CRM · Salesforce, Inc.
10-Q filed 2026-08-27 period 2026-07-31
77 Stable
confidence high · source filing on SEC.gov ↗
- Total debt increased to $39.3 billion, primarily driven by a $25.0 billion senior notes issuance in March 2026 and a $6.0 billion term loan.
- Announced two major cash acquisitions totaling $5.1 billion: Contentful Global for $1.5 billion and Intercom (Fin) for $3.6 billion.
- Strategic investment portfolio carrying value rose to $11.3 billion, with Anthropic representing 45 percent ($5.1 billion) of the total portfolio.
vs. prior filing (10-Q filed 2026-05-28) — ⚠ ALERT
FHS 84 → 77 (-7) · Strong -> Stable
Profitability -7Balance sheet -5Cash generation -10Risk flags -5Mgmt signal -13
Filing Health Score pillars
Profitability 25%
78
Revenue grew 10.8 percent year-over-year to $11,345 million, but operating income remained flat at $2,331 million due to higher operating expenses, indicating flat operating leverage for the quarter (Condensed Consolidated Statements of Operations).
Balance sheet 20%
65
Total debt increased significantly to $39,288 million from $14,439 million, while cash and marketable securities stood at $11,403 million, resulting in a current ratio of 0.84, though share count decreased due to aggressive buybacks (Condensed Consolidated Balance Sheets).
Cash generation 20%
85
Operating cash flow of $7,970 million for the first six months comfortably exceeds net income of $5,633 million, and low capital expenditures of $316 million reflect strong free cash flow conversion (Condensed Consolidated Statements of Cash Flows).
Risk flags 20%
80
No going concern or control weaknesses were reported, but there is high concentration risk in strategic investments with Anthropic representing 45 percent of the $11.3 billion portfolio, alongside rising cybersecurity and AI-related operational risks (Item 1A, Note 1).
Mgmt signal 15%
75
Management is signaling aggressive expansion with $5.1 billion in newly announced cash acquisitions for Contentful and Intercom, and has implemented a new ERP system, though they note potential integration and operational risks (MD&A, Item 1A).
Key metrics (Three Months Ended July 31, 2026)
period: Three Months Ended July 31, 2026
cash and equivalents: $8,310 million
total debt: $39,288 million
shares outstanding: 820 million
revenue: $11,345 million
net income: $3,526 million
operating cash flow: $1,269 million
Gemma triage notes (pre-analysis, second opinion)
risk_factors
Here’s a terse bullet-point analysis of the risk factors section, categorized for clarity: **Notable Changes:** * Increased emphasis on cybersecurity risks, particularly AI-related threats and vulnerabilities. * Expanded discussion of operational risks, including service disruptions and scalability challenges. **Red Flags:** * **Going Concern:** Repeated references to potential service disruptions and operational failures raise concerns about long-term viability. * **Restatement:** (Implied) The language suggests a need for ongoing vigilance regarding data integrity and potential inaccuracies. * **Litigation:** “Lawsuits against us by third parties” highlights a significant legal risk. * **Customer Concentration:** Implicitly addressed through discussions of attrition and reliance on third-party vendors. * **Control Weaknesses:** The extensive discussion of security breaches and vulnerabilities indicates potential weaknesses in internal controls. **Overall Tone:** * **Cautious & Defensive:** The language is highly cautionary, emphasizing potential risks and uncertainties. * **Reactive:** The document primarily focuses on mitigating existing and emerging threats rather than proactively outlining growth strategies. * **Complex & Technical:** The detailed descriptions of technical risks suggest a sophisticated, but potentially vulnerable, operation.
Automated research summaries derived from SEC filings. Not investment advice.