CRM · 10-Q · 2026Q3 · Full report
Income Tax Rate Changes
Salesforce, Inc. · 2026-08-27 · Importance 63 · Surprise 64 · From source text
The income-tax provision increased to $1.026 billion in the second quarter from $519 million and to approximately $1.640 billion for the first six months from $952 million. Salesforce stated that effective tax rates increased year over year primarily because of stock-based compensation. The six-month effective tax-rate change reduced pretax-to-net-income conversion despite net income rising to $5.633 billion from $3.428 billion. Future tax rates may vary with domestic and foreign earnings, discrete tax items, acquisitions, and operating-structure changes.
Key facts
- We recorded a tax provision of $1.0 billion and $519 million for the three months ended July 31, 2026 and 2025, respectively, and a tax provision of approximately $1.6 billion and $952 million for the six months ended July 31, 2026 and 2025, respectively. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -4.2% | We recorded a tax provision of $1.0 billion and $519 million for the three months ended July 31, 2026 and 2025, respectively, and a tax… |