Group 1 - Salesforce reported Q3 revenue of $10.26 billion, slightly below analyst expectations of $10.28 billion [1] - The company revised its full-year revenue forecast to $41.45 billion to $41.55 billion, up from the previous estimate of $41.1 billion to $41.3 billion [1]

Salesforce gave an outlook for revenue in the current period that topped analysts’ estimates, suggesting the software company is persuading customers to buy its AI tools. https://t.co/Iiqjhn5Rmz ...

Core Insights - Salesforce reported better-than-expected earnings and revenue guidance for the fourth quarter, leading to a rise in stock price during extended trading [1][2] - The company experienced an 8.6% revenue increase year-over-year in the fiscal third quarter, with net income rising to $2.09 billion from $1.53 billion [1] - For the fiscal fourth quarter, Salesforce anticipates adjusted earnings per share between $3.02 and $3.04, with revenue projected between $11.13 billion and $11.23 billion, indicating a growth rate of 11% to 12% [2] Financial Performance - In the fiscal third quarter, Salesforce's revenue was $10.26 billion, slightly below the expected $10.27 billion, while adjusted earnings per share were $3.25, exceeding the expected $2.86 [6] - The net income for the third quarter was $2.09 billion, or $2.19 per share, boosted by a $263 million gain from strategic investments [1] - Annualized revenue from the newly introduced Agentforce AI software surged 330% year-over-year, exceeding $500 million [5] Strategic Moves - Salesforce made strategic acquisitions of AI startups Regrello and Waii during the fiscal third quarter, enhancing its AI capabilities [4] - The company launched Agentforce AI software aimed at automating IT service requests and set a fiscal 2030 revenue target of $60 billion, surpassing analyst expectations [4] Market Context - Salesforce's stock has underperformed compared to the broader tech sector, down 29% in 2025, while the Nasdaq has gained approximately 21% [3] - Concerns regarding the impact of artificial intelligence on Salesforce's product capabilities have contributed to the stock's underperformance [3]

Core Viewpoint - Salesforce has raised its fiscal 2026 revenue forecast, driven by strong enterprise demand for its artificial intelligence agent platform [1] Group 1 - The company anticipates growth from its artificial intelligence agent platform [1] - Strong enterprise demand is a key factor in the revenue forecast increase [1]

By Zaheer Kachwala Dec 3 (Reuters) - Salesforce raised its fiscal 2026 revenue and adjusted profit forecasts on Wednesday, anticipating growth in its artificial ​intelligence agent platform due to strong enterprise demand, sending its shares ‌up more than 2% in extended trading. The forecast signals that monetization for the company's Agentforce platform ‌is picking up pace as enterprises gravitate towards autonomous AI to streamline and automate repetitive and administrative tasks. "Our Agentforce and ...

Revenue Guidance and Performance - Salesforce raised its fiscal year 2026 revenue guidance to between $41.45 billion and $41.55 billion, reflecting a year-over-year growth of 9% to 10%[3] - Q4 FY26 guidance includes expected revenue of $11.13 billion to $11.23 billion, with a growth rate of 11% to 12% year-over-year[7] - Total revenues for the three months ended October 31, 2025, were $10,259 million, a 9% increase from $9,444 million in the same period of 2024[21] - Total revenues for Q3 2025 reached $10,259 million, a 8.6% increase from $9,444 million in Q3 2024[32] - Constant currency growth for total revenue was 8% for the three months ended October 31, 2025, compared to the same period in 2024[31] Subscription and Support Revenue - Third quarter subscription and support revenue was $9.7 billion, an increase of 10% year-over-year, and total revenue for the quarter was $10.3 billion, up 9% year-over-year[5] - Subscription and support revenues accounted for 95% of total revenues for both the three and nine months ended October 31, 2025[23] - Subscription and support revenue for the three months ended October 31, 2025, was $9,726 million, compared to $8,879 million in 2024, marking a 9% growth[29] Performance Obligations - Current remaining performance obligation (cRPO) reached $29.4 billion, up 11% year-over-year, while total remaining performance obligation (RPO) climbed to $59.5 billion, up 12% year-over-year[5] - Remaining performance obligation (RPO) as of October 31, 2025, totaled $59.5 billion, compared to $53.1 billion as of October 31, 2024, indicating a 12% year-over-year growth[27] - Unearned revenue at the end of the period was $14,996 million, up from $13,472 million in the same period last year, showing an increase of 11%[28] Profitability and Cash Flow - Operating cash flow for the third quarter was $2.3 billion, reflecting a 17% year-over-year increase, while free cash flow was $2.2 billion, up 22% year-over-year[5] - Net income for the three months ended October 31, 2025, was $2,086 million, compared to $1,527 million for the same period in 2024, reflecting a 37% increase[21] - Basic net income per share for the three months ended October 31, 2025, was $2.20, up from $1.60 in the same period of 2024[21] - Free cash flow for Q3 2025 was $2,177 million, up from $1,779 million in Q3 2024, indicating a 22.4% increase[36] - GAAP net income for the nine months ended October 31, 2025, was $5,514 million, up from $4,489 million in the same period of 2024, a 22.9% increase[35] Shareholder Returns - Salesforce returned $4.2 billion to shareholders in the form of share repurchases and dividends, including $3.8 billion in share repurchases[5] - The company repurchased $3,801 million of common stock during the three months ended October 31, 2025[25] Strategic Developments - Informatica acquisition completed, enhancing Salesforce's data management capabilities and contributing approximately 80 basis points to revenue growth guidance[6] - The company aims to expand internationally and enhance its business strategy despite uncertainties in market competition and geopolitical events[20] Expenses and Liabilities - The company reported a restructuring expense of $260 million for the three months ended October 31, 2025, compared to $56 million in the same period of 2024[21] - Total current assets decreased to $21,063 million as of October 31, 2025, from $29,727 million as of January 31, 2025[24] - Total liabilities decreased to $35,123 million as of October 31, 2025, from $41,755 million as of January 31, 2025[24] Capital Expenditures and Investments - Strategic investments increased to $6,410 million as of October 31, 2025, from $4,852 million as of January 31, 2025[24] - Capital expenditures for the nine months ended October 31, 2025, totaled $453 million, compared to $504 million in the same period of 2024[36] Operating Margins - Full year FY26 GAAP operating margin guidance is set at 20.3%, while non-GAAP operating margin guidance remains at 34.1%[8] - GAAP operating margin for Q3 2025 was 21.3%, an increase from 20.0% in Q3 2024[32] - Non-GAAP operating margin for Q3 2025 was 35.5%, compared to 33.1% in Q3 2024, showing an improvement of 2.4 percentage points[32] Tax and Other Financial Metrics - The projected non-GAAP tax rate for fiscal 2025 and 2026 is set at 22.0%[41] - The Company presents constant currency revenue growth rates to assess underlying business performance excluding foreign currency fluctuations[42] - Free cash flow is defined as GAAP net cash provided by operating activities minus capital expenditures[43] - Annual recurring revenue (ARR) for Agentforce and Data 360 includes the annualized recurring value of active subscription agreements at the end of the reporting period[43]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Insights - Salesforce is expected to report rising revenue and profits in its upcoming quarterly earnings report [1] - Analysts predict a potential stock movement of up to 7% in either direction by the end of the week [1] Financial Performance - Projected adjusted earnings per share for Salesforce are $2.86, with a 9% year-over-year revenue increase to $10.28 billion for the third quarter [1] - The stock is currently around $235, with potential high and low targets of $251 and $218, respectively [1] Market Sentiment - Deutsche Bank analysts anticipate Salesforce will exceed estimates and raise its outlook, indicating the stock is undervalued due to "excessive negative sentiment" in recent quarters [1] - Despite a nearly 30% decline in stock value in 2025, the majority of analysts remain bullish, with 14 out of 18 recommending a "buy" [1] - The mean target price for Salesforce is approximately $310, suggesting a potential upside of around 32% from the recent close [1]

First, we're going to kick things off with a big committee move. This is Brin throwing in the towel, so to speak, on Salesforce ahead of the earnings report after the closing bell today. You're not even going to wait to see what happens, Bren.Why are you getting out. >> Yeah. Well, so I mentioned this on Monday.I've been in this stock for a minute, probably a quarter and a half. And I feel like when the market goes up, it doesn't go up. When the market goes down, it goes down slightly.I feel they're going t ...

Core Viewpoint - The discussion revolves around the performance and outlook of Salesforce and other software stocks, highlighting concerns about their stock prices not reflecting operational results and the impact of market sentiment on investment decisions. Group 1: Salesforce Performance - Salesforce is perceived to be "stuck in the mud," with a lack of upward movement in stock price despite expectations of solid earnings and free cash flow [2][3][12] - There is a sentiment that the stock may not respond positively to earnings due to a prevailing trend of negative market feedback on stocks that report good numbers [3][4] - The disconnect between operational results and stock price is noted, with more sellers than buyers in the market for Salesforce [7][8] Group 2: Broader Software Industry Trends - The software sector, including Salesforce and Adobe, is facing challenges with stock performance, as evidenced by the IGV index being flat over the past 52 weeks, while the SMH index has risen approximately 45% [15][16] - Concerns about software valuations reaching extremes and potential restrictions on technology exports are affecting investor sentiment in the software space [16][17] - The discussion highlights the existential threat posed by artificial intelligence to software companies, although current results have not yet reflected significant negative impacts [8][9] Group 3: Comparisons with Other Companies - Snowflake is highlighted as a company with strong growth potential, projecting product revenue growth of 29-30% and improving operating margins, which may differentiate it from Salesforce and Adobe [18][20] - Adobe is mentioned as having a better growth rate and being cheaper than Salesforce, with a projected growth rate of 14% and a clean balance sheet [24]