Salesforce shares surged 9% after the fiscal third-quarter earnings report of the company was way better than Wall Street’s expectations, as both revenue and guidance for the next quarter. The company recorded a revenue of $9.44 billion in the third quarter. It was more than the consensus from analysts at $9.34 billion. This would indicate a year-over-year growth of 8%. The company’s bottom line rose 25% to $1.5 billion from $1.2 billion in the same period last year.
In its fiscal fourth quarter, sales from Salesforce are expected to jump into a range of $9.9 billion to $10.1 billion just ahead of an analyst’s expectation of $10.05 billion. For adjusted earnings per share for the quarter, it forecasts $2.57 to $2.62 below an analyst’s expectation of $2.65.
Salesforce also increased the revenue guidance for fiscal year 2025 to $37.8 billion to $38 billion from its previously guided range of $37.7 billion to $38 billion. New guidance pushes the midpoint to $37.9 billion, a hair above the Wall Street estimate at $37.86 billion. According to Benioff, the company was successful mainly because of its ability to stay innovative, especially its new AI-driven products. As part of his statement, he identified Agentforce, an AI-based system in enterprises, which is integrated with the Salesforce platform. This system revolutionizes the way customers will be reached, and it puts Salesforce at the forefront of AI change in enterprises. Investors have kept close attention on Agentforce as it forms part of the overall approach Salesforce uses to integrate artificial intelligence in its business solutions.
Benioff also made some personal news during the earnings call: he recently ruptured his Achilles tendon while on a scuba diving trip in French Polynesia. He was focused on the discussion of Salesforce’s progress and AI agents’ potential to transform customer experiences across industries.
The company remains under pressure from activist investors, such as Starboard Value, which has been calling on Salesforce to improve its profitability. However, the most recent earnings report and forward guidance suggest strong momentum, fueled by AI innovation and strong revenue growth.
