Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Salesforce Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Jan 31, 2026	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Net income	7,457)	6,197)	4,136)	208)	1,444)	4,072)
Depreciation and amortization	3,631)	3,477)	3,959)	3,786)	3,298)	2,846)
Amortization of costs capitalized to obtain revenue contracts, net	2,197)	2,095)	1,925)	1,668)	1,348)	1,058)
Stock-based compensation expense	3,509)	3,183)	2,787)	3,279)	2,779)	2,190)
(Gains) losses on strategic investments, net	(1,017)	121)	277)	239)	(1,211)	(2,170)
Tax benefit from intra-entity transfer of intangible property	—)	—)	—)	—)	—)	(2,003)
Accounts receivable, net	(2,160)	(490)	(659)	(995)	(1,824)	(1,556)
Costs capitalized to obtain revenue contracts, net	(2,811)	(2,121)	(1,872)	(2,345)	(2,283)	(1,645)
Prepaid expenses and other current assets and other assets	819)	(1,495)	(843)	(302)	114)	(133)
Accounts payable and accrued expenses and other liabilities	1,014)	1,089)	(478)	528)	507)	1,100)
Operating lease liabilities	(567)	(548)	(621)	(699)	(801)	(830)
Unearned revenue	2,924)	1,584)	1,623)	1,744)	2,629)	1,872)
Changes in assets and liabilities, net of business combinations	(781)	(1,981)	(2,850)	(2,069)	(1,658)	(1,192)
Adjustments to reconcile net income to net cash provided by operating activities	7,539)	6,895)	6,098)	6,903)	4,556)	729)
Net cash provided by operating activities	14,996)	13,092)	10,234)	7,111)	6,000)	4,801)
Business combinations, net of cash acquired	(9,268)	(2,734)	(82)	(439)	(14,876)	(1,281)
Purchases of strategic investments	(1,958)	(539)	(496)	(550)	(1,718)	(1,069)
Sales of strategic investments	184)	126)	108)	355)	2,201)	1,051)
Purchases of marketable securities	(3,763)	(6,879)	(3,761)	(4,777)	(5,674)	(4,833)
Sales of marketable securities	4,414)	4,143)	1,511)	1,771)	4,179)	1,836)
Maturities of marketable securities	2,395)	3,378)	2,129)	2,449)	2,069)	1,035)
Capital expenditures	(594)	(658)	(736)	(798)	(717)	(710)
Net cash used in investing activities	(8,590)	(3,163)	(1,327)	(1,989)	(14,536)	(3,971)
Proceeds from issuance of debt, net of issuance costs	6,000)	—)	—)	—)	7,906)	(20)
Repayments of Slack Convertible Notes, net of capped call proceeds	—)	—)	—)	—)	(1,197)	—)
Repurchases of common stock	(12,596)	(7,829)	(7,620)	(4,000)	—)	—)
Payments for taxes related to net share settlement of equity awards	(351)	—)	—)	—)	—)	—)
Proceeds from employee stock plans	1,039)	1,540)	1,954)	861)	1,289)	1,321)
Principal payments on financing obligations	(584)	(603)	(629)	(419)	(156)	(103)
Repayments of debt	—)	(1,000)	(1,182)	(4)	(4)	(4)
Payments of dividends and dividend equivalents	(1,587)	(1,537)	—)	—)	—)	—)
Net cash provided by (used in) financing activities	(8,079)	(9,429)	(7,477)	(3,562)	7,838)	1,194)
Effect of exchange rate changes	152)	(124)	26)	(8)	(33)	26)
Net increase (decrease) in cash and cash equivalents	(1,521)	376)	1,456)	1,552)	(731)	2,050)
Cash and cash equivalents, beginning of period	8,848)	8,472)	7,016)	5,464)	6,195)	4,145)
Cash and cash equivalents, end of period	7,327)	8,848)	8,472)	7,016)	5,464)	6,195)

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31).

The cash flow statement reveals a dynamic pattern of cash generation and utilization over the six-year period. Operating activities demonstrate a consistent strengthening contribution to overall cash flow, while investing and financing activities exhibit more pronounced fluctuations. Overall, the company transitions from net cash increases to a net cash decrease in the final year of the observed period.

Operating Activities: Net cash provided by operating activities shows a substantial and consistent upward trend, increasing from US$4.801 billion in 2021 to US$14.996 billion in 2026. This growth is largely driven by increasing net income, particularly in the later years, and is supported by significant non-cash adjustments, including depreciation, amortization, stock-based compensation, and adjustments related to revenue contracts. While adjustments to reconcile net income to net cash fluctuate, they consistently contribute positively to the overall operating cash flow. Changes in assets and liabilities initially represent a cash outflow, but this outflow diminishes over time.
Investing Activities: Net cash used in investing activities is consistently negative, indicating ongoing investments. However, the magnitude of this cash outflow varies considerably. 2022 shows a particularly large outflow driven by significant purchases of strategic and marketable securities. While purchases of both types of securities remain substantial throughout the period, sales provide partial offsets. Capital expenditures remain relatively stable, representing a consistent drain on cash. The year 2026 shows a reduced outflow compared to 2022, but remains significant.
Financing Activities: Net cash flow from financing activities is highly variable. 2021 and 2022 demonstrate positive cash flow, largely due to proceeds from debt issuance and employee stock plans. However, subsequent years show predominantly negative cash flow, driven by substantial repurchases of common stock, repayments of debt, and, in later years, dividend payments. Slack Convertible Note repayments also contribute to negative cash flow in 2022. The increasing scale of common stock repurchases is a notable trend, becoming the dominant factor in financing cash flow by 2025 and 2026.
Overall Cash Position: The net increase or decrease in cash and cash equivalents reflects the combined effect of operating, investing, and financing activities. The company experienced net cash increases in 2021, 2023, and 2024. However, 2022, 2025, and 2026 show net cash decreases, with 2026 experiencing the largest decrease at US$-1.521 billion. Despite these decreases, the company maintains a substantial cash balance, decreasing from US$8.848 billion in 2025 to US$7.327 billion in 2026.
Strategic Investments & Marketable Securities: Activity related to strategic investments and marketable securities significantly impacts cash flow. While sales provide inflows, purchases consistently represent substantial outflows. The net effect is a considerable use of cash in these areas, particularly in 2022. Gains or losses on strategic investments also introduce volatility, with a notable loss in 2026.

In summary, the company demonstrates strong and growing cash generation from core operations. However, this is offset by significant investments and, increasingly, shareholder returns through stock repurchases and dividend payments. The shift towards negative net cash flow in the final year suggests a strategic prioritization of returning capital to shareholders, potentially at the expense of cash accumulation.

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Salesforce Inc. (NYSE:CRM)

Cash Flow Statement