Q2 2026 Salesforce Inc Earnings Call

Speaker #1: Good afternoon, everyone. My name is Leyla, and I will be your conference operator today. At this time, I would like to welcome you to the Salesforce second quarter fiscal 2026 conference call.

Miguel Molano: 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 second quarter 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 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 Strategy and Investor Relations. Sir, you may begin.

Speaker #1: This conference is being recorded, and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Speaker #1: At this time, I would like to turn the call over to Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations. Sir, you may begin.

Speaker #2: Good afternoon, and thanks for joining us today on our fiscal 2026 second-quarter results conference call. Our press release, SEC filings, and a replay of today's call can be found on our website.

Mike Spencer: Good afternoon, and thanks for joining us today on our fiscal 2026 second quarter results conference call. Our press release, SEC filings, and a replay of today's call can be found on our website. Joining me on the call today is Marc Benioff, Chair and CEO, and Robin Washington, Chief Operating and Finance Officer. We also have Srini Talapragada, President and Chief Engineering and Customer Success Officer, and Miguel Molano, President and Chief Revenue 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.

Speaker #2: Joining me on the call today is Marc Benioff, Chair and CEO, and Robin Washington, Chief Operating and Finance Officer. We also have Srini Telepragata, President and Chief Engineering and Customer Success Officer, and Miguel Molano, President and Chief Revenue Officer, joining us for the Q&A portion of the call.

Speaker #2: 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.

Speaker #2: A description of these risks, uncertainties, assumptions, and other factors that could affect our financial results or outcomes is included in our SEC filings, including our most recent reports on Forms 10-K, 10-Q, and other SEC filings.

Mike Spencer: A description of these risks, uncertainties, 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 press release. With that, let me hand the call to Marc.

Speaker #2: 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.

Speaker #2: Reconciliations between our GAAP and non-GAAP results and guidance can be found in our earnings materials and press release. And with that, let me hand the call to Marc.

Speaker #3: Alright, hey Mike, thank you so much. I'm really excited to get into the call. As you saw, we really had a great quarter to close out the first half of the year, with outstanding performance across all of our key metrics, including our revenue, our margin, our cash flow, our CRPO, and even our AI and Data Cloud numbers were all incredible.

Srini Talapragada: All right. Hey, Mike, thank you so much. I'm really excited to get into the call. As you saw, we really had a great quarter to close out the first half of the year with outstanding performance across all of our key metrics, including our revenue, our margin, our cash flow, our CRPO, and even our AI and Data Cloud numbers were all incredible. We outperformed on Q2 revenue with $10.25 billion, up 10% year over year, and 9% in constant currency. Miguel's sales team drove incredible momentum. Net new bookings from deals over $1 million grew 26% year over year. We closed deals with companies like Dell, Marriott, Eaton, U.S. Bank, Japan Post Bank, Lululemon, and the U.S. Army. Non-GAAP operating margin came in strong at 34.3%. We outperformed on CRPO with $29.4 billion, up 11% year over year.

Speaker #3: You know, we outperformed on Q2 revenue with 10 and a quarter billion, up 10%, and year over year, and 9% in constant currency. Miguel's sales team drove incredible momentum, net new bookings from deals over $1 million grew 20%, 6% year over year, and we closed deals with companies like Dell, Marriott, Eaton, US Bank, Japan Post, Bank, Lululemon, and the US Army.

Speaker #3: And non-GAAP operating margin came in strong at 34.3%. We outperformed on CRPO with $29.4 billion, up 11% year over year, and the AI and data product line is up 120% year over year.

Srini Talapragada: The AI and data product line is up 120% year over year. We're on track to close out fiscal 2026 as a record year, raising our guidance on the low end for revenue, raising on non-GAAP operating margin and cash flow. We expect to finish with nearly $15 billion in operating cash flow. That's just incredible and a huge raise from the previous quarter. Make no mistake, these results aren't just financial milestones. It's the growth that we are seeing, particularly with Agent Force and Data Cloud. It's proof, and you're about to get into this now, as I start to really give you our fundamental organizing principle for the company and what I believe the enterprise software industry is about to become because the agentic enterprise, the agentic enterprise, the real manifestation of what AI was meant to be, that agentic enterprise has arrived.

Speaker #3: We're on track to close out fiscal 2026 as our record year. We're raising our guidance on the low end for revenue, raising on non-GAAP operating margin and cash flow, and we expect to finish with nearly $15 billion in operating cash flow.

Speaker #3: That's just incredible, and a huge raise from the previous quarter. Make no mistake, these results aren't just financial milestones; it's the growth that we are seeing, particularly with our agent force and data cloud.

Speaker #3: And it's proof, and you're about to get into this now, as I start to really give you our fundamental organizing principle for the company and what I believe the enterprise software industry is about to become. Because the agent, agentic enterprise, the agentic enterprise, the real manifestation of what AI was meant to be.

Speaker #3: Well, that agentic enterprise has arrived. In the three quarters since we launched Agentforce, we have now won more than $6,000 in paid deals and more than $12,500 overall.

Srini Talapragada: In the three quarters since we launched Agent Force, we have now won more than 6,000 paid deals and more than $12,500 overall. 40% of our Agent Force new bookings this quarter came from existing customers extending their investment with Salesforce. It's demonstrating the value that they're getting and how the flywheel is really working. We've seen a 60% increase, quarter over quarter, in customers who've gone from pilot to production, and they're expanding use cases and scaling consumption. This is just the beginning of the most transformative time in our industry ever. I've never been more excited about anything in my entire career. We're about to get into it. I've spent weeks on the road this summer meeting with CEOs, CIOs, and frontline teams. One thing is extremely clear to me. Every single one of our customers is becoming an agentic enterprise. It's a huge vision for the future.

Speaker #3: And 40% of our Agentforce new bookings this quarter came from existing customers extending their investment with Salesforce. It's demonstrating the value that they're getting and how the flywheel is really working.

Speaker #3: We've seen a 60% increase quarter over quarter in customers who've gone from pilot to production, and they're expanding use cases and scaling consumption. And this is just the beginning of the most transformative time in our industry ever.

Speaker #3: I’ve never been more excited about anything in my entire career. We’re about to get into it. I’ve spent weeks on the road this summer meeting with CEOs, CIOs, and frontline teams, and one thing is extremely clear to me: every single one of our customers is becoming an agentic enterprise.

Speaker #3: It's a huge vision for the future. It's a huge vision for the future of business. And really, it's a huge vision for the future of Salesforce.

Srini Talapragada: It's a huge vision for the future of business. It's a huge vision for the future of Salesforce. This isn't just an upgrade. This isn't simply just automating some existing business process. These agentic enterprises, for Salesforce, it's certainly true, it's a complete transformation. For our customers, the agentic enterprise is a complete reinvention in many cases of who they are and what their potential is. It's a shift from traditional hierarchies to reshaping the entire company, from busy work to orchestrating workflows, from siloed teams to seamless collaboration, from clicking and routing to natural conversations. Hours are shrinking to seconds. Employees and customers are being augmented. Ultimately, it's about this. It's about humans and agents working together with every decision grounded in trusted data. This is, as I said, what AI was meant to be.

Speaker #3: But this isn't just an upgrade. This isn't simply just automating some existing business process. These agentic enterprises, well, for Salesforce, it's certainly true.

Speaker #3: It's a complete transformation. And for our customers, the agentic enterprise is a complete reinvention, in many cases, of who they are and what their potential is.

Speaker #3: It's a shift from traditional hierarchies to reshaping the entire company—from busy work to orchestrating workflows, from siloed teams to seamless collaboration, from clicking and routing to natural conversations.

Speaker #3: And hours are shrinking to seconds; employees and customers are being augmented. But ultimately, it's about this. It's about humans and agents working together, with every decision grounded in trusted data.

Speaker #3: This is, as I said, what AI was meant to be. And I just like to talk about what that agentic enterprise means for us at a very high level.

Srini Talapragada: I'd just like to talk about what that agentic enterprise means for us at a very high level, how we're going to define it, and then also talk about what some of our customers are doing and what we're doing as well. I think that across our portfolio, we are adding these native agentic capabilities into every single one of our products. In sales, every prospect is finally getting a callback. Agents qualify at scale. Humans close the deal. Let me just get into that for just a minute. Our Sales Cloud for years has been an app that thousands, well, millions of salespeople use to manage their sales every single day. Now, riding alongside every salesperson is an agentic salesperson. That agentic salesperson is calling every single person back.

Speaker #3: How we're going to define it. And then also like to talk about what some of our customers are doing and what we're doing as well.

Speaker #3: I mean, I think that across our portfolio, we are adding these native agentic capabilities into every single one of our products. In sales, every prospect is finally getting a callback.

Speaker #3: Agents qualify at scale; humans close the deal. I mean, let me just get into that for just a minute. Now, our Sales Cloud for years has been an app that thousands, or millions, of salespeople use.

Speaker #3: To manage their sales every single day. But now, riding alongside every salesperson is an agentic salesperson. And that agentic salesperson is calling every single person back.

Speaker #3: And how that relates to Salesforce, well, let me tell you, that, you know, maybe someone from 20 million to 100 million people who have contacted Salesforce in the last 26 years, they haven't been called back.

Srini Talapragada: How that relates to Salesforce, let me tell you that maybe somewhere between 20 and 100 million people who have contacted Salesforce in the last 26 years, they haven't been called back. It's just because we didn't have enough people. Now, with our new agentic sales, everybody is getting called back. It's a huge breakthrough and something that every company is going to benefit from. In service, we've been talking about that now for months. You can see our agents are handling millions of conversations while humans are delivering the empathy and expertise. It's a bigger story than that, where you know that we have delivered in the last nine months about 1.5 million conversations just for our own company on our help.salesforce.com. You also know that we continue to have thousands of humans who are also delivering their support answers. Guess what? The CSAT scores are about the same.

Speaker #3: It's just because we didn't have enough people. But now, with our new agentic sales, everybody is getting called back. It's a huge breakthrough and something that every company is going to benefit from.

Speaker #3: And in service, we've been talking about that now for months. You can see our agents are handling millions of conversations, while humans are delivering the empathy and expertise.

Speaker #3: Well, it's a bigger story than that, where you know that we have delivered in the last nine months about a million and a half conversations just for our own company on our help.salesforce.com.

Speaker #3: And you also know that we continue to have thousands of humans who are also delivering their support answers. Well, guess what? The CSAT scores are about the same.

Speaker #3: In field service, agents orchestrate scheduling and logistics so technicians can focus on solutions. I saw it myself at my home. I have this incredible device from Eaton, one of our large customers using our field service product.

Srini Talapragada: In field service, agents orchestrate scheduling and logistics, so technicians can focus on solutions. I saw it myself at my home. I have this incredible device from Eaton, one of our large customers using our field service product. It actually connects my Airstream trailer to my house. When the technician comes out to work on it, they're able to use the agentic capability to learn as much as possible about the product that I'm using and how to fix it and how to repair it while also managing the traditional system of record that's on the field service capability, managing all the field service and service operations through the field service capability. It's really pretty awesome.

Speaker #3: And it actually connects my Airstream trailer to my house. When the technician comes out to work on it, they're able to use the agentic capability to learn as much as possible about the product that I'm using and how to fix it and how to repair it.

Speaker #3: Well, also managing the traditional system of record that's on the field service capability. Managing all the field service and service operations through the field service capability.

Speaker #3: It's really pretty awesome. We've been showing now for a few months, starting at our Tableau conference, the new version of Tableau, where agents, service insights, and make recommendations instantly.

Srini Talapragada: We've been showing now for a few months, starting at our Tableau conference, the new version of Tableau, where agents surface insights and make recommendations instantly, and where agents and humans are working together to make smarter, faster decisions. One really cool thing when we look at our marketing product, and I'm sure you know, we do about 11 trillion emails a year to our customers. Those are all one-way conversations. Now we're demonstrating to our customers and about to release our new email platform that provides every one-way conversation into a two-way conversation. Agents are going to turn these one-way emails into two-way conversations. In commerce, it's the same thing. Agents are giving every seller superpowers and shoppers a personal assistant.

Speaker #3: And we're agents, and humans are working together to make smarter, faster decisions. One really cool thing when we look at our marketing product—and I'm sure you know—we send about 11 trillion emails a year to our customers.

Speaker #3: Well, those are all one-way conversations. But now we're demonstrating to our customers and are about to release our new email platform that transforms every one-way conversation into a two-way conversation.

Speaker #3: And agents are going to turn these one-way emails into two-way conversations. Commerce is the same thing. Agents are giving every seller superpowers, and shoppers are personal assistants.

Speaker #3: And if you've seen anyone from Salesforce recently, have them show you how we're using Slack as our interface to our own agentic enterprise, where we have dozens of agents, with people, apps, and LLMs, all in one conversational agentic workspace.

Srini Talapragada: If you've seen anyone from Salesforce recently, have them show you how we're using Slack as our interface to our own agentic enterprise, where we have dozens of agents with people and apps and LLMs all in one conversational agentic workspace. It's pretty cool. These agents are operating across apps, departments, silos, all running off of our Data Cloud, all running off of Agent Force. It's an incredible transformation of our product line, but really of our company, not just of our company, but of our customers too. This is a moment in business that we'll never forget, where every business is becoming an agentic enterprise. If we look out into our customers, we're already starting to see some incredible examples. Let me tell you, DirecTV saved billing reps nearly 300 hours of inquiry handling with Agent Force, and an employee AI agent executed 50,000 actions in a week.

Speaker #3: It's pretty cool. And these agents are operating across apps, departments, and silos, all running off of our data cloud, all running off of Agentforce. It's an incredible transformation of our product line, but really of our company.

Speaker #3: Not just of our company, but of our customers too. This is a moment in business that we will never forget, where every business is becoming an agentic enterprise.

Speaker #3: If we look out into our customers, we're already starting to see some incredible examples. Let me tell you, DirecTV saved billing reps nearly 300 hours of inquiry handling with Agentforce, and the employee AI agent executed 50,000 actions in a week.

Speaker #3: You know, I've been working with DirecTV for more than 20 years at Salesforce. And I'll tell you, when I wrote that line for the script, it just, you know, kind of occurred to me, wow, I think only about a year ago, we hadn't even started using the word "agent" or "agentic" or "Agentforce" at Salesforce.

Srini Talapragada: You know, I've been working with DirecTV for more than 20 years at Salesforce. I'll tell you, when I wrote that line for the script, it just kind of occurred to me, wow, I think only about a year ago, we hadn't even started using the word agent or agentic or Agent Force at Salesforce. Here we are talking about one of our largest and most important customers receiving this incredible benefit. Eaton, incredible company, projecting millions in annual savings by cutting call times. PenFed, who we talked about, meant many scripts that we've had already projecting millions in annual savings by using Agent Force and its loan underwriting. Our good friends at Under Armour and Kevin Plank, he more than doubled his case deflection rate and boosted customer satisfaction by double digits. They did it in under 60 days.

Speaker #3: And here we are talking about one of our largest and most important customers receiving this incredible benefit. Engine, an incredible company, is projecting millions in annual savings.

Speaker #3: By cutting call times, PennFed—who we talked about—meant many scripts that we've had already projecting millions in annual savings by using Agentforce and its loan underwriting.

Speaker #3: And our good friends at Under Armour and Kevin Plank, well, he more than doubled his case deflection rate and boosted customer satisfaction by double digits, and they did it in under 60 days.

Speaker #3: Kind of an incredible thing to see the speed of these deployments in enterprise software. Now, a lot of our employees are excited about Reddit because they've reduced average resolution times from 8.9 minutes to 1.4 minutes.

Srini Talapragada: Kind of an incredible thing to see the speed of these deployments in enterprise software. A lot of our employees are excited about Reddit because they've reduced average resolution times from 8.9 minutes to 1.4 minutes. Telepass, they've powered more than 275,000 agentic conversations over five months. The way they got it in the script is, we can't believe the speed and growth of these conversations just in the last few weeks. It's a conversation at the management level that they've become one of our fastest growing Agent Force customers. It's no wonder we're seeing so many companies build on their initial success. Our good friends in Copenhagen, Pandora, the amazing jewelry retailer, Alex, and an entire team scaled from one agent to three in a single quarter. I'm so glad they're coming to Dreamforce to show everyone exactly what they're doing.

Speaker #3: And Telepass, well, they've powered more than 275,000 agentic conversations over five months. And the way they got it in the script is, we can't believe the speed and growth of these conversations just in the last few weeks.

Speaker #3: It's a conversation at the management level that they've become one of our fastest-growing agent force customers. So it's no wonder we're seeing so many companies build on their initial success.

Speaker #3: Our good friends in Copenhagen, Pandora, the amazing jewelry retailer, Alex, is an entire team scaled from one agent to three in a single quarter.

Speaker #3: And I'm so glad they're coming to Dreamforce to show everyone exactly what they're doing. Our friends at Indeed have more than doubled the number of actions taken by their customer-facing agents.

Srini Talapragada: Our friends at Indeed have more than doubled the number of actions taken by their customer-facing agents and added another agent in Slack to drive internal productivity. Finally, I have to mention, because it's kind of an amazing story, you know, that Williams-Sonoma, we've only been live for a few weeks, started with Agent Force powering customer support for just one of their brands. I think you know they have like quite a few amazing brands like Pottery Barn and West Elm and others. Now it's rolled out along eight of their brands, as well as agents for other use cases, including a sous chef agent that is helping customers choose cookware and guiding them step by step through recipes. They are finding all incredible new ways to use the Agent Force platform, and they're doing it side by side across their entire Salesforce deployment.

Speaker #3: And added another agent in Slack to drive internal productivity. And finally, I have to mention, because it's kind of an amazing story, you know, that William Sonellman, we've only been live for a few weeks, started with Agentforce powering customer support for just one of their brands.

Speaker #3: I didn't think you knew they have quite a few amazing brands like Pottery Barn and West Elm, among others. Well, now it's rolled out across eight of their brands, as well as agents for other use cases, including a sous chef agent that is helping customers choose cookware and guiding them step by step through recipes. They are finding all incredible new ways to use the Agentforce platform.

Speaker #3: And they're doing it side by side across their entire Salesforce deployment. Now, these are all examples, including Salesforce, of an agentic enterprise in action, but it's really about how each company is transforming to become an agentic enterprise.

Srini Talapragada: These are all examples, including Salesforce, of an agentic enterprise in action. It's really about how each company is transforming to become an agentic enterprise. None of this is possible without Data Cloud. Data Cloud is the heart and soul of the success of these agents because it is providing the data and the metadata that you need and the context to get the accuracy. You know, we probably have the highest accurate agents in the industry. The way that we're achieving that is through our Data Cloud. It's this Data Cloud, as well as Tableau and MuleSoft and soon Informatica, all working together to really help our customers to clean and harmonize their data and provide it in a way that can be consumed by our Agent Force platform to provide this level of accuracy.

Speaker #3: And none of this is possible without Data Cloud. Data Cloud is the heart and soul of the success of these agents because it is providing the data and the metadata that you need, and the context to get the accuracy.

Speaker #3: You know, we probably have the highest accuracy agents in the industry, and the way that we're achieving that is through our data cloud. It's this data cloud, as well as Tableau, MuleSoft, and soon Informatica, all working together to really help our customers clean and harmonize their data and provide it in a way that can be consumed by our Agentforce platform to provide this level of accuracy.

Speaker #3: I think the data business is probably the most strategic and most important business for Salesforce going forward. And already, it's a $7 billion business.

Srini Talapragada: I think the data business is probably the most strategic and most important business for Salesforce going forward. Already, it's a $7 billion business, and Data Cloud is having a great year. It had a 140% year-over-year growth in customers and 326% growth in rows, accessed by zero copy integration. The usage numbers are really just off the charts. Over half of the Fortune 500 are already on Data Cloud. It's really just the very, very beginning. Now, FedEx, and you're going to see them at Dreamforce, their Chief Operating Officer, Richard Smith, is coming to be part of my keynote. Let me tell you that they've got unified data across all their platforms now with Data Cloud. The numbers that they're telling us that they're saving, I'm not going to take away Richard's punchline from the Dreamforce keynote.

Speaker #3: Data Cloud is having a great year. It had 140% year-over-year growth in customers and 326% growth in rows accessed by zero-copy integration.

Speaker #3: The usage numbers are really just off the charts. Over half of the Fortune 500 are already on the data cloud, but it's really just the very, very beginning.

Speaker #3: Now, FedEx, and you're going to see them at Dreamforce. Their Chief Operating Officer, Richard Smith, is coming to be part of my keynote. Well, let me tell you that they've got unified data across all their platforms now with Data Cloud, and the numbers that they're telling us that they're saving.

Speaker #3: Well, I'm not going to take away Richard's punchline from the Dreamforce keynote. It's like numbers. I've never heard in terms of what the amount that can be saved by technology.

Srini Talapragada: It's like numbers I've never heard in terms of the amount that can be saved by technology. Now, if a business customer isn't actively shipping, our own Marketing Cloud campaign is automatically triggered, and sales reps are alerted. It's all happening through our Data Cloud. This idea that FedEx has seen a double-digit increase in the % of customers who signed the contract and proceeded to start shipping has dramatically surprised them with what has been possible in such a short period of time. Honestly, it's also surprised us. I want to mention two areas where we're laser-focused and where the opportunity remains absolutely enormous. That is public sector, but also a new product category for us, which a lot of you know, ITSM or IT service. Let's talk just briefly about the government. You already know, our government is already our largest and most important customer.

Speaker #3: And now, if a business customer isn't actively shipping, our own Marketing Cloud campaign is automatically triggered, and sales reps are alerted. It's all happening through our Data Cloud.

Speaker #3: And this idea that FedEx is seeing a double-digit increase in the percentage of customers who've signed the contract and proceeded to start shipping—it has dramatically surprised them what has been possible in such a short period of time.

Speaker #3: And honestly, it's also surprised us. Now, I want to mention two areas where we're laser focused and where the opportunity remains absolutely enormous. And that is the public sector, but also a new product category for us, which a lot of you know, ITSM or IT service.

Speaker #3: Now, let's talk just briefly about the government. As you already know, our government is our largest and most important customer. It's a multi-billion dollar customer for Salesforce.

Srini Talapragada: It's a multi-billion dollar customer for Salesforce, and we've been driving efficiency and performance and taxpayer savings for more than a decade. Everybody knows that we run the VA, the Veterans Affairs, and the U.S. CoCard, and so many great agencies. We're starting to expand what we're doing even more and moving more into these DoD agencies as well. This quarter, we finalized an incredible agreement, another one with the U.S. Army, a fast pass that enables Army teams to quickly access and deploy Salesforce. It was a huge win for us. Already, we're helping the Army operate more efficiently, streamlining how they identify and elevate leaders, simplifying congressional reporting, powering Amazon-like marketplace for their tactical gear. I spoke with them yesterday. Of course, first I wanted to thank them for their service.

Speaker #3: And we've been driving efficiency and performance and taxpayer savings for more than a decade. Everybody knows that we run the VA, the Veterans Affairs, and the U.S. CoCard.

Speaker #3: And so many great agencies, but you know, we're starting to expand what we're doing even more and moving more into these DOD agencies as well.

Speaker #3: And this quarter, we finalized an incredible agreement—another one with the U.S. Army—a fast pass that enables Army teams to quickly access and deploy Salesforce.

Speaker #3: It was a huge win for us. Already, we're helping the Army operate more efficiently, streamlining how they identify and elevate leaders, simplifying congressional reporting, and powering an Amazon-like marketplace for their tactical gear.

Speaker #3: I spoke with them yesterday, and I just, of course, first wanted to thank them for their service. But second, I just wanted to say that it's incredible how they're looking at our technology to really transform their own operations.

Srini Talapragada: Second, I just wanted to say that it's incredible how they're looking at our technology to really transform their own operations. Now, with Agent Force for public sector and FedRAMP High certification, we're able to sell more to the government than ever before because we're bringing the power of the agentic enterprise directly to the government. The Army is already planning to launch a digital front door for its Human Resource Command, providing 24/7 powered service and support to all soldiers and personnel and millions of veterans. We have lots and lots of ideas of where we're going to be able to provide value for the U.S. Army. In the 21st century, agents just aren't optional. We know that. They're mission-critical. There's another area where that's absolutely true, and that's in the world of ITSM and IT service. It's an application area that we just haven't gone to before.

Speaker #3: And now, with Agentforce for the public sector and FedRAMP High certification, we're able to sell more to the government than ever before. Because we're bringing the power of the agentic enterprise directly to the government.

Speaker #3: The Army is already planning to launch a digital front door for its Human Resource Command, providing 24/7 powered service and support to all soldiers and personnel.

Speaker #3: And millions of veterans. We have lots of ideas about how we're going to be able to provide value for the U.S. Army.

Speaker #3: And in the 21st century, agents just aren't optional. We know that. They're mission critical. Well, there's another area where that's absolutely true, and that's in the world of ITSM and IT service.

Speaker #3: It's an application area that we just haven't gone to before. But I'm very excited that next month—and you're going to see this at Dreamforce as well—that we're launching our own agentic IT service platform.

Srini Talapragada: I'm very excited that next month, and you're going to see this at Dreamforce as well, we're launching our own agentic IT service platform. A lot of our existing customers have been asking for this. We're bringing a whole new level of capability. It's agent-first, and it's Slack-first. That is, right inside Slack, you're going to be using our agentic IT service capability. It's natively embedded where employees already work with zero learning curve. With agentic IT service, every request is becoming a conversation where agents work hand in hand with IT teams, proactively fixing their problems. It's going to be an incredible growth driver for the company. It's just really another example of how every platform is going to become agentic. I think we're really excited that we're getting there first. It's a very democratic platform.

Speaker #3: A lot of our existing customers have been asking for this. We're bringing a whole new level of capability. It's agent-first and it's Slack-first.

Speaker #3: That is right inside Slack. You're going to be using our agentic IT service capability. It's natively embedded, and our employees already work with zero learning curve.

Speaker #3: And with agentic IT service, well, every request is becoming a conversation where agents work hand in hand with IT teams, proactively fixing their problems.

Speaker #3: It's going to be an incredible joke driver for the company, but it's just really another example of how every platform is going to become agentic.

Speaker #3: And I think we're really excited that we're getting there first. It's a very democratic platform. A lot of the ITSM products have only served the highest end of the market, with maybe 1,000 customers here or 1,000 customers there.

Srini Talapragada: A lot of the ITSM products have only served the very highest end of the market with maybe 1,000 customers here or 1,000 customers there. The thing about Slack is that it's used by about a million customers worldwide. I think all of them are going to be able to benefit from this IT service platform. No one else is delivering this level of agentic capability and digital labor to scale. We know how to do this because our own first customer for this, it's us. We are customer zero. Over the last six months as customer zero, we've been doing all of these critical things that I've mentioned. Yes, we've done the 1.4 million customer support conversations with a 77% resolution rate. Yes, we have the sales agent that's qualifying prospects and generating pipeline. Yes, over 26 years, we just let too many millions of prospects go untouched.

Speaker #3: But you know, the thing about Slack is that it's used by about a million customers worldwide. I think all of them are going to be able to benefit from this IT service platform.

Speaker #3: No one else is delivering this level of agentic capability, and digital labor is scale. Now, we know how to do this because our own first customer for this, well, it's us.

Speaker #3: We are customer zero. And over the last six months, as customer zero, we've been doing all of these critical things that I've mentioned. Yes, yes, we've done the 1.4 million customer support conversations with the 77 percent, you know, resolution rate.

Speaker #3: Yes, we have the sales agent that's qualifying prospects and generating pipeline. And yes, over 26 years, we just let too many millions of prospects go untouched; mea culpa.

Srini Talapragada: Mea culpa, that was our fault. In the last seven weeks, this sales agent that we've just built, it's had conversations, conversations with tens of thousands of inbound leads, even setting up appointments with human SDRs and helping close deals. We have it running in customers as well. It's been incredible what the opportunity is. Look, we all know the agentic enterprise is here. We all know the agentic enterprise is the next wave of business. We all know that it's going to fundamentally reshape and rebuild and recast all of our companies. We know that what's going to happen is going to be something that we could never have expected, where humans and agents are going to be working side by side. Look, Salesforce is going to lead the way. There's no question about that. You know, we've built the software infrastructure for the agentic enterprise.

Speaker #3: That was our fault. But in the last seven weeks, this sales agent that we've just built has had conversations—conversations with tens of thousands of inbound leads, even setting up appointments.

Speaker #3: With human SDRs helping close deals, we have it running in customer environments as well. It's been incredible to see what the opportunity is. Look, we all know the agentic enterprise is here.

Speaker #3: We all know the agentic enterprise is the next wave of business. We all know that it's going to fundamentally reshape, rebuild, and recast all of our companies.

Speaker #3: We know that what's going to happen is going to be something that we could never have expected: where humans and agents are going to be working side by side.

Speaker #3: And look, Salesforce is going to lead the way. There's no question about that. You know, we've built the software infrastructure for the agentic enterprise.

Speaker #3: We have our metadata platform unifying our apps, our data, and agents into one powerful agentic operating system. We are rebuilding every single one of our products to be agentic.

Srini Talapragada: We have our metadata platform unifying our apps, our data, and agents into one powerful agentic operating system. We are rebuilding every single one of our products to be agentic. We're delivering almost every single one of those products at Dreamforce. At Dreamforce, you're going to see all of these products. You're going to see hundreds of customers that have deployed these products. You're going to hear directly from leaders like Dell, FedEx, Accenture, Smartsheet, Williams-Sonoma, Pfizer, OpenAI, Anthropic, and so many others about how they are becoming agentic enterprises and using our Salesforce agentic operating system. It's a funny thing. I don't think in the last earnings script, maybe if you go back a year ago, like, was I even talking about agentic or Agent Force or agents? Now, if you talk about the agentic enterprise, it's another layer above that.

Speaker #3: We're delivering almost every single one of those products at Dreamforce. At Dreamforce, you're going to see all of these products. You're going to see hundreds of customers that have deployed these products.

Speaker #3: And you're going to hear directly from leaders like Dell and FedEx and Accenture and Smartsheet and William Sonellman and Pfizer and OpenAI and Anthropic.

Speaker #3: And so many others about how they are becoming agentic enterprises and using our Salesforce agentic operating system. You know, it's a funny thing. I don't think in the last earnings script, I guess maybe if you go back a year ago, was I even talking about agentic, or agent force, or agents?

Speaker #3: And now, if we talk about the agentic enterprise, it's another layer above that. So, you're going to see that we are rapidly moving to what the next generation of technology is.

Srini Talapragada: You're going to see that we are rapidly moving to what the next generation of technology is. At Dreamforce, you're going to see incredible new capabilities, like I said, not just the IT service management product and all these new platforms. You're going to see Agent Force version four. It is going to be amazing, and you're not going to want to miss it. It is going to be October 14th through 16th in San Francisco. We can have an incredible show put together. We've even got a great concert for our children's hospital put together with Metallica and Benson Boone. We've got some amazing surprises for our keynotes. You're going to just see the future of technology. Let me just say this. At Salesforce, we've always believed that business is the greatest platform for change. We believe that when it was in the world of mobile and social.

Speaker #3: And at Dreamforce, you're going to see incredible new capabilities. Like I said, not just the ITSM product and all these new platforms. You're going to see Agent Force version 4.

Speaker #3: Well, it's going to be amazing, and you're not going to want to miss it. It's going to be October 14th through 16th in San Francisco.

Speaker #3: We have an incredible show put together. We've even got a great concert for our children's hospital featuring Metallica and Benson Boone. We've got some amazing surprises for our keynotes.

Speaker #3: But you're going to just see the future of technology. And let me just say this: at Salesforce, we've always believed that business is the greatest platform for change.

Speaker #3: You know, we believe that when it was in the world, the mobile and social, and we believe that before you know, there was AI.

Srini Talapragada: We believe that before there was AI. That was true in the cloud. The agentic enterprise for us, it's just not about efficiency or growth. It's about making a positive difference in the world. It's one of our core values at Salesforce, from helping companies serve their customers to driving sustainability to supporting communities. This transformation is grounded in our purpose and in our values. You're going to see all of that at Dreamforce as well. OK. I'm really excited to have all of you on the call and answer your questions. Now over to Robin.

Speaker #3: You know, that was true in the cloud. Well, you know, the agentic enterprise for us is just not about efficiency or growth. It's about making a positive difference in the world.

Speaker #3: It's one of our core values at Salesforce. From helping companies serve their customers to driving sustainability, to supporting communities, this transformation is grounded in our purpose and our values.

Speaker #3: And you're going to see all of that at Dreamforce as well. Okay, well, I'm really excited to have all of you on the call and answer your questions.

Speaker #3: And now over to Robin.

Speaker #4: Thanks, Marc. Good afternoon, everyone. As Marc shared, we closed the first half with strong momentum and are on track for a record year.

Robin Washington: Thanks, Marc. Good afternoon, everyone. As Marc shared, we closed the first half with strong momentum and are on track for a record year. We're delivering customer success, executing with discipline, and setting ourselves up to accelerate profitable growth. The agentic enterprise is here. We know this firsthand. As customer zero, our own sales, service, and Slack agents are augmenting teams across the company, transforming how we work and driving operational excellence. We're also helping our customers like Lennar, Vonage, Booking, and Pearson become agentic enterprises. They're trusting Salesforce to unify their data, apply real-time context, and securely deploy agents that automate routine work, streamline operations, and elevate every customer interaction. That is why Data Cloud and AI ARR continues to scale, reaching $1.2 billion in Q2, growing 120% year on year. Now, let me give a little bit more context on the strong results for the quarter.

Speaker #4: We're delivering customer success, executing with discipline, and setting ourselves up to accelerate profitable growth. The agentic enterprise is here, and we know this firsthand.

Speaker #4: As customer zero, our own sales, service, and Slack agents are augmenting teams across the company, transforming how we work and driving operational excellence. We're also helping our customers, like Lanar, Vonage, Booking, and Pearson, become agentic enterprises.

Speaker #4: They're trusting Salesforce to unify their data, apply real-time context, and securely deploy agents that automate routine work, streamline operations, and elevate every customer interaction.

Speaker #4: That is why data cloud and AI, ARR, continues to scale, reaching $1.2 billion in Q2, growing 120% year-on-year. Now, let me give a little bit more context on the strong results for the quarter.

Speaker #4: As Marc shared, revenue in the second quarter was $10.24 billion, up 10% year over year and nominally, and up 9% in constant currency. This was better than expected, driven primarily by one-time license revenue and professional services recognition, as well as strong execution.

Robin Washington: As Marc shared, revenue in the second quarter was $10.24 billion, up 10% year over year in nominal and 9% in constant currency. This was better than expected, driven primarily by one-time license revenue and professional services recognition, as well as strong execution. Subscription and support revenue grew slightly above 9% in constant currency. We delivered another quarter of profitable growth with Q2 non-GAAP operating margin up 60 basis points and GAAP operating margin up 370 basis points, marking a 10th consecutive quarter of operating margin expansion. Current remaining performance obligation, or CRPO, ended Q2 at $29.4 billion, up 11% year over year in nominal and 10% in constant currency. This was also better than expected, driven by sales execution, particularly in create and close, F&B, and big deals.

Speaker #4: Subscription and support revenue grew slightly above 9% in constant currency. We delivered another quarter of profitable growth, with Q2 non-GAAP operating margin up 60 basis points, and GAAP operating margin up 307 basis points.

Speaker #4: Marking a 10th consecutive quarter of operating margin expansion, current remaining performance obligations (or CRPO) ended Q2 at $29.4 billion, up 11% year over year and nominally, and 10% in constant currency.

Speaker #4: This was also better than expected, driven by sales execution, particularly in creating close SMB and big deals. As you know, we've built a resilient business with a diversified portfolio of products and a customer base across various geographies, segments, and industries.

Robin Washington: As you know, we've built a resilient business with a diversified portfolio of products and a customer base across various geographies, segments, and industries. From a geographic perspective, we saw strong new business growth in the U.S. and pockets of EMEA, particularly the Netherlands and Switzerland, while the U.K. and Japan were constrained. From a segment perspective, we continued to see strong performance in our small and mid-market business this past quarter. From an industry perspective, technology and comms and media performed well, while retail and consumer goods and public sector remain measured. These results reflect our disciplined focus on the three strategic priorities I laid out last quarter. I'll walk you through our progress on each. First, we focused on delivering customer success and accelerating data and AI adoption. Customers continue to trust Salesforce for their most mission-critical workflows.

Speaker #4: From a geographic perspective, we saw strong new business growth in the U.S. and pockets of EMEA, particularly the Netherlands and Switzerland. While the U.K. and Japan were constrained.

Speaker #4: From a segment perspective, we continue to see strong performance in our small and mid-market business this past quarter. From an industry perspective, technology and comms and media performed well.

Speaker #4: While retail and consumer goods and the public sector remain measured, these results reflect our disciplined focus on the three strategic priorities I laid out last quarter.

Speaker #4: I'll walk you through our progress on each. First, we focused on delivering customer success and accelerating data and AI adoption. Customers continue to trust Salesforce for their most mission-critical workflows.

Speaker #4: In fact, service and platform were in all of our top 10 wins. Additionally, 70% of our top 100 wins included five or more clouds.

Robin Washington: In fact, Service and Platform were in all of our top 10 wins, and 70% of our top 100 wins included five or more clouds. Further, building on that solid foundation, data and AI products were in 60 deals greater than $1 million. Our consumption model is showing strong early success. I want to underscore what Marc just talked about. More than 40% of our Data Cloud and Agent Force bookings this quarter came from existing customers expanding their investment. Agentic AI and data make the capabilities of our unified platform, the information, the logic, and the workflows more important and valuable than ever before. We are making it even easier for new customers to get started. Last month, we announced new flexible payment options for Agent Force, including pay-as-you-go, to lower the barrier to adoption and encourage experimentation.

Speaker #4: Further, building on that solid foundation, data and AI products were in 60 deals greater than $1 million. Our consumption model is showing strong early success.

Speaker #4: I want to underscore what Marc just talked about. More than 40% of our Data Cloud and agent force bookings this quarter came from existing customers expanding their investment.

Speaker #4: Agentic AI and data make the capabilities of our unified platform— the information, the logic, and the workflows— more important and valuable than ever before.

Speaker #4: And we are making it even easier for new customers to get started. Last month, we announced new flexible payment options for Agent Force, including pay-as-you-go, to lower the barrier to adoption and encourage launch. Last quarter, FlexCredits accounted for 80% of Agent Force Q2 new bookings.

Speaker #4: And we are making it even easier for new customers to get started. Last month, we announced new flexible payment options for our agent force, including pay-as-you-go, to lower the barrier to adoption and encourage experimentation.

Robin Washington: Following their launch last quarter, flex credits now account for 80% of Agent Force Q2 new bookings. As customer zero, our internal deployment is key to our second priority, operational excellence, to maximize shareholder value. In Q2, we expanded 24/7 instant support to six new languages, which, combined with English, now cover over 94% of our global case volume. Earlier this year, we launched our IT and HR agents in Slack to support our employees. In July, we launched dozens more specialized agents in Slack. We believe that being agent-first is a key driver of our own long-term margin expansion. As part of our lean agentic enterprise transformation, we're making smart trade-offs as we manage our portfolio of products and in-markets. We are reallocating resources and ruthlessly prioritizing our investments to accelerate data and AI adoption and drive further growth.

Speaker #4: Now cover over 94% of our global case volume. Earlier this year, we launched our IT and HR agents in Slack to support our employees, and in July, we launched dozens more specialized agents following their introduction in Slack.

Speaker #4: We believe that being agent-first is a key driver of our own long-term margin expansion. As part of our lean agentic enterprise transformation, we're making smart trade-offs as we manage our portfolio of products and end markets.

Speaker #4: We are reallocating resources and ruthlessly prioritizing our investments to accelerate data and AI adoption and drive further growth. Finally, all of this is underpinned by our third priority: maintaining a responsible capital allocation strategy.

Robin Washington: Finally, all of this is underpinned by our third priority, maintaining a responsible capital allocation strategy. Our strategy is simple. Make disciplined investments to fuel profitable growth and maintain a balanced approach of return of capital to our shareholders via share repurchases and dividends. Leveraging our responsible M&A framework, we are making strategic investments that accelerate our agentic roadmap. In the last few months, we closed the acquisitions of Convergence AI, Bluebirds, and WHY, and entered into a definitive agreement to acquire Regrello, bringing in key talent and technology to accelerate our innovation. These assets will unlock valuable new data and agentic capabilities for our customers. Also, a quick update on Informatica. We now expect Informatica to close in the fourth quarter of FY26 or early in FY27. At this time, given the variability in potential closing timing, we have not included any contribution from Informatica in our guidance.

Speaker #4: Our strategy is simple: make disciplined investments to fuel profitable growth and maintain a balanced approach of capital return to our shareholders via share repurchases and dividends.

Speaker #4: Leveraging our responsible M&A framework, we are making strategic investments that accelerate our agentic roadmap. In the last few months, we closed the acquisitions of Convergence AI, Bluebirds, and Why.

Speaker #4: And entered into a definitive agreement to acquire Regrello, bringing in key talent and technology to accelerate our innovation. These assets will unlock valuable new data and agentic capabilities for our customers.

Speaker #4: Also, a quick update on Informatica. We now expect Informatica to close in the fourth quarter of FY26 or early in FY27. At this time, given the variability in potential closing timing, we have not included any contribution from Informatica in our guidance.

Speaker #4: And on capital return, in Q2, we returned $2.6 billion to shareholders through buybacks and dividends. This brings our total capital return since the program began to nearly $27 billion.

Robin Washington: On capital return, in Q2, we returned $2.6 billion to shareholders through buybacks and dividends. This brings our total capital return since the program began to nearly $27 billion. I'm pleased to announce that our board has approved a $20 billion expansion of our share repurchase authorization. Let's get into guidance. We are pleased to raise the low end of our fiscal year 2026 revenue guidance to $41.1 to $41.3 billion. This results in growth of approximately 8.5% to 9% year over year in nominal and 8% in constant currency. On foreign exchange, we now expect a $300 million tailwind, up $50 million since our last print. We are reiterating our subscription and support revenue growth of approximately 9% year over year in constant currency, driven by the momentum in Data Cloud and Agent Force this year.

Speaker #4: And today, I'm pleased to announce that our board has approved a $20 billion expansion of our share repurchase authorization. So finally, let’s get into guidance.

Speaker #4: We are pleased to raise the low end of our fiscal year 2026 revenue guidance to $41.1 to $41.3 billion. This results in growth of approximately 8.5% to 9% year over year in nominal terms and 8% in constant currency.

Speaker #4: On foreign exchange, we now expect a $300 million tailwind, up $50 million since our last print. We are reiterating our subscription and support revenue growth of approximately 9% year over year in constant currency.

Speaker #4: Driven by the momentum in data cloud and agent force this year, this is partially offset by weakness in marketing and commerce and slower growth in our expiration base.

Robin Washington: This is partially offset by weakness in marketing and commerce and slower growth in our expiration base. We are pleased to raise our non-GAAP operating margin 10 basis points to 34.1% for the year, building on the continuous improvement from the last few years and aligned with our ongoing commitment to long-term margin improvement. We now expect GAAP operating margin of 21.2%. This is inclusive of additional restructuring charges. We are also raising our annual guidance on operating cash flow growth to 12% to 13%. This is driven by cash tax savings as a result of the recently enacted tax bill. We now expect CapEx of slightly below 2% of revenue, resulting in free cash flow growth of 12% to 13%. Turning to Q3 guidance, revenue is expected to be $10.24 billion to $10.29 billion, up 8% to 9% year over year in nominal and 8% in constant currency.

Speaker #4: We are pleased to raise our non-GAAP operating margin by 10 basis points to 34.1% for the year, building on the continuous improvement from the last few years and aligned with our ongoing commitment to long-term margin improvement.

Speaker #4: We now expect GAAP operating margin of 21.2%. This is inclusive of additional restructuring charges. We also are raising our annual guidance on operating cash flow growth to 12% to 13%.

Speaker #4: This is driven by cash tax savings as a result of the recently enacted tax bill. We now expect CapEx to be slightly below 2% of revenue.

Speaker #4: Resulting in free cash flow growth of 12% to 13%. Turning to Q3 guidance, revenue is expected to be between $10.24 billion and $10.29 billion, up 8% to 9% year over year in nominal terms and 8% in constant currency.

Speaker #4: CRPO growth for Q3 is expected to be slightly above 10% year over year in nominal terms, including a $300 million FX tailwind, resulting in slightly above 9% constant currency growth.

Robin Washington: CRPO growth for Q3 is expected to be slightly above 10% year over year in nominal, including a $300 million CapEx tailwind, resulting in slightly above 9% constant currency growth. As a reminder, while we have seen more normalized bookings growth recently, CRPO will continue to be impacted by the cumulative effect of the measured sales performance that started in Q2 fiscal year 2023. In closing, we continue to deliver strong results. By investing with discipline, we are positioning ourselves incredibly well for the agentic future. We're excited to share more about our product strategy and how we are delivering the agentic enterprise at Dreamforce in October. I look forward to seeing many of you there. I'll turn it back over to Mike.

Speaker #4: As a reminder, while we have seen more normalized bookings growth recently, CRPO will continue to be impacted by the cumulative effect of the measured sales performance that started in Q2 of fiscal year 2023.

Speaker #4: In closing, we continue to deliver strong results, and by investing with discipline, we are positioning ourselves incredibly well for the agentic future. We're excited to share more about our product strategy and how we are delivering the agentic enterprise at Dreamforce in October.

Speaker #4: I look forward to seeing many of you there. I'll turn it back over to Mike.

Speaker #2: Thanks, Robin. Operator, we'll take the first question, please.

Mike Spencer: Thanks, Robin. Operator, we'll take the first question, please.

Speaker #5: We will now begin Q&A. For today's session, we will be utilizing the raise hand feature. If you'd like to ask a question, simply click on the raise hand button at the bottom of your screen.

Layla: We will now begin Q&A. For today's session, we will be utilizing the Raise Hand feature. If you'd like to ask a question, simply click on the Raise Hand button at the bottom of your screen. Once you've been called on, please unmute yourself and begin to ask your question. Please limit to one question. Thank you. We will now pause a moment to assemble the queue. Your first question will come from Cash Rangan with Goldman Sachs. Your line is now open. Please go ahead.

Speaker #5: Once you’ve been called on, please unmute yourself and begin to ask your question. Please limit yourself to one question. Thank you. We will now pause for a moment to assemble the queue.

Speaker #5: Your first question will come from Cash Rangan with Goldman Sachs. Your line is now open. Please, go ahead.

Speaker #6: Hi, thank you very much. One for you, Marc. A debate that has surfaced lately is whether SaaS has outlived its long run. Tech cycles have rarely lasted this long.

Analyst: Hi. Thank you very much. One for you, Marc. A debate that has surfaced lately is, has SaaS outlived its long run? Tech cycles have rarely lasted this long. How defensible is SaaS, particularly the category that you're in within SaaS, against disruption from AI-native apps and maybe custom-built AI? If I could sneak one for you, Robin, you have Data Cloud and Agent Force showing triple-digit growth. When does that inflect the top line? Thank you so much.

Speaker #6: So how defensible is SaaS, particularly the category that you're in, within SaaS? Against disruption from AI-native apps and maybe custom-built AI? And one, if I could sneak one for you, Robin, your data cloud and agent force showing triple-digit growth.

Speaker #6: When does that inflect the top line? Thank you so much.

Speaker #2: Well, thanks, Cash. I think that you're absolutely right. The software industry is going through a tremendous transformation, and it's really driven by the fundamental acceleration of artificial intelligence.

Marc Benioff: Thank you, Cash. I think that you're absolutely right. The software industry is going through a tremendous transformation, and it's really driven by the fundamental acceleration of artificial intelligence. I think you know that Salesforce has been AI for more than a decade with our Einstein platform. It was really the emergence of the large language models that are giving us a new platform that we can build on and extend our applications with. That idea that all of a sudden, we've been running customer service here at Salesforce, as I mentioned, since we started 26 years ago on our own app. What that meant was that there were humans, about 6,000 of them or 7,000 or 8,000 of them or 9,000, whatever the number is. Those humans are there working on the application.

Speaker #2: Now, I think you know that Salesforce has been AI for more than a decade with our Einstein platform, but it's really the emergence of large language models that are giving us a new platform that we can build on and extend our applications with.

Speaker #2: And that idea that all of a sudden, you know, we've been running customer service here at Salesforce, as I mentioned, you know, since we started 26 years ago, on our own app.

Speaker #2: And what that meant was that there were humans, you know, about 6,000 of them or 7,000 or 8,000 of them or 9,000, whatever the number is, well, those humans they're there working on the application and they are adding to it and changing it and working with it and so forth and so on.

Marc Benioff: They are adding to it and changing it and working with it and so forth and so on, resolving cases and talking to customers and also posting information on our website and helping customers to find new ways to resolve their issues. This year, we've now built an incredible new capability called Agent Force. By building that capability, there is an agent, an incredibly intelligent piece of software that's also now directly working with the customer. We have humans working with the customers like we have, and now also agents. It's not just at some small scale. It's actually at a large scale. In the last nine months, about 1.5 million conversations happened directly with these agents, and 1.5 million of these conversations happened with humans. It's those apps, and it's the agents working together. It's not that the agents have completely taken over the customer support channel at Salesforce.

Speaker #2: And resolving cases, talking to customers, and posting information on our website, helping customers find new ways to resolve their issues.

Speaker #2: And then all of a sudden this year, we've now built an incredible new capability called Agentforce. By building that capability, there is an agent, you know, kind of an incredibly intelligent piece of software that's also now directly working with the customer.

Speaker #2: So we have humans working with the customers like we have, and now also agents. And it's not just at some small scale; it's actually at a large scale.

Speaker #2: In the last nine months, about a million and a half conversations happened directly with these agents, and a million and a half of these conversations happened with humans.

Speaker #2: And so it's those apps, and it's the agents working together. Now, it's not that the agents have completely taken over. The customer support channel at Salesforce is just not possible because AI, as we all know, these large language models only have a certain level of accuracy, and it's not 100%.

Marc Benioff: It's just not possible because AI, as we all know, these large language models only have a certain level of accuracy, and it's not 100%. It's probably about in the 90% range when it really gets well-architected with our Data Cloud and with all the different capabilities and really advanced techniques that we've come up with to make our AI as accurate as it can. By doing that, yes, there's a lot that we can resolve automatically through these agents with the customers, but there's also a lot that cannot be resolved, and that has to be escalated to the humans. It's humans and agents working together to satisfy customer success. This is what has been extremely important.

Speaker #2: It's probably about in the '90s when it really gets well-architected with our data cloud and with all the different kinds of capabilities, and kind of really advanced techniques that we've come up with to make our AI as accurate as it can.

Speaker #2: And so, by doing that, yes, there's a lot that we can resolve, you know, automatically through the agents with the customers. But there's also a lot that cannot be resolved.

Speaker #2: And that has to be escalated to the humans. And so it's humans and agents working together to satisfy customer success. This is what has been extremely important.

Speaker #2: And it's all built on this huge data fabric, which is really our data cloud, our metadata, and really our system of record that we've built up with our customers over our two and a half decades.

Marc Benioff: It's all built on this huge data fabric, which is really our Data Cloud, our metadata, and really our system of record that we've built up with our customers over two and a half decades. That's about the 200 or 300 petabytes of information that we manage for our customers. That metaphor for sales, for service, that's also now happening for sales as well. As I mentioned, with this incredible new robotic salesperson that's out there, calling back every single one of our leads and setting appointments and even, in many places, closing deals. It's going to be true in every application we made. It's not about the fundamental, oh, I would say, elimination of SaaS. What I would say is the fundamental extension of SaaS.

Speaker #2: And that's about the two or three hundred petabytes of information that we manage for our customers. Now that metaphor for sales and service, well, that's also now happening for sales as well.

Speaker #2: You know, as I mentioned, with this incredible new robotic salesperson that's out there, you know, calling back every single one of our leads and setting appointments, and even in many places, closing deals.

Speaker #2: And it's going to be true in every application we made. So it's not about the fundamental, oh, I would say elimination of SaaS. What I would say is the fundamental extension of SaaS.

Speaker #2: And I think that the fever that we have around this will maybe be why we're one of the first companies at scale to not only deliver these solutions, but also use these solutions.

Marc Benioff: I think that the fever that we have around this, maybe this is why we're one of the first companies at scale to not only deliver these solutions, but use these solutions. I guess when I look at the other large enterprise software companies, and I look at their websites, and I look at how the capabilities that they're providing in terms of kind of same old FAQ systems and this kind of thing versus what we've done at help.salesforce.com, I'd say we're way ahead. I think we have a very crystal clear vision about what the future of enterprise software looks like and how we're going to be able to help customers achieve a level of success.

Speaker #2: I guess when I look at the other large enterprise software companies and I look at their websites, and I look at the capabilities that they're providing in terms of kind of same old FAQ systems and this kind of thing, versus what we've done at help.salesforce.com, well, I'd say we're way ahead.

Speaker #2: And I think we have a very crystal-clear vision about what the future of enterprise software looks like and how we're going to be able to help customers achieve a level of success.

Speaker #2: You know, over the weekend, I read that MIT study that's becoming very popular, which really goes to show, you know, that a lot of companies have thought they were on the right path with generative AI, building their own models, doing it themselves, hooking it all up.

Marc Benioff: Over the weekend, I read that MIT study that's becoming very popular, which really goes to show that a lot of companies have thought they were on the right path with generative AI, building their own models, doing it themselves, hooking it all up. Now they're claiming about 94% of those projects have failed. We've been saying that was going to happen for the last several years, as you know. That's not what our customers are saying. Our customers are saying that they're getting phenomenal results and that they have humans and agents working together to create a new level of customer success, or we say it at Salesforce, is an agentic enterprise.

Speaker #2: And now they're claiming about 94% of those projects have failed. Well, we've been saying that was going to happen for the last several years, as you know.

Speaker #2: But that's not what our customers are saying. Our customers are saying that they're getting phenomenal results and that they have humans and agents working together to create a new level of customer success, or what we say at Salesforce, is an agentic enterprise.

Speaker #4: Yeah, and maybe to add that, Cash, to your point, how should we think about revenue growth acceleration? I'll add to Marc's excitement. We really do see this as the opportunity to define the agentic enterprise.

Robin Washington: Yeah, and maybe to add to that, Cash, to your point, how should we think about revenue growth acceleration? I'll add to Marc's excitement. We really do see this as the opportunity to define the agentic enterprise. I'd say we're really starting to harvest the benefits of the investments that we've made in our products. We're continuing to double down on innovation, as I talked about, and we're placing bets in all the right areas: net new AOV, deployment of agents with FTEs, and our AE capacity and growing areas. I think one of the things we report to you is our cloud revenue on a quarterly basis for transparency. We're really evolving our pricing and our go-to-market strategy. It is early days in the adoption cycle, but we're really confident in our strategy to monetize AI.

Speaker #4: And I'd say we're really starting to harvest the benefits of investments that we've made in our products. We're continuing to double down on innovation, as I talked about, and we're placing bets in all the right areas.

Speaker #4: Net new AOV, deployment of agents with FDEs, and you know our AE capacity and growing areas. I think one of the things we report to you, our cloud revenue on a quarterly basis, for transparency, but we're really evolving our pricing and our go-to-market strategy.

Speaker #4: So yes, it is early days in the adoption cycle, but we're really confident in our strategy to monetize AI. We're focused on capturing the value for our customers, and I'd say we're really optimizing for usage of our platform.

Robin Washington: We're focused on capturing the value for our customers, and I'd say we're really optimizing for usage of our platform. We believe this will unlock deeper value across all of our core products over time.

Speaker #4: We believe this will unlock deeper value across all of our core products over time.

Speaker #2: Thanks, Cash. Operator, we'll take the next question, please.

Mike Spencer: Thanks, Cash. Operator, we'll take the next question, please.

Speaker #5: Your next question will come from Keith Weiss with Morgan Stanley. Your line is open. Please go ahead.

Layla: Your next question will come from Keith Weiss with Morgan Stanley. Your line is open. Please go ahead.

Speaker #6: Excellent. Thank you, guys, for taking the question. And Marc, I really agree with your characterization of the extension of SaaS versus the elimination of SaaS.

Analyst: Excellent. Thank you guys for taking the question. Marc, I really agree with your characterization of the extension of SaaS versus the elimination of SaaS. It almost seems like the market has a little bit of a mischaracterization of what generative AI is, thinking of it as a category versus a big extension of capabilities. I think Salesforce is showing their ability to deliver those capabilities. One of the stats that you talked about in the quarter was the 60% increase in pilot to production. Was there some technology catalyst or some implementation catalyst that caused that increase of conversions of the pilot projects into production? If so, what was that? Any color you could give us on what that looks like, what a production deal is going to look like around Agent Force versus what you've been seeing in the pilots.

Speaker #6: It almost seems like the market has a little bit of a mischaracterization of what generative AI is, thinking of it as a category versus a big extension of capabilities.

Speaker #6: And I think Salesforce is showing their ability to deliver those capabilities. One of the stats that you talked about in the quarter was the 60% increase in pilots to production.

Speaker #6: Was there some technology catalyst or some implementation catalyst that caused that increase of conversions of the pilot projects into production? If so, what was that?

Speaker #6: And any color you could give us on what that looks like, what a production deal is going to look like around Agentforce versus what you've been seeing in the pilots?

Speaker #2: Well, I'd really like to call in Miguel and Trini to kind of give you some real insights into what's going on in the field with our customers, because I think that will really illuminate for you some of the real-life examples that kind of, you know, get to what you're trying to point out.

Marc Benioff: I'd really like to call on Miguel and Srini to give you some real insights into what's going on in the field with our customers because I think it'll really illuminate for you some of the real-life examples that get to what you're trying to point out. Srini.

Speaker #2: Trini?

Speaker #7: Yeah, so I think there's a great question. So one of the things which we have been working very closely with our customers using our forward deployment engines and Motion and what we have been working and customers are at different stages, like, you know, some are in pilot, some are in production and doing multiple agents.

Analyst: Yeah. I think this is a great question. One of the things which we have been working very closely with our customers using our forward deployment engines and motion, and what we have been working and customers are at different stages. Like, you know, some are in pilot, some are in production and doing multiple agents. As we are learning, we are figuring out with our customers a lot of gaps in how they think about their product. They all try to do it, they do it yourself. They're realizing that you can't wipe gold away to enterprise reliability and security. That's why you hear a lot of customers or you hear a lot of news about pilot purgatory. Some of the special things we have to do in the product, for example, we worked with Equinox.

Speaker #7: And as we are learning, we are figuring out with our customers a lot of gaps in how they think about their product.

Speaker #7: They all try to do their do-it-yourself, and they're realizing that you can't wipe code away to achieve enterprise reliability and security. That's why you hear a lot of customers, or you hear a lot of news about pilot perpetuity.

Speaker #7: But some of the special things we had to do in the product— for example, we worked with Equinox and learned that for their brand image, the gym company had a lot of UI treatment and specialized branding. We added that in the product.

Analyst: We learned that for their brand image, the gym company, they had a lot of UI treatments, specialized branding, and we added it in the product. We are working with customers like Lennar and Adecco, where most of these places where the engineers were caught in what I call the prompt doom loop, where people are trying to write prompts and write prompts. Anybody who's an AI engineer will tell you it's very frustrating. You do it. One of the things we had to build is determinism in our agents, allowing them the power to leverage the power of the LLMs in a trusted level. Another thing in our own deployment, as we get to that, is at the entry level. As you go to real scale, initially, when we did help.salesforce.com, you would have a look at every answer the agents are doing and hand-tune it and understand it.

Speaker #7: Then we are working with customers like Lennar and Edico, where most of these places, the engineers were caught in what I call the prompt doom loop. Where people are trying to write prompts and write prompts, and anybody who's an AI engineer will tell you it's very frustrating, and you do it.

Speaker #7: So one of the things we had to build is determinism in our agents, allowing them to leverage the power of the LLMs in a trusted level.

Speaker #7: Another thing, in our own deployment, as we get to that is at the entry level. But as you go to real scale, initially when we did help.salesforce.com, you'd have to look at every answer the agents are giving and hand-tune it and understand it.

Speaker #7: But as you're trying to understand millions of such requests, you cannot do it. So we had to build into the product what we call the Agentforce Command Center, to enable observability and track it.

Analyst: As you're trying to understand millions of such requests, you cannot do it. We had to build in the product what we call Agent Force Command Center to enable observability and track it and performance manage, if you will, the agents in a scaled way. I think this is why we are seeing, as the statistic says, 40% of our revenue is coming from existing customers, increasing their consumption. They're really seeing that, hey, I got the first version. A series of tactical, practical features with a very close loop with our customers and hardening, deep integration with our Data Cloud and platform, really increasing the scale. That's just from engineering, customer success cycle, and the product adoption cycle. Of course, we have our field teams under Miguel, who are now trying to take this to market at different customers. I'll pass it to Miguel to add his context. Yeah.

Speaker #7: And performance manage, if you will, the agents on a scaled way. So I think this is why we are seeing, as the statistics say, 40% of our revenue is coming from existing customers, increasing their consumption.

Speaker #7: They're really seeing that, hey, I got the first version, so a series of tactical, practical features which are very close loop with our customers and hardening, deep integration with our data cloud and platform, really increasing the scale.

Speaker #7: And then that's just some engineering, customer success cycle, and the product adoption cycle. And then, of course, we have our field teams under Miguel, who are now trying to take this to market at different customers. I'll pass it to Miguel to add his context.

Speaker #6: Yeah, so thank you, Trini. And thank you for making Agentforce much faster to implement. Listen, let me take this back for a couple of seconds to the bigger picture.

Miguel Molano: Thank you, Srini. Thank you for making also Agent Force much faster to implement. Let me take this back for a couple of seconds to the bigger picture. I just turned 57 last week. I'm approaching 34 years of professional career. I don't think I've ever been this excited about our industry and the opportunity ahead of us.

Speaker #6: I just turned 57 last week. I'm approaching 34 years of professional career, and I don't think I've ever been this excited about our industry and the opportunity ahead of us.

Speaker #6: And the key is, and going back to Cash's question and also Keith's comment on the extensibility of these new AI capabilities. The key is with our core apps, which are nothing other than deterministic workflows that humans use every day.

Miguel Molano: The key is, and going back to Cash's question and also Keith's comment on the extensibility of these new AI capabilities, the key is with our core apps, which are nothing other than deterministic workflows that humans use every day, our Data Cloud, which is the single source of truth that humans and agents need to access, and our Agent Force agentic capabilities that are natively built in the apps and with the data, everything running on the same metadata language that humans and agents understand, this is the only one, the only way to scale AI. Let me give you a couple of examples. Marc alluded to DirecTV, incredible business value. This is one of the biggest flex credit customers that we have globally. They went from pilot to production in just two months in a very complex environment. They run all our applications.

Speaker #6: Our data cloud, which is a single source of truth that humans and agents need to access, and our Agentforce agentic capabilities that are natively built into the apps and with the data.

Speaker #6: Everything is running on the same metadata language that both humans and agents understand. This is the only one, the only way to scale AI. So let me give you a couple of examples. I mean, Marc alluded to DirecTV, which provides incredible business value.

Speaker #6: This is one of the biggest FlexCredit customers that we have globally. They went from pilot to production in just two months in a very complex environment.

Speaker #6: They run all our applications. Two things that are worth noting are they leverage data cloud at speed. All the billing information from their backend systems, through Microsoft, is going to data cloud.

Miguel Molano: Two things that are worth noting is they leverage Data Cloud at speed, all the billing information from their backend systems through MuleSoft going to Data Cloud. Of course, all the 10,000 agents are working on Service Cloud. That's a great example. Another example, which is funny because we've already talked about them, but the story is just getting better, is Falabella. It's the largest retailer in Latin America. Their main use case, they have several, but the main use case is, where is my order? They solve that question to the customers across the web, in-app, and WhatsApp. The pilot took two months from idea to production. They access their OMS system. They leverage the CRM data in Salesforce, knowledge articles that they put in Data Cloud. They connect Data Cloud to GCP. The value is extraordinary. The NPS has increased by 10%, 10 points from 70% to 80%.

Speaker #6: And then, of course, all the 10,000 agents are working on Service Cloud. So that's a great example. Another example, which is funny because we've already talked about them, but the story is just getting better.

Speaker #6: It's Falabella. It's the largest retailer in Latin America. Their main use case, they have several, but the main use case is 'Where is my order.'

Speaker #6: And they solve that question for the customers across the web, in-app, and WhatsApp. The pilot took two months from idea to production. They access their OMS system, leveraging the CRM data in Salesforce and the knowledge articles that they put in Data Cloud.

Speaker #6: They connect data cloud to GCP. And the value is extraordinary. The NPS has increased by 10%, 10 points from 70 to 70%. All the digital interactions, most of them, 70% of them have shifted to WhatsApp.

Miguel Molano: All the digital interactions, most of them, 70% of them have shifted to WhatsApp. The call volume has dropped by 25%. The very cool piece of the story here is they started being a decent multi-hundred thousand customer. In May, they came back to refill the tank. They nearly tripled the business on Agent Force. Now we are discussing again to double. The whole thing predicates on the fact that we are the only platform, the only software infrastructure that can bring the deterministic workflows, the data, and the agentic reasoning and actioning on the same platform. This is very exciting.

Speaker #6: And the call volume has dropped by 25%. But the very cool piece of the story here is they started being a decent multi-hundred-thousand customer.

Speaker #6: Then in May, they came back to refill the tank, and they nearly tripled the business on Agentforce. Now we are discussing again to double.

Speaker #6: And the whole thing predicates on the fact that we are the only platform, the only software infrastructure that can bring the deterministic workflows, the data, and the agentic reasoning and actioning on the same platform.

Speaker #6: And this is very exciting.

Speaker #2: So I'd just like to sum up and summarize that. I just want to kind of come back to Cash's comment and Keith. I think your comment is insightful.

Marc Benioff: I'd just like to summarize that. I want to kind of come back to Cash's comment. Keith, I think your comment is so insightful, especially when you put it together with Cash, which is like we are seeing one of the greatest transformations in software, the idea that we're moving from that enterprise software is just for human beings to where it's also having an agentic layer, and that together it's more powerful to serve customers, and that it can create enterprises that are much lower cost and much more efficient and much more capable and much more powerful. It's against this strange narrative that's out there that somehow enterprise SaaS or apps or something are going away. I guess nothing lasts forever, OK? I just look at how I'm running my own business and the business of our customers. I don't understand what the replacement is.

Speaker #2: But especially when you put it together with Cash, which is like we are seeing one of the greatest transformations in software; the idea that we're moving from the notion that enterprise software is just for human beings.

Speaker #2: To where it's also having an agentic layer, and that together it's more powerful to serve customers. It can create enterprises that are much lower cost, much more efficient, much more capable, and much more powerful.

Speaker #2: And it's against this strange narrative that's out there that somehow enterprise SaaS or apps or something are going away. Now, I guess nothing lasts forever.

Speaker #2: Okay? But I just look at how I'm running my own business and the business of our customers. I don't understand what the replacement is.

Speaker #2: So I just looked at this incredible next-generation transformational capability. I'm going to lay it all out at Dreamforce. By the way, in my keynote, I kind of threw away all my slides and said, let's just have 12 CEOs of the largest companies on the planet show you exactly what they're doing with this technology because it's crystal clear what the value proposition is.

Marc Benioff: I just look at this incredible next-generation transformational capability. I'm going to lay it all out at Dreamforce. By the way, my keynote, I kind of threw away all my slides. I said, let's just have 12 CEOs of the largest companies on the planet just show you exactly what they're doing with this technology because it's crystal clear what the value proposition is. To hear some of this nonsense that's out there in social media or in other places, people say the craziest things, but it's not grounded in any customer truth. I think this is what really gets down to the part and parcel of it all, which is we are in the greatest transformation of our industry, which I characterize as the agentic enterprise. The idea that there is, I'll just say, again, an AGI, that seems like a fantastical term.

Speaker #2: But to hear some of this nonsense that's out there in social media or in other places, people say the craziest things, but it's not grounded in any customer truth.

Speaker #2: And I think this is what really gets down to the part and parcel of it all, which is we are in the greatest transformation of our industry, which I characterize as the agentic enterprise.

Speaker #2: But the idea that there is, I'll just say again, an AGI that seems like a fantastical term. I know it's coming in the next week or two, evidently.

Marc Benioff: I know it's coming in the next week or two, evidently. This idea that there's some kind of AGI that's about to take over the whole world, let me just help everybody understand that's not exactly what's about to happen, that we have this incredible capability, which is the large language model, which is the next step in artificial intelligence. Yes, we have been able to find what we think is the perfect synergy between the large language model and enterprise software, which we call the agentic enterprise or agents.

Speaker #2: But this idea that there's some kind of AGI that's about to take over the whole world—well, let me just help everybody understand that's not exactly what's about to happen.

Speaker #2: That we have this incredible capability, which is the large language model, which is the next step in artificial intelligence. And yes, we have been able to find what we think is the perfect synergy between the large language model and enterprise software, which we call the agentic enterprise or agents.

Speaker #2: And this idea that you can deliver an agentic enterprise and you can do what we did, which is reduce your support heads and have an agentic layer, and have a more efficient company, make more money, do better for your shareholders, and also deliver a better experience for your customers and for your employees.

Marc Benioff: This idea that you can deliver an agentic enterprise, and you can do what we did, which is reduce your support heads and have an agentic layer and have a more efficient company and make more money and do better for your shareholders and also deliver a better experience for your customers and for your employees, that's what we're doing at Salesforce. Some of the other nonsense that's out there, I just cannot get my head around. By the way, I take everything very seriously. When somebody makes some big comment, I'm like, all right, I'm going to go out there and really look at that because I guess AGI is going to happen tomorrow. I'm ready for that. Oh, I really, OK, SaaS apps are going to, I'm going to go away. I'm going to go check that out. There is so much nonsense.

Speaker #2: Well, that's what we're doing at Salesforce. Some of the other nonsense that's out there, I just cannot get my head around. And by the way, I take everything very seriously.

Speaker #2: So when somebody makes some big comment, I'm like, all right, well, I'm going to go out there and really look at that because I guess AGI is going to happen tomorrow.

Speaker #2: So I'm ready for that. Or, oh, I really, okay, well, SaaS apps are going to, well, I'm going to go away. Well, I'm going to go check that out.

Speaker #2: But there's so much nonsense; you've got to separate the forest from the trees, or for those of us who are kind of Bible readers, maybe we separate the wheat from the chaff.

Marc Benioff: You got to separate the forest from the trees, or for those of us who are kind of Bible readers, maybe we separate the wheat from the chaff. I'll just tell you, as we separate the wheat from the chaff, just know there is truth out there. You have to go out there and really find it. The truth is always with the customers and also right here at customer zero. I plan to lay it all out for you at Dreamforce as well on October 14.

Speaker #2: And I'll just tell you, as we separate the wheat from the chaff, just know there is truth out there. And you have to go out there and really find it.

Speaker #2: And the truth is always with the customers. It’s also right here at Customer Zero. I plan to lay it all out for you at Dreamforce on October 14.

Speaker #6: Outstanding. Really looking forward to it.

Mike Spencer: Outstanding. Really looking forward to it.

Speaker #2: Thanks, Keith. Operator, we'll take the next question, please.

Marc Benioff: Thanks, Keith.

Mike Spencer: Operator, we'll take the next question, please.

Speaker #5: Your next question will come from Brentville with Jeffries.

Layla: Your next question will come from Brent Bill with Jefferies.

Speaker #6: Thanks. Marc, with the $20 billion addition to the buyback, there are questions about the strategy of leaning harder into the buyback and the balance of M&A.

Analyst: Thanks. Marc, with the $20 billion addition to the buyback, there's questions about the strategy of leaning harder into the buyback and the balance of M&A. Does this signal that you're leaning harder towards the buyback? Do you feel like you can do both M&A and the buyback? Just curious to get your thoughts. You have been doing higher frequency of deals. I think everyone would love to hear your perspective on what this means.

Speaker #6: And I guess, does this signal that you're leaning harder towards the buyback, or do you feel like you can do both M&A and the buyback?

Speaker #6: Just curious to get your thoughts. You have been doing a higher frequency of deals, and I think everyone would love to hear your perspective on what this means.

Speaker #2: Well, I think, and let me give you my vision, and then I’ll turn it over to Robin on execution. So I think at a high level, the most important thing is that we deliver extraordinary cash flow.

Marc Benioff: I think, and let me give you my vision. Let me turn it over to Robin on execution. I think at a high level, the most important thing is that we deliver extraordinary cash flow. That's number one. I think we are delivering extraordinary cash flow for an enterprise software company. I think one of the highest in the industry of any enterprise software company. While a lot of software companies and others have just thrown their cash flow away to go build data centers or do I don't even know what with their money, I'll just say that we are going to do three things with our money. One, we are going to provide a buyback, just like you said, because I think that is a great idea. We are also going to provide a dividend, which I think is also a great idea.

Speaker #2: That's number one. I think we are delivering extraordinary cash flow for an enterprise software company—one of the highest in the industry among any enterprise software companies.

Speaker #2: And while a lot of software companies and others have just thrown their cash flow away to go build data centers or do I don't even know what with their money, I'll just say that we are going to do three things with our money.

Speaker #2: One, we are going to provide a buyback, just like you said, because I think that is a great idea. We are also going to provide a dividend, which I think is also a great idea.

Speaker #2: And we're also going to use it to look around. And if we see great entrepreneurs or great technology or something that we've never seen before that just blows our mind, we're going to buy it.

Marc Benioff: We're also going to use it to look around. If we see great entrepreneurs or great technology or something that we've never seen before that just blows our mind, we're going to buy it. We saw that a couple of times, even during our quarter. You've heard this word Regrello, which is a word probably no one's ever heard before. We've been talking to them for almost a year. We know them because the CEO of Regrello and Srini used to work together at Oracle. The president of Regrello used to work here at Salesforce. We've been tracking this company. Our customer Dell took their supply chain and automated 20,000 users using Regrello. That got our attention. We saw our customer Mercedes start to implement it as well. We're like, what exactly is going on? They started building an agentic supply chain.

Speaker #2: And we saw that a couple of times, even during our quarter. You've heard this word "regrelo," which is a word you probably no one's ever heard before.

Speaker #2: And we've been talking to them for almost a year. We know them because the CEO of Regrelo and Trini used to work together at Oracle.

Speaker #2: And the president of Regrelo used to work here at Salesforce. We've been tracking this company, and then our customer, Dell, took their supply chain and automated 20,000 users using Regrelo, and that got our attention.

Speaker #2: And then we saw our customer, Mercedes, start to implement it as well. And then we were like, what exactly is going on? And they started building agentic supply chains.

Speaker #2: And when we saw the technology, we said, "Oh wow, this might even be bigger than Agentic Supply Chain." We just couldn't get our heads around how they were doing exactly everything they were doing.

Marc Benioff: When we saw the technology, we said, oh, wow, this might even be bigger than agentic supply chain. We just couldn't get our head around how they were doing exactly everything they were doing. It took us about nine months of due diligence. Finally, we said, we think we're going to buy Regrello. We just love this company. There's other little companies that we found. You heard that word, Bluebirds. There's other little things out there that we've seen. When you have $15 billion of cash flow in a single year, like this year, and I think you know next year is going to be bigger, we plan to use it in a smart way.

Speaker #2: And it took us about nine months of due diligence, and then finally we said, well, we think we're going to buy Regrelo. We just love this company.

Speaker #2: And there are other little companies that we found. You've heard that word, Bluebirds. There are other little things out there that we've seen. But you know, when you have $15 billion of cash flow in a single year like this year, and I think you know next year is going to be bigger.

Speaker #2: That we plan to use it in a smart way. And I think that that trinity of using it for buybacks, using it for dividends, and also using it to provide inorganic innovation is the right idea in a balanced framework, which is the one that we've laid out in previous earnings calls.

Marc Benioff: I think that that trinity of using it for buybacks, using it for dividends, and also using it to provide inorganic innovation is the right idea and a balanced framework, which is the one that we've laid out in previous earnings calls. I think we're executing it super well. I think you also know we even have this super strategic acquisition that's getting teed up that we've been talking about now for several quarters to bring in because, look, every single customer is going through every AI transformation is a data transformation. It's not really spoken for some reason by others. If you don't have your data right, you don't get your AI right. We all understand that. We think that every customer is going to need an Informatica. Every customer is going to need a MuleSoft. Every customer is going to need a Data Cloud.

Speaker #2: And I think we're executing it super well. And I think you also know we even have this super strategic acquisition that's getting teed up.

Speaker #2: That we've been talking about now for several quarters to bring in because, look, every single customer is going through every AI transformation as a data transformation.

Speaker #2: It's not really spoken about for some reason by others, but if you don't have your data right, you don't get your AI right. And so we all understand that.

Speaker #2: And we think that every customer is going to need an Informatica. Every customer is going to need a MuleSoft. And every customer is going to need a data cloud.

Speaker #2: And together we think that's called the AI foundation. That AI foundation is the Data Cloud, plus MuleSoft, plus Informatica. If you're going to roll out Agentforce, you're going to need an AI foundation made up of those three things.

Marc Benioff: Together, we think that's called the AI Foundation. That AI Foundation is the Data Cloud plus MuleSoft plus Informatica. If you are going to roll out Agent Force, you're going to need an AI Foundation made up of those three things. That all comes out of thinking about cash flow. I think that we have clarity around where we're going. Robin, why don't we talk about exactly how you're going to execute that?

Speaker #2: So that all comes out of, you know, thinking about cash flow. I think that we have clarity around where we're going. Robin, why don't we talk about exactly how you're going to execute that?

Speaker #4: Well, I think you summed it up well, Marc, in terms of the Trinity. We're balanced. We have a disciplined M&A framework. We're going to be opportunistic.

Robin Washington: I think you summed it up well, Marc, in terms of the Trinity. We're balanced. We have a disciplined M&A framework. We're going to be opportunistic. We've clearly made a big bet on Informatica. That's our large acquisition. As you said, we're going to be, particularly as it comes to the agentic stage, if we see other things out there that make sense, we're going to buy them. Our strong free cash flow allows us to do that. We also will stay disciplined relative to returning value to shareholders. Maybe we'll move to the next question, Mike.

Speaker #4: We clearly made a big bet on Informatica. That's our large acquisition, but as you said, we're going to be particularly focused as it comes to the agentic stage.

Speaker #4: If we see other things out there that make sense, we're going to buy them. Our strong free cash flow allows us to do that.

Speaker #4: But we also will stay disciplined relative to returning value to shareholders. Maybe we'll move to the next question, Mike.

Speaker #2: Thanks, Brent. Operator, we'll take the next question, please.

Mike Spencer: Thanks, Brent. Operator, we'll take the next question, please.

Speaker #5: Your next question will come from Kirk Matern at Evercore.

Layla: Your next question will come from Kirk Matern at Evercore.

Speaker #6: Yeah, thanks very much. I think this one's either from Marc or Miguel, but you know there's two cores in a row. You've mentioned that the Creighton closed business has been pretty strong, and as we think about AI doing more work on behalf of customers, I was kind of curious just as your view of whether the mid-market becomes more of a source of durable growth for you all as we look out over the next few years.

Analyst: Yeah, thanks very much. I think this one's either for Marc or Miguel. You know, this is two quarters in a row, you've mentioned the create and close business has been pretty strong. You know, as we think about AI doing more work on behalf of customers, I was kind of curious just as your view of whether the mid-market becomes more of a source of durable growth for you all as we look out over the next few years. Marc, you mentioned that in relation to the IT service management opportunity. Just kind of curious about what you're seeing in the mid-market and if this can sort of be a more expansive opportunity for you all as we look out. Thanks.

Speaker #6: Marc, you mentioned that in relation to the ITSM opportunity. Just kind of curious about what you're seeing in the mid-market and if this can sort of be a more expansive opportunity for you all as we look out.

Speaker #6: Thanks.

Speaker #2: Well, I really appreciate that question, and it was very much a corridor strategy and has been for 26 years. But we don't really talk about it as aggressively as we should.

Marc Benioff: I really appreciate that question. It's very much a corridor strategy and has been for 26 years. We don't really talk about it as aggressively as we should. I think there might have been a point of confusion. Let me just help to provide some clarification, which is that unlike other enterprise software companies, we're extremely committed to what we call our five-segment strategy. The five-segment strategy, maybe six, I'll say, but let's say our five-segment strategy, and I'll lay out what six is, but really is a five-segment strategy. Number one, hey, we love enterprises. We love the biggest enterprises. We used a lot of big enterprise names, Fortune 100 names on this call. We love those customers. They're great. We love them. They're very profitable. It's a fantastic segment to be in. It's not the only segment of business.

Speaker #2: And so I think there might have been a point of confusion. So let me just help to provide some clarification, which is that, unlike other enterprise software companies, we’re extremely committed to what we call our five-segment strategy.

Speaker #2: And the five segment strategy may be six, I'll say, but let's say our five segment strategy and I'll lay it out in what six is, but really is five segment strategy is number one, hey, we love enterprises.

Speaker #2: And we love the biggest enterprises, and we used a lot of big enterprise names, Fortune 100 names, on this call. We love those customers; they're great.

Speaker #2: We love them. They're very profitable. It's a fantastic segment to be in. But it's not the only segment of business. Small and medium businesses, which are kind of like zero to 200 employee companies, we're extremely strong in.

Marc Benioff: Small and medium business, which are kind of like 0 to 200 employee companies, we're extremely strong in. We always have been. We have products that are extremely relevant for them, including our sales and service products and core products, but even Slack and others. The SMB 0 to 200 business is way stronger right now than we've ever seen it. I think that part of the reason why that is is because AI makes every entrepreneur a super entrepreneur. AI makes every SMB business look more like a mid-market business. All of a sudden, you move from the 0 to 200 segment into the next segment, which call it, you know, 200 to 2,000 or 200 to 3,000 employees. As you kind of get into that next segment of the business world, you know, these are businesses that are starting to grow up, have real revenue, need real systems.

Speaker #2: We have always been. We have products that are extremely relevant for them, including our sales and service products and core products, but even Slack and others.

Speaker #2: And the SMB zero to 200 business is way stronger right now than we've ever seen it. I think that part of the reason why that is, is because AI makes every entrepreneur a super entrepreneur.

Speaker #2: And AI makes every SMB business look more like a mid-market business. So, all of a sudden, you move from the zero to 200 segment into the next segment, which is, you know, 200 to 2,000 or 200 to 3,000 employees.

Speaker #2: But as you kind of get into that next segment of the business world, you know, these are businesses that are starting to grow up, have real revenue, need real systems. They look like real companies; they don't have tens of employees, they have hundreds of employees, and they now have thousands of employees.

Marc Benioff: They look like real companies. They don't have tens of employees. They have hundreds of employees. They have now thousands of employees. Those companies, they need real software too. They don't have CIOs. They don't have DIY. They need prepackaged software. You know, they're not really dealing with the hyperscalers or the large-scale SIs. They're dealing with us. We are their hyperscaler. We are their software hyperscaler. We're not, we're, you know, they look to us as a company like that they might look to a super big company might have every option. These companies don't have every option. This is a huge segment of the market. The next part of the market is kind of the traditional, we call general business market or high end of the mid-market business, which could be like anywhere from a couple thousand employees to maybe 5,000 or 6,000 employees.

Speaker #2: And those companies, they need real software too. But they don't have CIOs. They don't have DIY. They need prepackaged software, and, you know, they're not really dealing with the hyperscalers or the large-scale SIs.

Speaker #2: They're dealing with us. We are their hyperscaler. We are their software hyperscaler. We're not, you know, they look to us as a company like they might look to a super big company that might have every option.

Speaker #2: These companies don't have every option, and this is a huge segment of the market. The next part of the market is kind of the traditional, we call it the general business market or the high end of the mid-market business.

Speaker #2: Which could be like anywhere from a couple thousand employees to maybe 5,000 or 6,000 employees. And this also is an extremely fast-growing part of the business.

Marc Benioff: This also is an extremely fast-growing part of the business. I cannot tell you why, but we see it. Miguel and I talk about it almost every day, that not only SMB business, but this mid-market and general business is growing super fast. When I talk to my friends who run the large SIs, I've been encouraging them to move their business downstream to serve these companies that have single-digit thousand employees. That is, you know, in the 1 to 10,000 employees. Because what happens is all of a sudden.

Speaker #2: Now, I cannot tell you why, but we see it, and Miguel and I talk about it almost every day. Not only is the SMB business growing, but this mid-market and general business is growing super fast.

Speaker #2: And when I talk to my friends who run the large SIs, I've been encouraging them to move their business downward, downstream. To serve these companies that have single-digit thousand employees, call it employees.

Speaker #2: So that is, you know, in the 1 to 10,000 employees. Because what happens is, all of a sudden when.

Speaker #1: Get into the next segment, which is segment, call it segment four, you get into the big boys, the big companies, the Fortune 100, 200, Fortune 500 companies, who have the tens of thousands of company employees, and they have maybe more options, but, and bigger budgets, and it's very exciting when you close one of these because you end up with some kind of mega transaction.

Marc Benioff: You get into the next segment, which is segment, call it segment four, you get into the big boys, the big companies, the Fortune 100, 200, Fortune 500 companies who have the tens of thousands of company employees, and they have maybe more options and bigger budgets. It's very exciting when you close one of these because you end up with some kind of mega transaction. They're going through a lot of transformation because they're being pitched a lot of different technology right now, and a lot of it is fantasy land. It's all going to play out in its own way in segment four. In segment five, it's the government. I think we all know that the government has been going through something that none of us have ever seen before in the last six months. We all understand the Doge revolution, and we're all watching that closely.

Speaker #1: But they're going through a lot of transformation because they're being pitched a lot of different technology right now, and a lot of it is fantasy land.

Speaker #1: But, you know, just, it's all going to play out in its own way in segment four. In segment five, it's the government. I think we all know that the government has been going through something that none of us have ever seen before in the last six months, and we all understand the Dodge GE revolution.

Speaker #1: And we're all watching that closely, and that is something that we're all, you know, the government is coming out of and is starting to acquire, like we talked about in our army transaction on the call.

Marc Benioff: That is something that we're all, you know, now the government is coming out of and is starting to acquire, like we talked about our Army transaction on the call. Segment six is really ISVs, and every ISV and ecosystem is going through a huge transformation as well. We see that in our AppExchange, but we probably have the most vibrant ecosystem in the world, which is Slack. If you haven't been on Slack to see what's happened on Slack, it's not just the ecosystem. All these next generation AI companies ranging from OpenAI to Anthropic to everyone are on Slack. It is incredible how they've used that as their operating system and as their platform to run their companies. We're really bringing all of our core products down into Slack so that everything is Slack first. That's a term I used in the script.

Speaker #1: In segment six, it’s really ISVs. And every ISV and ecosystem is going through a huge transformation as well, and we see that in our AppExchange. But we probably have the most vibrant ecosystem in the world, which is Slack.

Speaker #1: If you haven't been on Slack to see what's happened on Slack, it's not just the ecosystem; all these next-generation AI companies, ranging from OpenAI to Anthropic to everyone, are on Slack.

Speaker #1: And it is incredible how they've used that as their operating system and as their platform to run their companies. And then, we're really bringing all of our core products down into Slack so that everything is Slack-first. It's a "turn-by-use" in the script, the idea that you'll be able to start Sales Cloud and start Service Cloud and all of our products, even our new ITSM product, from Slack-first.

Marc Benioff: The idea that you'll be able to start Sales Cloud and start Service Cloud and all of our products, even our new IT service management product from Slack first, and then move up. I think that's very exciting. You'll see all of that play out at Dreamforce as a lot of that gets released in our October release. Miguel, do you want to just fill in what I'm talking about?

Speaker #1: And then move up. I think that's very exciting, and you'll see all of that play out at Dreamforce. A lot of that gets released in our October release.

Speaker #1: And Miguel, do you want to just fill in what I'm talking about?

Speaker #2: Yeah, well, Pierre, you asked Mark's favorite question. So thank you for that. But listen, we are adding a lot of capacity to our business. At the end of Q2, we had added 20% more AEs than we did last year.

Miguel Molano: Yeah, Kirk, you asked Marc's favorite question, so thank you for that. Listen, we are adding a lot of capacity to our business, AI capacity. At the end of Q2, we had added 20% more AIs than we did last year. Obviously, it takes six to eight months for those AIs to ramp. On the low end of the market, actually, they ramp faster. We have a mantra that is grow what is growing. Today we see that the low end of the market and the mid-market is growing significantly, and it's growing significantly for two reasons. One is these customers want to become agentic enterprises, and they don't have Chief Digital Officers, they don't have CTOs, they don't have the complexity. They need a trusted partner where they bring the data, they bring the AI, embedding the applications, and they're buying faster than anything we've seen.

Speaker #2: Obviously, it takes six to eight months for those AEs to ramp. On the low end of the market, actually, they ramp faster. But we have a mantra that is, "grow what is growing," and today we see that the low end of the market and the mid-market are growing significantly, and it's growing significantly for two reasons.

Speaker #2: One is, these customers want to become agentic enterprises, and they don't have cheap digital offices. They don't have CTOs; they don't have the complexity. They need a trusted partner where they bring the data, they bring the AI, embedding it in the applications, and they're buying faster than anything we've seen.

Speaker #2: We also made some organizational changes. We brought the old Salesforce model back, we brought people to have, we hired faster, we enabled faster. The second reason it's growing a lot is because AI is creating more small and medium companies.

Miguel Molano: We also made some organizational changes. We brought the old Salesforce model back. We brought people to hubs. We hire faster. We enable faster. The second reason it's growing a lot is because AI is creating more small and medium companies. That opportunity is huge, and that's why we're investing significantly. We're investing significantly more in the mid and low end of the market than we're investing in the high end of the market. We're also growing double digit in capacity in the high end of the market. By the way, there are many other areas where we are investing and that we are seeing are having already impact in accelerating bookings. I see the pipeline into H2. The pipeline is growing in the high teens, and for big deals, it's actually approaching 20% growth. That's a really good time.

Speaker #2: So that opportunity is huge, and that's why we are investing significantly. We're investing significantly more in the mid and low end of the market than we are in the high end of the market. We're also growing double-digit in capacity in the high end of the market.

Speaker #2: But by the way, there are many other areas where we are investing, and that we are seeing are already having an impact in accelerating bookings.

Speaker #2: You know, I see the pipeline into H2; the pipeline is growing in the high teens, and for big deals, it's actually approaching 20% growth. That's a really good sign.

Speaker #2: We haven't seen that kind of pipeline in a long time. The agentic enterprise is really the next incredible investment cycle, and I think we are, as we discussed here, we have the right solver infrastructure to monetize these massive opportunities.

Miguel Molano: We haven't seen that kind of pipeline in a long time. The agentic enterprise is really the next incredible investment cycle, and I think we are, as we've discussed here, we have the right software infrastructure to monetize this massive opportunity. Our innovation keeps giving us, so thank you, Srini, thank you, Steve. I mean, this is an embarrassment of riches. When you look at the products that we're going to release in Q3, Agent Force, Boys, Tableau Next, Marketing Cloud Next just released recently. We just certified Agent Force and Data Cloud for government. That's going to be a monster opportunity for us. Life Science Cloud, we are killing Viva in many other in the turf. IT service management, Marc alluded to it. MuleSoft, Agentforce, Partner Cloud, all that is more and more products for our increased capacity to sell, and I'm not even including Informatica.

Speaker #2: Our innovation keeps giving us, so thank you, Srini, thank you, Steve. I mean, this is an embarrassment of riches. When you look at the products that we're going to release in Q3—Agentforce, Voice, Tableau Next, Marketing Cloud Next, which was just released recently—we just certified Agentforce and Data Cloud for government.

Speaker #2: That's going to be a monster opportunity for us. Life Science Cloud, we are killing Veeva in many, other, in their turf. ITSM, Marc alluded to it, new agent fabric, partner cloud, all that is more products for our increased capacity to sell, and I'm not even including Informatica.

Speaker #2: And new packaging, new pricing to monetize and make it simpler for customers to absorb these amazing innovations. As Marc, Robin, and Shrini said earlier, we have more and more Agentforce and Data Cloud customers.

Miguel Molano: New packaging, new pricing to monetize and make it simpler for customers to absorb this amazing innovation. As Marc and Robin and Srini said earlier, we have more and more Agentforce and Data Cloud customers. They bring shorter sell cycles. It's create and close. We've closed 40% of the ACV that we closed in Q2 just came from create and close, short sell cycles on Data Cloud and Agentforce existing customers. These are tangible examples of what we're doing now to accelerate the growth. Obviously, the low end of the market is great, but we are seeing growth everywhere.

Speaker #2: They bring shorter sales cycles; it's create and close. We've closed 40% of the ACV that we closed in Q2 just from create and close, with short sales cycles on Data Cloud and Agentforce existing customers.

Speaker #2: So, these are tangible examples of what we are doing now to accelerate growth. Obviously, the low end of the market is great, but we are seeing growth everywhere.

Speaker #1: Thanks, Kirk. Operator will take the next question, please.

Marc Benioff: Operator, we'll take the next question, please.

Speaker #3: Your next question will come from Mark Murphy with J.P. Morgan.

Mike Spencer: Your next question will come from Mark Murphy with JPMorgan.

Speaker #4: Well, thank you so much, Mark. You know, we've heard software companies say that they have held their headcount flat in their support organizations; we haven't heard anyone saying that they reduced headcount by close to 40% there.

Srini Talapragada: Thank you so much. Marc, you know, we've heard software companies say that they have held their headcount flat in their support organizations. We haven't heard anyone saying that they reduced headcount by close to 40% there, like you have. I'm curious, what do you think is holding other software companies back from seeing that kind of breakthrough? As you repurpose those support roles more into sales roles, what type of firepower do you see that giving you to try to drive some of the incremental top line growth that you referred to about 90 days ago?

Speaker #4: Like you have. I'm curious, what do you think is holding other software companies back from seeing that kind of breakthrough? And then, as you repurpose those sales roles into—excuse me—the support roles more into sales roles, what type of firepower do you see that giving you to try to drive some of the incremental top-line growth that you referred to about 90 days ago?

Speaker #1: Mark, it's a great question, and let me just say this: number one, you know, in our industry, people always overestimate what you can do in a year and underestimate what you can do in a decade.

Marc Benioff: Marc, it's a great question. Let me just say this, number one. In our industry, people always overestimate what you can do in a year and underestimate what you can do in a decade. It's hard for everybody to get their head around what's possible. We're sitting up here at the top of Salesforce Tower. I'm looking at Mount Diablo. If you were at Telegraph Hill and you were at Mama's Restaurant right now, you'd still be in San Francisco, but you wouldn't be able to see Mount Diablo. Maybe we just have a little more clarity from where we sit.

Speaker #1: And it's hard for everybody to get their head around what's possible. You know, we're sitting up here at the top of Salesforce Tower, and I'm looking at Mount Diablo.

Speaker #1: But if you were at, you know, Telegraph Hill and you were at Mama's Restaurant right now, you'd still be in San Francisco, but you wouldn't be able to see Mount Diablo.

Speaker #1: Maybe we just have a little more clarity from where we sit. But we can see crystal clear that Salesforce has the opportunity to do exactly what you're saying, which is to reduce everybody's support costs, to make everyone's sales organization a lot more productive, to make everyone's marketing have a much higher ROI, to make every field service technician a Superman or Superwoman, and to make every Slack user far more empowered in their organization than ever before.

Marc Benioff: We can see crystal clear that Salesforce has the opportunity to do exactly what you're saying, which is to reduce everybody's support cost, to make everyone's sales organization a lot more productive, to make everyone's marketing have a much higher ROI, to make every field service technician a Superman or Superwoman, and to make every Slack user far more empowered in their organization than ever before. I could go on and on and on. Why others are not doing this yet is, I think there's, maybe it's threefold. One is timing, like I'm saying. Two, it could just be there's a lot of nonsense, kind of to Cash's point, which I think Cash said really well, which is there are very smart people in our industry and other executives who are saying absolute nonsense. I don't understand why they're saying this nonsense.

Speaker #1: And I could go on and on and on. And why others are not doing this yet is, I think there's maybe a threefold reason. One is timing, like I'm saying.

Speaker #1: Two, it could just be, there's a lot of nonsense, kind of to Cash's point. You know, which I think Cash said really well, which is that there are very smart people in our industry and other executives who are saying absolute nonsense.

Speaker #1: And I don't understand why they're saying this nonsense. Maybe it's just to create a certain level of FUD in the market, but I think it's inappropriate at this point. What it's done for the whole enterprise software industry, I think, is crazy.

Marc Benioff: Maybe it's just to create a certain level of FUD in the market. I think it's inappropriate at this point. What it's done for the whole enterprise software industry, I think, is crazy. I would say the third thing is fear, because I think with fear, all of a sudden, as soon as you start to say, I'm going to make some dramatic change. Let me make one thing crystal clear, which is that the agentic enterprise, unlike every other kind of technology value proposition that we've kind of prophesized for the last 26 years, the one big difference is not only is it a radical technology transformation, as I articulated, humans and agents working together, it's also a radically different organizational transformation involving what the structure of your company looks like. You probably saw that we just put out a press release that we're restructuring our company.

Speaker #1: And I would say the third thing is fear. Because I think with fear, all of a sudden, as soon as you start to say, "I'm going to make some dramatic change," but let me make one thing crystal clear, which is that the agentic enterprise, unlike every other kind of technology value proposition that we've kind of prophesized for the last 26 years, the one big difference is not only is it a radical technology transformation, as I articulated, humans and agents working together, it's also a radically different organizational transformation involving what the structure of your company looks like.

Speaker #1: And you probably saw that we just put out a press release that we're restructuring our company. And everyone's like saying to me, "Why are you doing that?"

Marc Benioff: Everyone's saying to me, why are you doing that? What are you doing about this? What are you doing about that? You're making this change. Yes, we're taking out poor performers. We do that every year, but we're doing something else that's much more important. We're becoming an agentic enterprise. We realize that the opportunity at hand for us and for everyone, and for everyone on this call, is to build a radically new kind of company, a more profitable company, a higher revenue company, a company with better performing marketing programs, more productive employees, much more augmented customer opportunities and employee opportunities. This idea that we're going to radically impact and change how companies are shaped and operate, that we're not just going to build the software, it's the software and it's the structure.

Speaker #1: What are you doing about this? What are you doing about that? You're making this change. Yes, we're taking the poor performers; we do that every year.

Speaker #1: But we're doing something else that's much more important. We're becoming an agentic enterprise. We realize that the opportunity at hand for us and for everyone on this call is to build a radically new kind of company.

Speaker #1: A more profitable company, a higher revenue company, a company with better-performing marketing programs, more productive employees, and many more augmented customer opportunities and employee opportunities.

Speaker #1: This idea that we're going to radically impact and change how companies are shaped and operate, we're not just going to build the software; it's the software and it's the structure.

Speaker #1: You know, I've been on the road for eight weeks, and I'm just back after a meeting with hundreds of customers, primarily in Europe. In each and every single one, you know, it's a complex transformation, not just from the software side, but also from the human management, or what we call change management, side.

Marc Benioff: You know, I've been on the road for eight weeks, and I'm just back after meeting with hundreds of customers, primarily in Europe. In each and every single one, it's a complex transformation, not just from the software side, but also from the human management, or what we call change management side. I'm sure you're all familiar with the term change management. I'll just tell you, like I was with one of our customers that I love, which is Adecco, which is this incredible recruiting company. They're sitting with the CEO, and they're in France. Miguel is with me, and we're having a great conversation. The CIO is from Switzerland, and we're all sitting there, and each person is from a different part of Europe, and we're having a very robust conversation. They're rebuilding their whole business model, their technology model. They're rebuilding their whole company around this idea.

Speaker #1: I'm sure you're all familiar with the term change management. And so, you know, I'll just tell you, like I was with one of our customers that I love, which is Adecco, this incredible recruiting company.

Speaker #1: And they're, you know, sitting with the CEO and they're in France, Miguel is with me and we're having a great conversation and the, you know, the, the CIO is from Switzerland and we're all sitting there and there's, yeah, each person is from a different part of Europe and we're having a very robust conversation, but they're rebuilding their whole business model, their technology model, they're rebuilding their whole company around this idea.

Speaker #1: And in another case, we then drove to Schneider, who's been a customer of ours for like, I think, 20 years. And we've been, you know, known, I think, three or four Schneider CEOs and what the new CEO, Olivier, is amazing.

Marc Benioff: In another case, we then drove to Schneider, who's been a customer of ours for, like, I think, 20 years. We've known three or four Schneider CEOs, and I'm with the new CEO. Olivier is amazing. I had dinner with him in Dubai, and now I'm seeing him again in Paris, and we're just talking about this. I realized my job is to inspire and to energize and to motivate and to fundamentally show the vision of what is possible for the future of software itself for him. For him, it's really exciting because he not only is going to rebuild his company, but he can also rebuild the software that he builds and delivers to his customers.

Speaker #1: You know, I had had dinner with him in Dubai and now I'm seeing him again in Paris and we're just talking about this. And I realized my job is to inspire and to energize and to motivate and to fundamentally show the vision of what is possible for the future of software, itself, for him.

Speaker #1: And for him, it's really exciting because he not only is going to rebuild his company, but he can also rebuild the software that he builds and delivers to his customers.

Speaker #1: You know, and then we went up to, I got on the plane literally, I mean, just recalling my trip in my head right now, up to Amsterdam to talk to some of the banks up there.

Marc Benioff: Then we went up to, I got on the plane, literally, I'm just recalling my trip in my head right now, up to Amsterdam to talk to some of the banks up there. We went through this agentic enterprise vision with our Financial Services Cloud and how we rebuilt this product. I'll swim the sea. I'm with the CEO and the management team, and the CEO stops me at the end of the meeting and goes, I just want to tell you, this has been a great two hours, but we took our entire board meeting yesterday to only talk about what the potential is for agentic capability at our bank. I think in each and every case, every company is going to go through this dramatic transformation. There will be vendors that lay out what they think is the future.

Speaker #1: And we went through this agentic enterprise vision with our financial services cloud and how we've rebuilt this product and what, and I'll swim the sea, I'm with the CEO and the management team and the CEO stops me at the end of the meeting and goes, I just want to tell you, this has been a great two hours, but we took our entire board meeting yesterday to only talk about what the potential is for agentic capability at our bank.

Speaker #1: And I think in each and every case, every company is going to go through this dramatic transformation. Now, there will be vendors that lay out what they think is the future, and they could say, "Well, we're going to give you this large language model, you know, in your... I'm not going to go through the specific, you know, different models, but at the productivity level, or we're going to give you just a large language model, or we're going to do this for you."

Marc Benioff: They could say, we're going to give you this large language model, you know, in your, I'm not going to go through the specific, you know, different models, but at the productivity level, or we're going to give you just a large language model, or we're going to do this for you. I haven't found anyone other than Salesforce. I will say maybe there's a couple other peers of ours who then can come in at scale. I think we're the only ones who have rebuilt every single one of our product lines because I am super passionate that all of our products need to change and all of our customers need to adopt this and that we are going to do it through a whole different kind of business strategy.

Speaker #1: But I haven't found anyone other than Salesforce. And they all will say maybe there are a couple of other peers of ours who then can come in at scale; but I think we're the only ones who have rebuilt every single one of our product lines because I am super passionate that all of our products need to change and all of our customers need to adopt this. And that we are going to do it through a whole different kind of business strategy.

Speaker #1: And this is just a moment where you, you know, you can't feel or see what's about to happen. It is incredible. And it's not just about some kind of foundation model officially taking over every enterprise, because I've been to every customer on planet Earth, and I haven't seen that.

Marc Benioff: This is just a moment where, you know, if you can't feel or see what's about to happen, it is incredible. It's not just about some kind of foundation model is now officially taking over every enterprise because I've been to every customer on planet Earth that said, I haven't seen that. What I have seen is that, like in my own company, if you haven't seen it, come over. I'm going to show it to you myself that you can do things in a company that you could not do before, and it's all possible. You can do a lot of things, but one last thing, you cannot do everything. Folks that think that you can do everything or that this AGI is this, and now AGI is getting recast.

Speaker #1: But what I have seen is that, like in my own company, if you haven't seen it, come over. I'm going to show it to you myself.

Speaker #1: You can do things in a company that you could not do before, and it's all possible. You can do a lot of things, but there is one last thing: you cannot do everything.

Speaker #1: And folks that think that you can do everything, or that this AGI is this and now AGI is getting recast. AGI, no. You know, AGI used to be AGI is, let's say, the AI that basically is able to reinvent itself and build new models on its own.

Marc Benioff: AGI, no, you know, AGI used to be, AGI is, let's say, the AI that basically is able to reinvent itself and build new models on its own. Okay, so anyone who says now, AGI is just a version of a model that can now not only code but then refactor software. It's not, you know, everyone's trying to recast AGI because of a lot of aggressive comments about AGI from a few years ago. Let's just come back here. That's no, it's now being recast as superintelligence. The reality is you can see these large language models are actually hitting the upper limits of their existence. They are themselves finite data sets built on the internet, built on finite sets of algorithms, and we can see what those are and what they are not. There's no question about that.

Speaker #1: Okay? So anyone who says now, well, AGI is just a version of a model that can not only code, but then refactor software.

Speaker #1: It's not, you know, everyone's trying to recast AGI because of a lot of aggressive comments about AGI from a few years ago. So let's just come back here. That's no, I've now been recast as superintelligent. The reality is you can see these large language models are actually hitting the upper limits of their existence.

Speaker #1: They are themselves finite data sets, built on the internet, built on finite sets of algorithms, and we can see what those are and what they are not.

Speaker #1: There's no question about that, okay? But that idea that they're valuable—yeah, you can use them, coupled with enterprise software, to do some incredible things.

Marc Benioff: That idea that they're valuable, yeah, you can use them coupled with enterprise software to do some incredible things. Great, thanks, Marc. Operator, we'll take our last question now, please.

Speaker #1: Great. Thanks, Mark. Operator will take.

Speaker #2: Thank you.

Speaker #1: our last question now, please.

Speaker #3: Your final question will come from Ray Melancho with Barclays.

Mike Spencer: Your final question will come from Raimo Lenschow with Barclays.

Speaker #4: Perfect. Hey, just to wrap it all up together, if you think about it, you have more sales guys. As Miguel said, the agents should help you to get more productive.

Miguel Molano: Perfect. Hey, just two rapid roll up together. If you think about it, you have more sales guys, you know, as Miguel said, the agents should help you to get more productive. What does tell me about your confidence about the growth outlook going forward? Thank you. Could be a short answer.

Speaker #4: What does, tell me about your confidence about the growth outlook going forward. Thank you. Could be a short answer.

Speaker #1: Well, I think that Miguel was actually putting together a pretty compelling narrative around what we think is happening inside of our own company, and you can see it in the numbers if you look closely enough.

Marc Benioff: I think that Miguel was actually putting together a pretty compelling narrative around what we think is happening inside of our own company. You can see it in the numbers. If you look closely enough, you know, they're pretty exciting. You know, this is not a company in crisis. This is a company that is accelerating and doing things in new ways, is going through a huge innovation cycle, is innovating organically and inorganically, and has incredible levels of customer success. There is something bigger than that. I'll just let Miguel repeat what he said before because it was so subtle but yet so important because it is our growth ladder and it's our narrative on why we think we're going to see some incredible growth over the next six to eight quarters.

Speaker #1: You know, they're pretty exciting. And, you know, this is not a company in crisis. This is a company that is, you know, accelerating and doing things in new ways as it goes through a huge innovation cycle. It is innovating organically and inorganically, and it has incredible levels of customer success.

Speaker #1: But there is something bigger than that. I'll just let Miguel repeat what he said before, because it was so subtle, yet so important.

Speaker #1: Because it is our growth ladder, and it's our narrative on why we think we're going to see some incredible growth over the next six to eight quarters.

Speaker #2: Yeah, I think, thank you, Marc. I think, Raymar, you're thinking more about how the booking acceleration might flow through the top-line revenues.

Miguel Molano: Yeah, I think, thank you, Marc. I think, Raymo, you're thinking more about how the booking acceleration might flow through the top line revenues. Robin already alluded to that. My focus is accelerating bookings. I'm very happy with the execution of my team. I'm very positive about what is coming ahead, not just in H2, but also what is coming in the next fiscal year. We're already thinking about the next fiscal year. We wouldn't be investing at the rate that we're investing with very, very a lot of intentionality in the areas that are growing, in the areas that have higher margin. If we didn't see a great opportunity, we're sitting with Agent Force and Data Cloud in thousands of customers. I'm already seeing customers that have refilled the tank. We call it refill the tank when they come back and buy more data or more Agent Force credits.

Speaker #2: You know, Robin already alluded to that. My focus is accelerating bookings. I'm very happy with the execution of my team. I'm very positive about what is coming ahead, not just in H2, but also what is coming in the next fiscal year.

Speaker #2: We're already thinking about the next fiscal year. We wouldn't be investing, at the rate that we're investing, with very, very a lot of intentionality in the areas that are growing, in the areas that have higher margins, if we didn't see a great opportunity.

Speaker #2: We're seeing, with Agentforce and Data Cloud, in thousands of customers, I'm already seeing customers that have refilled the tank. We call it "refill the tank" when they come back and buy more data or more Agentforce credits. There is a customer that, in just three or four months, has refilled the tank three times. I gave you the example of Alabella.

Miguel Molano: There is a customer that in just three or four months, they refill the tank three times. I gave you the example of Falabella. When we have thousands of customers and we're going to have billions, billions of agents working, this is digital labor at scale, working in thousands of companies, just consuming, just operating, just driving value to the customers. Customers are going to need more credits, more fuel. I see a bright future. The bookings are very strong and I'm very confident in the future of the company.

Speaker #2: when we have thousands of customers, and we're going to have billions, billions of agents, working, this is digital labor, at scale, working in thousands of companies, just consuming, just operating, just driving value to the customers.

Speaker #2: And customers are going to need more credits, more fuel. And I see, I see a bright future, you know, the bookings are are very strong, and I'm very confident in the future of the company.

Speaker #1: Great. Thanks, Ray. I

Speaker #4: Thank you. Yeah, me too.

Srini Talapragada: Thank you. Yeah, me too.

Speaker #1: I appreciate everyone joining the call today, and I want to remind everyone to tune in to our product innovation webinar on Friday. We'll have a session focused on Agentforce adoption and Customer Zero.

Marc Benioff: I appreciate everyone joining the call today. I want to remind everyone to tune into our product innovation webinar on Friday. We'll have a session focused on Agent Force adoption and customer zero. Look forward to seeing you all then and over the coming weeks. Thank you.

Speaker #1: Look forward to seeing you all then, and over the coming weeks. Thank you.

Srini Talapragada: Thank you for joining.