Salesforce exceeded expectations with its third-quarter results and raised its revenue forecast for the fourth quarter, sending shares up 2% in after-hours trading. The company reported adjusted earnings per share of $3.25, beating the predicted $2.86, while revenue stood at $10.26 billion, just shy of the $10.27 billion forecast.
Revenue grew 8.6% year-on-year to $10.26 billion for the quarter ending October 31, with net income rising to $2.09 billion, or $2.19 per share, boosted by a $263 million gain from strategic investments. As CFO Robin Washington explained, Tableau’s cloud services delivered higher than expected revenue, with some on-premises product sales recognised immediately rather than over time.
For the fiscal fourth quarter, Salesforce expects adjusted earnings of $3.02 to $3.04 per share and revenue between $11.13 billion and $11.23 billion, surpassing analyst estimates. This growth includes a notable contribution from Informatica, acquired last month for nearly $8 billion, and reflects continued cloud migration within MuleSoft and Tableau, despite softness in marketing and commerce sectors.
Salesforce shares have fallen nearly 30% this year amid investor concerns over AI’s impact on its products, contrasting with a 21% gain in the Nasdaq. The company expanded its AI capabilities by acquiring startups Regrello and Waii and launching Agentforce, an AI platform automating IT service and customer workflows. Agentforce annualised revenue jumped 330% to over $500 million, with more than 9,500 paid contracts.
Free cash flow rose 22% to $2.18 billion, slightly below forecasts. Salesforce also set a bold 2030 revenue target of $60 billion, underscoring its focus on cloud innovation and AI-driven growth.