Salesforce 2026 Q3 Earnings Record Net Income Surges 36.6%

Salesforce (CRM) reported fiscal 2026 Q3 earnings on Dec 3, 2025, exceeding expectations with robust revenue growth and a record net income. The company raised full-year guidance, reflecting strong demand for its AI-driven solutions.

Revenue

Salesforce’s total revenue grew 8.6% year-over-year to $10.26 billion, aligning with estimates. Subscription and support revenue, the company’s core segment, reached $9.73 billion, while professional services and other revenue contributed $533 million. This performance underscores the resilience of its recurring revenue model and expanding AI adoption.

Earnings/Net Income

Earnings per share (EPS) surged 37.5% to $2.20, outpacing 2025 Q3’s $1.60. Net income hit a record $2.09 billion, a 36.6% increase from $1.53 billion. The company’s profitability milestones highlight its operational efficiency and strategic focus on high-margin AI products. The EPS growth reflects strong execution and underscores Salesforce’s ability to monetize its AI innovations.

Post-Earnings Price Action Review

The stock price edged up 1.43% in the latest trading day and 1.96% for the week but declined 8.33% month-to-date. A 30-day post-earnings buy-and-hold strategy yielded a CAGR of 1.86%, underperforming the market by 71.58 percentage points. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.09 indicating low risk, the strategy’s modest returns suggest limited post-earnings momentum.

CEO Commentary

CEO Marc Benioff emphasized Salesforce’s AI-driven growth, noting Agentforce’s 3.2 trillion tokens processed and 330% ARR growth. He highlighted strategic priorities: scaling Agentforce, enhancing data leadership via Informatica and MuleSoft, and leveraging AI for enterprise-scale adoption. Benioff expressed confidence in customer demand for AI workflows, with 70% QoQ growth in Agentforce production use and 50% of new bookings from existing clients.

Guidance

CFO Robin Washington guided FY2026 revenue to $41.45–41.55 billion, up from prior estimates, with 9–10% nominal growth. Organic subscription revenue is projected at ~9%, supported by 80 bps from Informatica. Operating cash flow growth of 13–14% and free cash flow alignment with operating cash flow were also outlined. Non-GAAP operating margins will remain at 34.1%, while AI and Agentforce expansion are expected to drive FY2027 growth.

Additional News

Salesforce raised its full-year revenue forecast to $41.45–41.55 billion, citing strong enterprise demand for Agentforce and data products. The stock surged 4% in after-hours trading after beating EPS estimates of $2.86 with $3.25. Additionally, the company announced a 114% year-over-year increase in ARR for Agentforce and Data 360, reaching $1.4 billion, driven by 9,500 paid deals and 3.2 trillion tokens processed. These developments underscore Salesforce’s leadership in AI integration and enterprise adoption.