salesforce(US:CRM) CNBC·2025-12-05 18:31Core Insights - Salesforce shares increased by 5% following better-than-expected Q3 earnings, with adjusted earnings per share at $3.25, surpassing estimates of $2.86, while revenue grew 8.6% year-over-year to $10.26 billion, slightly missing projections of $10.27 billion [1] - The company aims to demonstrate that AI will enhance its products rather than threaten the industry, countering investor concerns about AI rendering cloud software firms obsolete [2] - Salesforce's year-to-date share performance is down 21%, contrasting with a 22% gain in the Nasdaq, but analysts express optimism for growth by 2026 [3] Financial Performance - Adjusted earnings per share for Q3 were reported at $3.25, exceeding Wall Street's expectations [1] - Revenue for the quarter was $10.26 billion, reflecting an 8.6% increase year-over-year, but just below analyst expectations [1] AI and Product Development - Salesforce acquired AI startups Regrello and Waii during Q3, which focus on generating code through natural language instructions [3] - The company's AI platform, Agentforce, has seen a significant annual recurring revenue increase of 330% year-over-year, reaching $540 million [5] - CEO Marc Benioff emphasized that Agentforce integrates humans, data, AI, and applications to enhance business experiences [6] Market Outlook - Analysts from Mizuho expect Salesforce to maintain solid growth rates and fiscal discipline, with potential for higher operating and free cash flow margins [4] - Cantor analysts noted strong adoption of Agentforce in customer service, indicating a maturing strategy that could facilitate customer understanding and adoption [5]