to $63 billion. That means we've only spent two years of the 40s. Kind of hard to believe. I have never seen performance like this. But this obviously is not a rational market. We all know this. So we're using our remarkable cash flows to take advantage. You know, this is not our first saspocalypse. We have been through many saspocalypses. You know, I remember the horrible saspocalypse of 2020 when not only the software industry was dying, but we were all dying. But we made it through that, and now everyone is back doing great. So we're so grateful to make it through that, and we're going to make it through this one as well. And it's just a great marketing opportunity and a great buying opportunity, and that's why we are doing this incredible repurchase authorization of $50 billion. In fiscal year 26, we returned more than $14 billion, or 99% of our free cash flow to shareholders. Thank you, Robin, for that. And today we're increasing our share repurchase authorization to $50 billion because these are some low prices. So Robin will share more about that in a moment. The biggest brands in the world are choosing Salesforce to lead their agentic transformation. Companies like Amazon, Ford, AT&T, Moderna, GM, Pfizer, so many. And these are big deals in Q4. Wins over a million. We're up 26% year over year. That's just so we know. In Q4, wins over a million. We're up 26% year over year. Congratulations, McGill. Wins over 10 million. We're up 33% year over year. For example, the U.S. Army. run by Army Secretary Dan Driscoll, who's doing an amazing job, has awarded us a 10-year indefinite delivery, indefinite quantity contract with a ceiling of $5.6 billion. Thank you, Dan. This level of financial performance is a clear signal, a clear signal, that companies across every industry and region are investing in Salesforce to become agentic enterprises, just like we've been talking about now for two years at Dreamforce that the agentic enterprise is a real idea, and we're going to talk about agent force, and I think it just became an $800 million business. We're going to talk about that. You've heard me talk about it at Dreamforce and on these calls, our vision of humans and agents working together. For years, companies bought apps. We all use apps. I've got apps right here on my phone. I've got apps on my computer. But now I'm using apps and agents. I use them at home. I use them in my company. We could be talking about that. That is a reality. We have 83,000 employees here at Salesforce Humans. And we have lots of agents running around as well. Miguel qualified 50,000 leads this week with agents. So we have apps and agents. We have humans and agents working together. We've been talking about that at Dreamforce as well. And this is just an incredible opportunity for Salesforce. Our market is bigger than ever because not only selling apps, we're selling apps and agents as So bringing humans, agents, apps, data together, not just to make people better at their jobs, but to redefine how work gets done. This is just an incredible, exciting moment in software. So we're seeing incredible demand for agent force. In its first 15 months, we closed 29,000 deals, up 50% year quarter over quarter. Customers and production have increased as well, nearly 50% in Q4. It can do more, have more power, more capability than ever. If you haven't seen the new AgentForce, you haven't seen AgentForce, the level of determinism, the voice capabilities, AgentForce Studio, AgentForce Builder. We are spending a huge amount of time on AgentForce. I just saw the new AgentForce demos from our team. It was incredible. We even have AgentForce running in Slack. We have AgentForce Builder running in Slack. We have amazing things happening. And our AgentForce data, 360 ARR, including Informatica, now exceeds $2.9 billion. I heard ARR doesn't matter anymore, but in case it does, we have $2.9 billion, up 200% year over year. More than 75% of our top 100 wins in Q4 included both AgentForce and Data360. In a bit, we're going to hear from three amazing customers. Wyndham, one of my very favorite customers in the world, the world's largest hotel chain. Shark Ninja, I just got one of their great new products. I'm sure you know about. They've got the best slushing machine. But one of the most innovative consumer product companies in the world, Ancestor. an incredible community of B2B software founders, executives, investors, and I think you all know that I love Jason, but I've never been more excited about our business here at Salesforce. No one else is delivering this level of capability at this scale to this many customers, and we are taking the power. of the agentic enterprise of these apps and Salesforce, and we're giving them the security, reliability, availability, scalability that you need to make them successful in business like ours, but in all businesses, in small and medium businesses, in general sized businesses, in very large enterprises, in the government and in ISVs as well. So this is a category that just did not really exist a year ago, you know, I will just say that look at IT service management. You know, we just launched Salesforce IT service in October, you know, Salesforce ITSM. And in just a few months, Miguel has won over 180 customers. Amazing, Miguel. But I especially loved five customers who got to leave the purgatory of ServiceNow like Sunrun, Cornerstone, CoolSys, and there's others too that we're not allowed to mention, but I might mention them anyway, who are leaving in service now, now for the new Salesforce IT service product, which is about apps and agents helping you manage all your ITSM. But don't just think it's just that. We built an amazing new life sciences product this year. AgentForce for life sciences. And since we launched, so many of the global pharma companies, and I've met with so many of the CEOs myself, they're leaving Viva, the purgatory of Viva, including AstraZeneca, Novartis, Takeda, and of course, Albert at Pfizer. They're all saying that they are going to Salesforce Life Sciences, which is a product that has apps and agents. And this is amazing. They are the most regulated businesses in the world, and they're choosing Salesforce. And you know, over the years, I've met with untold numbers of customers, call it thousands, call it more than that. They used to tell me that maybe, okay, I want to roll my own AI. I'm going to build my own model. I'm going to build my own agent. I said, tell me about that. Let me know how that goes. Show me exactly what you're doing. Or you can just turn it on in the Salesforce product you already have. You have Sales Cloud, turn on the agents. You have Service Cloud, turn on the agents. You have Marketing Cloud, turn on the agents. You have Slack, turn on Slack bot. And that idea that every app now has the capability to have agents. So customers tell me that they want to basically kind of get to that next level. And the way to do that is by including this context, the ability for the AI, the data to know you. No better example of that than Slack bot. Immediately as you turn it on, you're a Slack customer. It looks at all your Slack. It looks at your DMs. It looks through Salesforce. It looks through Google. It looks even at Microsoft Teams, as hard as that is for some agents to go and do, but we've told them how to do it. And then it says, I understand your business, and I can give you help, advice, support. And, in fact, a recent survey of 100 CIOs found that the number of companies planning to use a platform like this, this idea of apps and agents, has now doubled just in the last 18 months because... because of this, they realize this is more than just turning on MaltBot on your Mac Mini, okay, which by the way, I have a Mac and the setup is great, open claw, I love it. But for companies who want to have the reliability, availability, security, okay, The sharing models, the key parts of that to really make sure that the business is safe and secure while you're running all these skilled agents. Well, let's just know that that is what Salesforce is doing. And that's why Salesforce has become one of these incredible companies, because our platform provides these amazing. four layers that you see right here, that everyone needs to convert raw intelligence into real work. Everything they need to become an agentic enterprise. Just look at this. Look at what we've built. Look at what we have built. And thank you to our team. They have done a phenomenal job. Srini can't be here because he's in India. He was at the India AI Summit this week. He could not make it back here in time. Look at what our engineering team has built. And thank you to them. Look at where it starts. First of all, yes, we can use all those large language models. We love them all. We love all of our children equally. And down below here, whether it's Anthropic or OpenAI or Mistral or Llama, all of them. And there's more coming. They're amazing. World models are coming. They're amazing. They're all down below here, and we're using them. And then, of course, we bring them into Data360. And that lets you harmonize your data, integrate your data, and federate. That means connecting to other data sources throughout your company and grab it. Other data repositories, you might be using Snowflake or Databricks. You might be using BigQuery or you know, anything, even IBM mainframes, and you can bring it into Data360, activate your data, and then it comes up into your apps. So if you're using the service app and you want to have an experience like help.salesforce.com for your company, now the service app has that agentic capability, the data's coming up, and it comes up to the next level to agent force, and you can build your agents, train your agents, put the guardrails in your agents, give them voice, they can talk now, they're talking, and then all of a sudden, You can even manage and orchestrate and collaborate from Slack. So this is our architecture. And all of this is unified, integrated. And that idea that we can deliver this unified platform to our customers to help them deliver humans and agents working together. So you can see right here, AgentForce has the tooling to build, to manage, to orchestrate the agents, to make them talk, to give them determinism. You know, to give them the capabilities that they want. And then we have the engagement layer to deliver agentic enterprises where work happens in Slack across our apps. If you haven't seen Slackbot, you know, I talk to a lot of customers like, I don't see Slackbot. Why are you? I have the free edition. I'm like, maybe you should pay us and get the enterprise edition. Boom. That's when all the Slackbot turns on and you can. Go through your whole company, run your company. I had, you know, one of our customers over last night, Anil Bushri at Workday. I'm like, have you seen Slackbot? And he's like, no, I haven't seen it yet. I'm like, you're the biggest Slack customer we have. I'm like, I had to sit there and say, look at this. And I'm like, said to Slackbot, I'm having drinks with Anil. And I just am trying to like... Give him a demo of Slackbot. What should I say to him? What is the strategy between Salesforce and Workday? And then boom, boom, boom. It just went through the whole thing, showed him every deal. He couldn't believe everything that was happening between our two companies. He had to get updated because he's the new CEO of Workday. And it was amazing. That was my real experience. You know, together, all of this is the complete operating system for the agentic enterprise. Yes, I'm using it myself. You know, and we're using it. We're customer zero. And that's crucial because, look, we already know now our customers aren't going to deploy just one agent. There's going to be many agents, many capabilities, the ability to automate many different types of work. And they're going to deploy hundreds or thousands. Many are going to be from us. Others could be from other amazing companies, you know, like one that I just mentioned, Workday. I love them. But these agents can't work in isolation. You know, like ET, each one of them needs to phone home. Okay, so that home is Salesforce, and they are calling us through the MCP server or maybe even just through one of our core platforms. And the more agents that our company deploys, us or anyone else, the more essential our platform becomes. This is my personal testimonial. I'm giving you my personal testimonial of how I run Salesforce. You can come here. I will show you how I run a business with apps and agents together. And it's why nearly 90%, 90% of Forbes' top 50 AI companies, Forbes' top 50 AI companies use Salesforce and Slack. And if there is a SaaSpocalypse, I think it might be being eaten by the Sasquatch because There are a lot of companies using a lot of SaaS because SaaS just got a lot better with agents as a service. Now, I won't exactly tell you what that says, but let's just say there's SaaS and there's also agents as a service. Now, I want to tell you how we're measuring the value our platform delivers to customers. Today, we are one of the largest consumers of tokens in the world to date. now over 19 trillion tokens. So we continue to show you that because we want you to see that we're actually doing what we say. I know that there's been some enterprise software companies who say they're doing agents or they're doing AI, but then they're not showing up in the token rankings from the language model companies. So here's 19 trillion. Okay. But we really want to take this to another level. And another level is a token on its own doesn't know your customers, your pipeline, your org chart, but Salesforce does. And the value isn't in the token. The value is in what our platform does with it, the work. That's why today we're introducing an additional metric, the agentic work unit created by our very own Patrick Stokes sitting here at the table, the AWU, not to be confused with our customer AWS, And AWU represents one unit of AI work, agentic work unit. We're rolling this out to see how you like it actually here in earnings. It's a record updated, workflow triggered, decision made. MCP called. And to date, AI agents on the Salesforce platform delivered 2.4 billion agentic work units. That is where AI isn't just thinking or calling things. It's getting work done, work done, transactions. And in Q4 alone, we delivered about 771 million of them. We're still trying to exactly figure out Exactly what these numbers mean for us. But what it means for me is that we are doing what we say. That is, we are explaining that humans and agents are working together. We are showing you a business at scale, running them. We are showing them how we are making our business better. Our service is so much better this year. Because we're using our new service cloud with our omni-channel supervisor deployed with agent force. Our sales, Miguel just hit record sales numbers. You can see them. We've never sold or had so much ACV in our history in the fourth quarter because not only does he have 15,000 account executives, but he has all these agents who are out there doing this amazing work. So that is so exciting. This is raw intelligence converted into real work. It's driving efficiency and growth. Okay, now let me tell you about one of the biggest drivers of these work units, Slackbot. A lot of you use Slack. I use Slack every day. It's the ultimate employee agent. And many of you know that X, the social media platform, hosts about 500 million messages a day, right? Elon Musk did an amazing job on X, incredible what he has done. But did you know that Slack hosts about a billion messages a day. So while X, amazing X, I use it myself, I just tweeted something, 500 million messages a day, well, Slack is hosting a billion messages a day. And remember, every one of them is about getting work done. That's why we bought it. Remember, Slack's ticker symbol was work. Slackbot can access all of those messages as well as your files, your calendar, your Salesforce, your Google, your Microsoft Teams, your this, your that. Slackbot goes around, pulls it all together, and then it knows your business. So then it's able to orchestrate with other agents. It has an incredible partner marketplace, really the number one AI ecosystem in the world. and has more than 350 AI apps and agents already. There is no other AI ecosystem like it. One of those partners is the great Anthropic. We love Anthropic. We love Dario, Daniela. I tweeted about what they did yesterday. Incredible demo. Just yesterday, Dario demonstrated how he is doing something amazing with Salesforce and the enterprise. Every single one of their demos, whether it was for HR, engineering, investment banking, started and ending in Slack. Pretty awesome. And so... It's about, you know, agents and apps, humans and agents. It's all working together. You can see it in his demos. You can see it in our demos. By the way, Anthropic runs its whole global operation on Salesforce and Slack. I think actually every AI company does. Yeah, I think they do. So maybe you saw they're hiring a Salesforce admin, Dario. Let us know if you need new names. But I think it's just a point we're making that Salesforce is doing great with these AI companies. We're so thrilled of our relationship with Dario. And I think we just put another $100 million into the new round. We're up about $330 million into Anthropic Invested. It's almost about 1% of Anthropic. And believe me, I wish we had invested a lot more, John. I don't know why we didn't do more. Okay. With that, It's time we're going to hear from some of our most inspiring customers becoming agentech enterprises. We have the great Mark. Mark, I see you. Mark is there from Shark Ninja. Hey, Mark.