Salesforce CRM Q3 2025 Earnings Report
Salesforce hit the headlines on Tuesday with a terrific 9% jump in shares following the release of their fiscal third-quarter earnings report that delivered better-than-expected revenue and fiscal fourth-quarter guidance. Let’s break down their performance and predict how things might shape up moving forward in simple terms.
Compared to the $2.44 per share that analysts were expecting, Salesforce managed to land at $2.41 adjusted earnings per share. The revenue figures also tipped in their favor, coming in at $9.44 billion against an expected $9.34 billion.
During the fiscal third quarter ending on October 31, sales saw an 8% year-over-year increase, with net income for the quarter landing at $1.5 billion, a solid 25% climb from the previous year’s $1.2 billion.
Looking forward, Salesforce is eyeing sales ranging between $9.90 billion and $10.10 billion for the fiscal fourth quarter. While analysts had set their sights on $10.05 billion, the tech giant is expecting to earn between $2.57 and $2.62 per share in the upcoming quarter, slightly under the projected $2.65 per share from analysts.
Salesforce has also upped the ante for its fiscal 2025 revenue forecast, with expectations now set between $37.8 billion and $38 billion, tweaking up the bottom end from a previous range of $37.7 billion to $38 billion. The adjusted midpoint of $37.9 billion gains an edge over analyst estimates, which hovered around $37.86 billion.
CEO Marc Benioff, beaming with pride, noted the company’s exceptional financial outcomes across multiple areas in a recent statement, highlighting the significance of Agentforce, Salesforce’s artificial intelligence system integrated into their platform, driving transformative internal shifts.
The company’s recent AI push and the introduction of Agentforce, an AI-driven chatbot, have been a hot topic, showcasing a broader shift towards AI agent technology.
Benioff, in a recent candid revelation, shared a personal anecdote about his recent injury, sustaining a ruptured Achilles tendon on a birthday diving trip. Efforts to schedule follow-up visits through AI agents at the hospital left him in a lurch and underlined the critical role of human touch in customer interactions amidst evolving technology landscapes.
The company, amid such transitions, also saw shifts internally, with Chief Financial Officer Amy Weaver stepping down and transitioning into an advisory role until a successor is appointed. This shuffle came on the heels of activist investor Starboard Value ramping up its position in Salesforce by nearly 40%.
With a promising fiscal 2025 outlook and ongoing efficiency drives, Salesforce seems set on a path to continued growth and profitability. It’s evident that the winds of change are blowing at Salesforce, propelled by financial prudence, innovative tech offerings, and a dash of human resilience amidst it all. Exciting times ahead!
