Salesforce Shares Gain 2% on Q3 Earnings Beat and FY26 Guidance Raise

Core Insights - Salesforce, Inc. (CRM) shares increased by 2.1% after reporting better-than-expected earnings for Q3 fiscal 2026 and raising its full-year guidance [1][9] Financial Performance - Salesforce reported non-GAAP earnings of $3.25 per share, exceeding the Zacks Consensus Estimate by 14.04% and reflecting a year-over-year improvement of 34.9% [1][2] - Q3 fiscal 2026 revenues reached $10.3 billion, matching the Zacks Consensus Estimate and showing a 10% year-over-year increase [2][10] - Non-GAAP operating income was $3.64 billion, up 16.5% from the previous year, with an operating margin expansion of 240 basis points to 35.5% [6][12] Revenue Breakdown - Subscription and Support revenues, accounting for 95% of total revenues, increased by 9.5% year over year to $9.73 billion [3] - Professional Services and Other revenues declined by 5.7% to $533 million [3] - Revenues from the Americas grew by 8% to $6.7 billion, EMEA revenues increased by 7% to $2.5 billion, and Asia Pacific revenues rose by 11% to $1.1 billion [6] Segment Performance - Agentforce Sales revenues grew by 8.4% to $2.3 billion, while Agentforce Service revenues increased by 9% to $2.5 billion [5] - Agentforce 360 Platform, Slack and Other revenues rose by 19.5% to $2.18 billion, and Agentforce Integration and Analytics recorded a 6.1% increase to $1.39 billion [5] Guidance Update - Salesforce raised its revenue guidance for fiscal 2026 to a range of $41.45-$41.55 billion, reflecting a 9-10% year-over-year growth [9][10] - The company now expects non-GAAP earnings per share to be in the range of $11.75-$11.77, up from the previous forecast of $11.33-$11.37 [11] - For Q4 fiscal 2026, total sales are projected between $11.13 billion and $11.23 billion, indicating 11-12% growth from the previous year [13] Cash Flow and Shareholder Returns - Salesforce ended Q3 with cash, cash equivalents, and marketable securities totaling $11.32 billion, down from $15.37 billion in the previous quarter [7] - The company generated an operating cash flow of $2.3 billion and a free cash flow of $2.2 billion [7] - Salesforce returned $4.2 billion to shareholders, including $3.8 billion in share repurchases and $395 million in dividends [8]