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

Salesforce (CRM) reported robust fiscal 2026 Q3 results, exceeding expectations with a 37.5% year-over-year increase in EPS and a 36.6% rise in net income. The company raised its FY26 revenue guidance, signaling confidence in sustained momentum.

Revenue

Salesforce’s total revenue climbed 8.6% year-over-year to $10.26 billion in Q3 2026. Subscription and support revenue reached $9.73 billion, forming the backbone of the company’s growth, while professional services and other segments contributed $533 million. This performance reflects strong demand for Salesforce’s AI-driven solutions and expanded enterprise cloud adoption.

Earnings/Net Income

The company’s non-GAAP EPS surged 37.5% to $2.20, driven by operational efficiency and margin expansion. Net income hit a record $2.09 billion, a 36.6% increase from $1.53 billion in the prior year. The significant EPS and net income growth underscores Salesforce’s strong earnings performance and profitability expansion.

Price Action

CRM’s stock edged up 1.55% in the latest trading day, gained 8.46% over the past week, but declined 5.31% month-to-date, reflecting mixed investor sentiment ahead of the earnings report.

Post-Earnings Price Action Review

The strategy of buying CRM when revenue beats and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 56.21% return, while the benchmark returned 138.23%. The Sharpe ratio was 0.22, indicating a reasonable risk-adjusted return. However, the maximum drawdown was 0.00%, suggesting the strategy had no risk, which may not be ideal for risk-averse investors.

CEO Commentary

Marc Benioff highlighted Salesforce’s Q3 success, driven by Agentforce’s 330% YoY ARR growth and strategic acquisitions like Informatica. He emphasized AI integration, customer adoption of tools like Slackbot, and plans to expand enterprise cloud usage. Benioff expressed optimism about the “agentic enterprise” trend, noting 70% QoQ growth in Agentforce production users.

Guidance

Robin Washington, CFO, raised FY26 revenue guidance to $41.15B–$41.25B, with organic growth of ~9%. Subscription and support revenue growth is targeted at ~9%, while operating cash flow growth is projected at 13–14%. The company anticipates reaccelerating revenue in 12–18 months, maintaining non-GAAP operating margins at 34.1%.

Additional News

Salesforce partnered with AstraZeneca to leverage AI for healthcare engagement, enhancing personalized strategies for professionals. The collaboration aims to streamline outreach in oncology and other fields. Additionally, Salesforce launched Agentforce 360 in partnership with AWS, integrating Amazon Bedrock models to boost AI capabilities. Evercore ISI reaffirmed an “Outperform” rating, adjusting the price target to $340 amid strong AI adoption metrics.