Salesforce Surpasses Q3 Earnings Expectations, Driven by AI Growth
San Francisco, Thursday, 4 December 2025.
Salesforce exceeded Wall Street expectations with Q3 2026 earnings, fueled by Agentforce AI’s $500 million annual revenue, positioning the company strongly for continued growth.
Impressive Financial Results
Salesforce (CRM) has reported its Q3 2026 earnings, showing a robust performance that exceeds Wall Street forecasts. The company’s revenue for the quarter reached $10.3 billion, marking a 9% increase year-over-year [1][2]. Additionally, Salesforce’s earnings per share (EPS) was $2.19, reflecting a 38.61% increase from the previous year, although slightly below the consensus estimate of $2.89 [3]. This impressive growth was largely driven by the significant success of its Agentforce AI division, which alone generated over $500 million in annualized revenue [1].
Agentforce AI: A Catalyst for Growth
Agentforce AI has emerged as a pivotal component of Salesforce’s growth strategy, contributing significantly to the company’s recent financial success. The division’s annual recurring revenue (ARR) has reached nearly $1.4 billion, growing over 100% year-over-year [2][4]. This highlights Salesforce’s strategic focus on artificial intelligence and its potential to drive future revenue streams. The company’s current remaining performance obligation (RPO) also rose 11% year-over-year to approximately $29.4 billion, underscoring a strong pipeline of future business [2].
Strategic Acquisitions and Future Projections
In addition to its organic growth, Salesforce has made strategic acquisitions, including the purchase of startups Regrello and Waii during the fiscal third quarter of 2025. These acquisitions are expected to bolster Salesforce’s capabilities in AI and data analytics [1]. Looking ahead, Salesforce has raised its full-year fiscal 2026 revenue guidance to between $41.45 billion and $41.55 billion, an increase of 9-10% compared to the previous year [2][5]. The company’s long-term goal remains to achieve over $60 billion in revenue by fiscal 2030, driven by continued innovation and expansion in AI technologies [4].
Market Reaction and Stock Performance
Despite its financial achievements, Salesforce’s stock has experienced a decline of 29% year-to-date, underperforming the broader tech sector [3][5]. However, the company’s strong Q3 results and positive revenue guidance have the potential to restore investor confidence. Analysts from Deutsche Bank and other firms have expressed optimism, suggesting that Salesforce’s stock is undervalued amidst excessive negative sentiment in recent quarters [5]. As traders anticipate significant price movements following the earnings report, the options market suggests Salesforce’s stock could move up to 7% in either direction by the end of the week [3].