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Salesforce: Salesforce's Q3 Earnings: A Strong Showing with AgentForce Momentum

Salesforce reported a robust fiscal 2026 third-quarter performance, with revenue reaching $10.26 billion, up 9% year over year. The non-GAAP operating margin expanded by 240 basis points to 35.5%, while the GAAP operating margin rose by 130 basis points. Earnings per share (EPS) came in at $3.25, beating estimates of $2.86. Operating cash flow was $2.3 billion, up 17%, and free cash flow was $2.2 billion, up 22%. The company's Current Remaining Performance Obligation (CRPO) stood at $29.4 billion, up 11%, and Remaining Performance Obligation (RPO) nearly reached $60 billion, growing 12% year over year.

CRM

USD 260.56

5.29%

A-Score: 5.0/10

Publication date: December 3, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue & Margin Growth: Q3 revenue hit $10.26B (+9% YoY), non-GAAP operating margin reached 35.5% (+240 bps YoY).
  • CRPO & RPO Expansion: CRPO grew to $29.4B (+11% YoY), RPO neared $60B (+12% YoY), signaling strong future revenue visibility.
  • AgentForce & Data Growth: ARR hit $1.4B (+114% YoY), with AgentForce ARR at $540M (+330% YoY), powered by 18,500 deals and 9,500 paid transactions (+50% QoQ).
  • Cash Flow Strength: Operating cash flow surged to $2.3B (+17% YoY), free cash flow rose to $2.2B (+22% YoY).
  • Strategic Execution: Informatica acquisition on track 3 months ahead of schedule; Data 360 ingested 32 trillion records (+119% YoY), driving AI infrastructure growth.

AgentForce and Data Revenue Growth

The company's AgentForce and Data revenue achieved significant growth, reaching nearly $1.4 billion in Annual Recurring Revenue (ARR), up 114% year over year. AgentForce ARR alone was about $540 million, up 330%. The company has closed over 18,500 AgentForce deals, with 9,500 paid transactions, representing a 50% quarter-over-quarter increase. This momentum is a testament to the growing adoption of Salesforce's AI-driven solutions.

Operational Highlights and Customer Adoption

Salesforce is seeing strong customer adoption across its products, with notable companies like Uber, Conagra, and General Motors utilizing its solutions. The acquisition of Informatica is proceeding well, ahead of schedule and under budget. Data 360 ingested 32 trillion records in Q3, up 119% year over year. The company's focus on becoming an "agentic enterprise" is driving growth across its various clouds, including Sales, Service, and Slack.

Guidance and Valuation

Salesforce guided fiscal year 2026 organic subscription and support revenue growth of approximately 9% year-over-year in constant currency. Including Informatica, revenue is expected to be $41.545 billion to $41.55 billion, representing approximately 9-10% growth in nominal and 9% in constant currency. With a P/E Ratio of 22.85 and an EV/EBITDA of 22.64, the market appears to be pricing in Salesforce's growth prospects. Analysts estimate next year's revenue growth at 8.7%, which is slightly below this year's expected growth rate.

Outlook and Conclusion

CEO Marc Benioff highlighted the company's focus on delivering accurate and reliable AI, driven by its data infrastructure. With significant growth in its data cloud and a strong pipeline of deals, Salesforce is well-positioned to drive future growth. The company's efforts to become an "agentic enterprise" are expected to continue driving momentum across its business. As Salesforce continues to invest in high-growth areas, its ability to deliver on its growth prospects will be crucial in justifying its current valuation multiples.

Salesforce's A-Score