salesforce(US:CRM) The Motley Fool·2025-12-08 16:00Core Insights - Salesforce reported strong fiscal 2026 third-quarter results, driven by its AI platform Agentforce, which significantly contributed to revenue growth [2][10] - Despite the positive results, Salesforce's stock has decreased by 25% this year due to investor concerns regarding the impact of AI on SaaS companies [2][12] Financial Performance - Salesforce's revenue increased by 9% year over year to $10.26 billion, slightly missing the consensus estimate of $10.27 billion [6] - Subscription and support revenue rose by 10% to $9.73 billion [6] - Adjusted earnings per share (EPS) surged 35% to $3.25, exceeding the consensus estimate of $2.86 [10] Growth Drivers - Agentforce's annual recurring revenue (ARR) grew 330% to $540 million, with 9,500 paid deals, a 50% increase from the previous quarter [4][5] - Data 360 also contributed to growth, with its records processed more than doubling in the quarter, leading to a combined ARR of $1.4 billion for Agentforce and Data 360, a 114% year-over-year increase [5] Future Guidance - Salesforce raised its full-year revenue guidance to $41.45 to $41.55 billion, with projected revenue growth of 9% to 10% [10] - For fiscal Q4, the company expects revenue to increase by 11% to 12%, projecting adjusted EPS between $3.02 and $3.04 [10] Valuation Metrics - Salesforce is currently trading at a forward price-to-sales multiple of 5.3 and a forward price-to-earnings (P/E) ratio of 19.5, with a price/earnings-to-growth (PEG) ratio below 0.55, indicating potential undervaluation [11]