The paragraph introduces the Salesforce First Quarter Fiscal 2026 Results Conference Call. The operator informs participants that the call will begin shortly, with lines on mute to avoid background noise, and instructs how to ask questions during the Q&A session. Mike Spencer, Executive Vice President of Finance and Strategy and Investor Relations, begins the session, directing participants to resources such as the press release and SEC filings. He notes the presence of key executives, including Marc Benioff and Robin Washington, and highlights that some remarks may include forward-looking statements, which carry risks and uncertainties outlined in their SEC filings. Additionally, non-GAAP measures will be included in the commentary.

In the paragraph, Marc Benioff expresses enthusiasm about Salesforce's acquisition of Informatica for $8 billion. He highlights the long-term relationship and admiration he has had for the company since 2006, noting its advancements in cloud technology and engineering leadership. Benioff emphasizes the strategic significance of the acquisition, stating that it will combine Salesforce's AI CRM with Informatica's AI MDM and ETL capabilities. He describes the acquisition as a transformational step and expresses excitement about the alignment of both companies' teams and technologies.

The paragraph discusses the value and strategic importance of a recent company acquisition, emphasizing the careful consideration and discipline applied in the decision-making process. The speaker highlights the acquisition as beneficial, with favorable financial terms and alignment with Informatica's business needs, particularly as AI becomes crucial in business transformations. It underscores the importance of well-organized enterprise data in successful AI implementations, citing examples of companies undergoing such transformations. Additionally, it mentions strong performance and customer engagement in Informatica's AgentForce offering, illustrating the value of data management in achieving desired outcomes.

The paragraph discusses the strategic acquisition of Informatica by Salesforce and its integration into their broader business strategy. Marc highlights the importance of unifying and leveraging data across platforms like Informatica, Salesforce Data Cloud, and Tableau to drive their data business growth. Robin Washington elaborates on Salesforce's methodical acquisition strategy, emphasizing customer success, strategic fit, and value. The focus is on achieving financial benefits, including improvements in non-GAAP operating margin, EPS, and cash flow within two years post-acquisition. There's a strong emphasis on swift and efficient integration, aligning with Salesforce's recent acquisition practices.

The paragraph discusses Salesforce's recent strategic actions and financial performance. Salesforce plans to acquire Informatica, financing the deal with cash and new debt to avoid share dilution, and expects no disruption to its capital return strategy, including its share repurchase program and dividend. The deal is anticipated to close by early fiscal year 2027, aiming to enhance Salesforce's AI-driven growth. Salesforce reported strong Q1 results with an 8% increase in revenue to $9.83 billion, driven by robust growth in the small and medium market segments. The company achieved a 32.3% non-GAAP margin and generated $6.5 billion in operating cash flow. Its remaining performance obligation (RPO) grew by 13% year over year, and it increased its fiscal year 2026 revenue guidance by $400 million to $41.3 billion.

The paragraph highlights the company's successful quarter, marked by strong revenue, bookings, and currency trends, and a $41.3 billion guidance. It emphasizes the significant opportunity in AI, enterprise software, and digital labor, noting the rapid success of their AgentForce platform. The company has secured over four thousand paid deals and eight hundred production customers, including major companies like ENGIE. They've launched numerous prebuilt templates to ease deployment and introduced a new flexible pricing model based on customer feedback. Additionally, they plan to achieve FedRAMP high authorization for US public sector use, underscoring their leadership in digital labor.

The paragraph discusses the rapid success and growth of AgentForce and the data cloud. AgentForce, which enhances agent capabilities for employees and consumers, has quickly reached over a hundred million in annual order value and is recognized as a leading agent platform. The data cloud has also seen significant growth, surpassing twenty-two trillion records with a 175% year-over-year increase. A substantial portion of new bookings for both products comes from existing customers, indicating strong adoption and usage. The AI and data cloud sectors have seen over 120% growth in annual recurring revenue, becoming a billion-dollar segment for the company, showcasing significant innovation and expansion.

The paragraph discusses a company's rapid advancement and integration of AI technology, highlighting a transformation centered around their Adam framework, which includes apps, data, agents, and metadata. It references recent events, such as the New York World Tour and a Tableau conference in San Diego, where the enthusiasm of customers for new products like Tableau Next was evident. Tableau Next and Slack are cited as examples of this technological evolution, demonstrating the company's commitment to integrating AI and delivering innovative solutions through their comprehensive platform.

The paragraph discusses the integration of AgentForce with Slack to enhance workplace communication and efficiency by leveraging AI. It describes Slack as a central platform for managing work across various systems and apps, enabling real-time interactions and AI functionalities like meeting notes and channel summaries. It emphasizes the role of AgentForce in creating digital teammates for employees and highlights the components of ADAM—agents, data, apps, and metadata—as essential for a comprehensive enterprise experience. Thin Air's successful use of AgentForce to manage customer service and automate 80% of service queries, reducing onboarding time, is cited as an example of its effectiveness.

The paragraph discusses how Singapore Air and other airlines are leveraging Customer 360 apps and data cloud capabilities to enhance customer service. It highlights Falabella, a Latin American retail conglomerate, as a success story for using AgentForce. Falabella's use of WhatsApp for customer interactions, particularly for order inquiries, proved so effective in their Colombia business that it expanded across Latin America, turning a modest deal into a million-dollar one. Additionally, it mentions OpenTable's successful deployment of AgentForce, extending from restaurants to employees and consumers, showcasing the platform's impact.

The paragraph highlights several business initiatives and successes. Ramon at PepsiCo is working toward unifying their beverage and snack divisions under a "one PepsiCo" vision, leveraging data cloud technology. Meanwhile, Grupo Global, a Brazilian media company, achieved a 22% increase in global retention rates in three months by using AgentForce. In Europe, Angie has been assisting 83% of its users with AgentForce, resulting in high conversation rates. The paragraph also mentions various other companies like Smartsheet and one hundred account using AI, AgentForce, and data cloud technologies. Robin Washington, who recently assumed a new role, outlines her priorities for the upcoming year, which include focusing on customer success, AI adoption for growth, operational excellence, and responsible capital allocation. Progress is already being made on these fronts.

The paragraph highlights how the company is accelerating AI adoption and driving growth through its core cloud products, including sales, service, and data clouds. More than half of their top deals involve six or more of these products, emphasizing the power of their unified platform. It notes a flywheel effect, with 30% of new bookings coming from existing customers expanding their services. Data and AI are also significant, with large contracts involving these elements, and partners playing a crucial role in their success. The company is the fastest-growing ISV on AWS Marketplace and sees significant success in industry-specific solutions, particularly in life sciences and other sectors, with notable customers like Fox, Deloitte, Boeing, US Air Force, and University of Chicago Medicine.

Takeda is utilizing Salesforce's life sciences cloud, AgentForce, and Data Cloud to unify data and enhance its operations across medical, commercial, and patient care sectors. Salesforce's innovations, including a new mobile application, are driving customer adoption, upgrades, and better outcomes. By leveraging data and AI, Salesforce is enhancing operational efficiency and profitability, exemplified by successful use cases like improved sales interactions and streamlined customer support. The company has saved significant time and costs, reduced hiring needs, and plans to redeploy staff to higher-impact roles, demonstrating the effectiveness of its solutions for both itself and its customers.

The paragraph reports on the company's performance for the first quarter, highlighting a revenue increase to $9.83 billion, an 8% year-over-year growth. Subscription and support revenues rose by 9% in constant currency. A new metric, Net New ALV, is being used to incentivize field reps by measuring new and renewal performance together. The company experienced strong business growth in regions like the UK, France, Canada, and South Asia, and notable performance in the small and mid-market segments, as well as in the communications, media, health, and life sciences industries. However, sectors like retail, consumer goods, and the public sector were more stable. Operating expenses focused on sales, marketing, and R&D to push data and AI innovation. The remaining performance obligation increased to $60.9 billion, a 13% year-over-year rise.

In Q1, the company reported a strong financial performance, with a remaining performance obligation (CRPO) of $29.6 billion, up 12% year over year, and operating cash flow of $6.5 billion, up 4%. The company is investing in key areas while maintaining a focus on efficiency and profitable growth, returning over $3 billion to shareholders through dividends and share repurchases. Total cash returned since initiating their capital return program is over $24 billion. The company raised its fiscal year 2026 revenue guidance by $400 million, expecting revenue between $41 billion to $41.3 billion, driven by foreign exchange tailwinds. They project a steady demand environment, despite some weaknesses in marketing and commerce. They reaffirm non-GAAP operating margins of 34% and GAAP margins of 21.6%, with unchanged guidance for operating cash flow growth of 10% to 11% and free cash flow growth of 9% to 10%. Q2 guidance will follow.

The article discusses Salesforce's expected revenue growth, projecting $10.1 billion to $10.2 billion, an 8% to 9% increase year over year, with constant currency growth of 7% to 8%. CRPR growth for Q2 is projected at 10%, aided by a $300 million FX tailwind, leading to a 9% constant currency growth. The impact of previous sales performances and a slower expiration base on CRPO is also noted. Salesforce anticipates a strong start to FY 2026, emphasizing its platform's unification and technical leadership amid the digital labor revolution. The paragraph concludes with Salesforce's leadership welcoming questions during a call, with Mike Spencer inviting Keith Weiss of Morgan Stanley to inquire about the role of agent force and data cloud in driving growth beyond the current 10% rate.

Marc Benioff addresses a question about Salesforce's growth strategy, emphasizing the company's commitment to balanced execution while maintaining their margin and cash flow frameworks. He reiterates the importance of growth amid various "transformations" the company has undergone, such as in margins, cash flow, buybacks, dividends, and acquisitions. Benioff highlights the pivotal role of the current AI-driven "Agentic" moment in Salesforce's growth transformation. He notes that their primary growth strategy involves focusing on distribution, with Miguel Milano as the chief revenue officer leading these efforts.

The paragraph discusses the company's commitment to accelerating growth, particularly in small and medium businesses, the mid-market, and areas like Japan. It highlights core technologies such as data cloud and AI as key growth drivers. To support this expansion, the company plans to hire 1,000 to 2,000 more salespeople and invest in various business areas while maintaining margin and cash flow disciplines. The speaker, Marc, invites Miguel to elaborate on growth initiatives and future opportunities to increase revenue levels while adhering to financial discipline.

The paragraph emphasizes the company's focus on growth and its positive position in the market. It highlights the expansion in the employee base, particularly in areas of high productivity and growth, achieving a 14% year-on-year increase in account managers, with further growth expected. The company demonstrates strength in the data activation and agentic markets and is set to expand into the public sector. Growth indicators, like a strong sales pipeline and accelerating business momentum, are evident, with run rate operations being crucial to the business. There's an emphasis on closing big deals, and efforts have been made to simplify product pricing and packaging, enhancing customer relationships.

The speaker expresses excitement about the company's growth since joining in 2011, highlighting the momentum with AWS Marketplace, through which they've transacted two billion dollars, tripling year over year. The speaker, originally recruited from Oracle and McKinsey, returned to the company as Chief Revenue Officer after leaving Salesforce. The biggest surprise in Q1 was the unexpected momentum in the small, medium, and mid-market sectors, prompting a reevaluation of capacity allocation to ensure appropriate growth across all areas.

In the paragraph, the speaker discusses reallocating resources to focus on the low-end market, specifically targeting small to medium businesses for growth. There's an emphasis on expanding distribution capacity, with a goal of 22% overall growth by the end of the fiscal year. The speaker expresses a desire to accelerate growth beyond the current triple-digit rate, highlighting the importance of organizational participation in achieving this. Geographically, there is strong demand for their products in regions like Canada, South Asia, APAC, and parts of Europe, particularly in France and the UK, which have shown significant growth.

The paragraph discusses the overall positive outlook for the company's performance despite macroeconomic and tariff uncertainties. Demand is strong across all geographic areas, with a focus on activating data and having an identical ledger for applications. The company's balanced portfolio and strong momentum with data and AI, along with a modest contribution from Agentforce, provide confidence in future growth. Challenges have been factored into their strategy. The anticipated increase in AE (Account Executive) capacity for the second half of the year is also noted as a positive factor.

In the paragraph, Marc Benioff discusses the significant integration of Tableau with Salesforce's platforms and services, highlighting its role in strengthening the company's capabilities. Tableau is now deeply integrated into Salesforce's metadata platform, data cloud, and is interoperable with applications like Slack. Benioff emphasizes the transformation of Tableau's distribution strategy, with Tableau sales leaders now integrated into Salesforce's broader distribution organization, allowing all Salesforce salespeople to sell Tableau as part of the core product line. Additionally, there's a focus on Tableau's presence and functionality within Salesforce's core applications, indicating its strategic importance to the company.

The paragraph highlights the role of Srini, the Chief Engineering Officer, in leading the development of products on the Adam framework, which encompasses Tableau, customer support, professional services, and operations in South Asia. Srini emphasizes the growing importance of the "agent force" as a digital labor platform and its connection to the data strategy, involving data cloud and MuleSoft. Tableau is positioned to turn insights into action using the Adam framework, while Informatica will aid in advancing the data strategy.

The paragraph discusses the development of an enterprise-grade data platform integrating MuleSoft, Data Cloud, Tableau, and potentially Informatica, aimed at providing a trusted and scalable solution for enterprises. This development is expected to fulfill the promise of reliable agents that deliver value. The work over the past few years, including updates to the database layer with Hyperforce and the Adam framework, has been well-received by data scientists, who now see themselves as builders of these agents. In a Q&A, Brad Sills from Bank of America asks about the indicators suggesting the significance of this cycle for the company, such as data cloud deals and pilot initiatives, seeking assurance of its material impact.

In the paragraph, Marc Benioff discusses the rapid adoption and integration of a product called AgentForce, noting its significant impact in a short period of time. He highlights that a year ago, the term "agent" wasn't even mentioned in earnings calls, but now the company has 8,000 customers using it, with 4,000 paying customers. Unlike typical software products that take years to develop and implement, AgentForce has quickly scaled and is deeply integrated with Salesforce's other products, such as Data Cloud. He mentions that when AgentForce is sold, it brings along all the other Salesforce products, illustrating a major transformation within the company over the past two years.

Two years ago, the company underwent a significant financial and innovation transformation by rewriting its applications and data cloud, creating a unified platform called Hyperforce. This platform's enhanced capabilities make the acquisition of Informatica highly advantageous, as it complements and extends their offerings. The integration of Agentforce and the Data Cloud has been successful, with multiple major deals involving these services. Although not all top customers initially purchased these solutions, many are in negotiation stages. The company has recently seen a threefold increase in Data Cloud deals compared to the previous year, indicating strong growth and demand for their platform.

The paragraph discusses the company's new focus on consumption, which has aligned various departments such as finance, product, and engineering. The speaker's role has evolved to prioritize selling and managing substantial data consumption, with significant achievements in record ingestion. The concept of AgentForce, where thirty customers have renewed services, is highlighted as a success. Srini Talabergata elaborates on his role in customer success and professional services, emphasizing the importance of tight feedback loops between product engineering, customer success, and go-to-market teams. The company has implemented forward-deployed engineers to enhance product maturity by working closely with customers, differentiating between those in expansion phases and new customers benefiting from additional sales contributions.

The paragraph discusses a company's evolving customer needs and how it adapts its strategies to meet them. Customers are seeking improved pricing strategies, observability, and enhancement of their data estates, indicating the growing importance of data. The company is responding by implementing new features, establishing a testing center, and ensuring system reliability and auditability. Through collaboration with partners like Salesforce, Accenture, and Deloitte, they are deploying forward deployment teams to stay closely aligned with customer requirements. Despite being in the early stages, the company is committed to customer success by continuously releasing new product features and iterating on their offerings.

The paragraph discusses the rapid advancement of AI and AgentForce, noting that the progress in use cases and impact is remarkable, particularly when compared to just ninety days prior. Marc Benioff emphasizes that this growth isn't limited to the US but is a global phenomenon, providing an example of Fujitsu in Japan. He highlights the enthusiasm of Japanese companies for using AgentForce to create an "energetic layer" around their operations. The paragraph also references the long-standing focus on Customer 360, indicating successful deployment efforts.

The paragraph discusses the expansion of a business into three areas: customer business, Slack enterprise business, and data business. It highlights the integration of AI and data capabilities across these sectors to create powerful synergies. An example given is Smartsheet, a cloud-based Excel alternative with around 13 million users, where the integration of AI-driven Agent Force is enhancing customer support and license management. This development, which exceeds expectations, is noted for its rapid implementation across industries and geographies within just six months.

The paragraph discusses the company's rapid pace of technological innovation and its strategic plans for growth leading up to Dreamforce, which is six months away. While their products have evolved significantly, they've intentionally slowed distribution growth to focus on financial goals like margin and cash flow improvement. Now, they aim to balance growth in both revenue and financial metrics, investing heavily in rapidly expanding markets and regions like Japan, Latin America, and the U.S. tech industry. The company is committed to boosting its distribution capabilities where it hasn't yet, and it plans to do so aggressively.

In the paragraph, a company executive discusses their strategy to deliver strong financial results and growth by focusing on expanding markets, geography, segments, and technology capabilities. They highlight the past success of acquiring another company and express confidence in their approach. During a Q&A session, Kash Rangan from Goldman Sachs asks CEO Marc Benioff about the slower enterprise adoption of generative AI compared to consumer adoption, citing examples like Agentforce and chat systems with millions of users. Rangan seeks Marc's insights as a leader in the cloud industry and queries how enterprise adoption could be accelerated. Additionally, Rangan congratulates Robin on a new position and asks about the timeline for a deal's financial impact. Marc acknowledges the importance of the question and indicates willingness to address it again.

The paragraph discusses the current state and limitations of AI language models like ChatGPT, Gemini, and others. It highlights that these models, despite minor differences in innovation, are largely similar due to being trained on common datasets. Advances in algorithms and data lead to models that function like advanced search engines. However, despite expectations for rapid enterprise transformation, such as Microsoft's predictions with Copilot, significant improvements in model accuracy and practical enterprise applications have not yet fully materialized.

The paragraph discusses the controlled and secured nature of enterprise datasets, using Goldman Sachs as an example to illustrate that not all data is accessible to all employees due to regulations. It emphasizes the need for controlled access when using models to interact with data. The text highlights the potential for platforms like Agentic to provide customer-specific and employee-relevant information while acknowledging existing constraints in broader data access. It also mentions Salesforce's success in transforming customer support through digital labor, reducing human intervention in customer interactions significantly and achieving over a million conversations in a quarter.

The paragraph discusses Salesforce's approach to utilizing its own products, such as Agentforce and various clouds, to drive success and improve customer engagement. Unlike competitors like Microsoft, Salesforce claims to have a more effective strategy due to its integrated customer 360 platform. The author highlights the importance of building robust datasets for achieving this success and credits the acquisition of Informatica as vital for ensuring data harmonization and management. While Informatica is smaller and lacks Salesforce's distribution scale, the acquisition allows Salesforce to effectively promote and distribute their products globally.

The paragraph discusses the company's aim to expand its distribution organization by over 20% following a period of financial transformation. This growth aligns with ongoing technology and data transformations. The speaker emphasizes the need for governance, security, reliability, and availability, highlighting Salesforce's capabilities. They plan to deliver transformations through Slack, Tableau, and other products, integrating various layers like agendaic, data, app, and metadata, to transform businesses of all sizes.

In the paragraph, Marc Benioff responds to concerns about AI potentially eliminating many entry-level white-collar jobs and increasing unemployment. He acknowledges the issue but emphasizes that Salesforce believes in the division of digital labor. Benioff implies that while AI may shift job roles, there are opportunities for employees to be repositioned within the company, as Salesforce is actively hiring and looking to expand. He suggests that Salesforce can help companies navigate these changes while maintaining human oversight.

The speaker is discussing the challenges of growing their business due to a lack of available talent for hiring engineers and account executives. They reflect on the hype around AI advancements, referencing a book popular among Silicon Valley CEOs that envisions a future with self-replicating technologies. However, the speaker argues that while AI is exciting for enterprise use, it's not yet capable of achieving human consciousness or replacing all white-collar jobs because of its limitations in accuracy and reliance on word models.

The paragraph discusses the current state of AI, highlighting its capabilities and limitations. AI is considered a continuum, excelling in certain tasks but not universally reliable, which means human intervention is often necessary. It discusses how AI impacts white-collar jobs and everyday life, making people more informed, but still requiring professional verification, such as from doctors. The writer appreciates AI's potential, mentioning its integration into tools like Slack, but cautions against alarmist views, suggesting that AI is not yet at the point of being fully autonomous or infallible.

The speaker discusses the overhyped perception of a "copilot" tool and emphasizes the true transformative potential it has for enterprises. They highlight Tableau Next as an impressive example of innovation, now integrated with a data cloud and Slack, enhancing its capability. Though there is enthusiasm for future developments, the speaker notes they are not yet ready to implement actions suggested by Daria. The call concludes with gratitude expressed to participants.

This summary was generated with AI and may contain some inaccuracies.