Salesforce 2026 Q3 Earnings Strong Earnings as Net Income Surges 36.6%

Salesforce (CRM) reported fiscal 2026 Q3 earnings on Dec 3, 2025, with results exceeding revenue estimates and raising full-year guidance. The company raised its revenue forecast to $41.45B–$41.55B, reflecting strong demand for AI-driven solutions like Agentforce. CEO Marc Benioff highlighted 330% YoY growth in Agentforce ARR and strategic acquisitions such as Informatica, while CFO Robin Washington outlined robust cash flow and capital allocation plans.

Revenue

Salesforce’s total revenue rose 8.6% year-over-year to $10.26 billion, driven by subscription and support revenue of $9.73 billion, which accounted for 94.8% of total revenue. Professional services and other segments contributed $533 million, completing the $10.26 billion total. Subscription growth was fueled by Agentforce’s $540 million ARR and 3.2 trillion tokens processed, underscoring AI-driven momentum.

Earnings/Net Income

Earnings per share (EPS) surged 37.5% to $2.20, outpacing the prior year’s $1.60. Net income hit $2.09 billion, a 36.6% increase from $1.53 billion, marking a record high for Q3 in over two decades. The EPS growth was robust, with net income reaching a 20-year high and reflecting the company’s strengthened profitability.

Post-Earnings Price Action Review

The strategy of buying Salesforce shares 30 days after its quarterly earnings release and holding for an additional 30 days delivered moderate returns but underperformed the market. The strategy’s CAGR was 1.86%, trailing the benchmark by 71.58 percentage points. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.09, the strategy indicated low risk but modest returns.

CEO Commentary

Marc Benioff emphasized Salesforce’s 9% YoY revenue growth and 35.5% non-GAAP operating margin, attributing success to Agentforce’s ARR expansion and strategic acquisitions like Informatica. He highlighted investments in Slackbot integration and AI-driven productivity, expressing optimism about the “agentic enterprise” shift and fiscal 2027 growth prospects.

Guidance

Robin Washington revised FY2026 guidance to $41.45B–$41.55B in revenue, with organic subscription growth of ~9% and 80 bps from Informatica. Operating cash flow growth was raised to 13–14%, and free cash flow aligned with this. CRPO growth is expected at 11% YoY organically, 15% with Informatica, supported by $4 billion in shareholder returns and a 50% share repurchase increase in H2 FY2026.

Additional News

Salesforce expanded its AI capabilities through a partnership with Amazon Web Services to launch Agentforce 360, leveraging AWS’s infrastructure and Amazon Bedrock models. The company also raised its fiscal 2026 revenue forecast due to strong enterprise demand for AI agents. Strategic acquisitions, including Informatica, bolstered data and AI leadership, while CFO Robin Washington announced a $4 billion capital allocation plan, including increased share repurchases in the second half of FY2026.