Salesforce: Contracted Revenue

Metric

RPO · Whole company

Contracted balance

$66.3B, +11% year over year

Denominator

Fiscal 2026 revenue of $41.5bn for the year ended January 31, 2026, plus revenue of $22,478m for the six months ended July 31, 2026, less revenue of $20,065m for the six months ended July 31, 2025. Both half-year figures are from the condensed consolidated statements of operations in the Q2 fiscal 2027 filing.

Coverage

1.51x (scopes match)

Duration

No weighted average duration. The 10-Q splits the balance into $33.5bn current and $32.8bn noncurrent, which puts 51% inside twelve months, and says the majority of the noncurrent half is expected to be recognized in months 13 to 36. That is the shortest published schedule of any row in this table: Salesforce collects almost all of what it signs within three years, where Oracle expects about half of its balance to take longer than that.

Notes

Coverage of 1.5x, the thinnest in the table, and it thinned again this quarter. The balance fell from $67.9bn at April 30 and from $72.4bn at January 31 while revenue kept growing, which is the shape Salesforce's own filing warns about: its fourth quarter is by far its largest for new business and renewals, so RPO peaks at the fiscal year end and drains through the middle of the year. Read the year-over-year growth rather than the sequential move. On that basis RPO grew 11% and cRPO 14% against revenue growth of 11%, so the backlog is now growing at about the speed of the business rather than ahead of it. This row is the floor of the range and the reason the range is useful: 1.5x is what a large software company looks like when it is collecting most of what it signs.

Sources: company filing or release · company filing or release · company filing or release

Metric

RPO · Whole company

Contracted balance

$67.9B, +11% year over year

Denominator

Fiscal 2026 revenue of $41.5bn for the year ended January 31, 2026, plus first quarter fiscal 2027 revenue of $11.1bn, less first quarter fiscal 2026 revenue of $9.8bn.

Coverage

1.59x (scopes match)

Duration

No weighted average duration, but cRPO of $33.6bn against total RPO of $67.9bn puts 49% of the balance inside twelve months. Salesforce guides on cRPO rather than RPO, which is the honest way round: the near-term half is the half that is really contracted at a known price.

Notes

The maturity case. Salesforce has the second largest software backlog here in absolute terms and the second thinnest coverage at 1.6x, because a $42.8bn revenue base is already collecting most of what it signs. RPO grew 11% and cRPO 14%, both slower than revenue growth of 13% including the Informatica contribution, which is what a backlog looks like when it stops outrunning the business. Useful as the floor of the range: 1.6x is not weak demand, it is what normal looks like.

Sources: company filing or release · company filing or release