Salesforce Reports Strong Q3 Results
Salesforce (NYSE: CRM) has reported its Q3 FY26 results, showcasing strong fundamentals despite the stock trading near three-year lows. The company achieved a revenue of $10.26 billion, aligning closely with expectations, and a non-GAAP earnings per share (EPS) of $3.25, surpassing the consensus estimate of $2.86 by 13.6%.
Salesforce’s annual recurring revenue (ARR) from its Agentforce segment reached $540 million, reflecting a remarkable 330% year-over-year growth with 18,500 deals closed in the third quarter.
Why It Matters
Despite the robust financial performance, Salesforce shares experienced a 5% decline in extended trading following the earnings report. The company raised its full-year revenue guidance to between $41.45 billion and $41.55 billion, indicating management’s confidence in future revenue streams. However, the fiscal 2027 revenue outlook fell short of Wall Street projections, contributing to investor concerns.
Salesforce’s net income for the quarter was reported at $1.94 billion, or $2.07 per share, up from $1.71 billion, or $1.75 per share, in the previous year. The current remaining performance obligation, which includes contracted but unrecognized revenue, stood at $35.1 billion, exceeding analyst expectations.
What’s Next
Looking ahead, Salesforce is set to report its Q4 FY26 results, with analysts estimating an adjusted EPS of $3.05 and revenue of $11.19 billion. The company has also announced a $50 billion share buyback program, as CEO Marc Benioff noted that current stock prices are low.
Investors are advised to monitor trends in AI demand, particularly related to the Agentforce segment, as the company navigates through a challenging market environment. Options trading indicates potential volatility, with shares expected to fluctuate by approximately 9% following the upcoming earnings report.
