Shares in Salesforce (NYSE: CRM) surged more than 10% in after-hours trading following the release of the company’s fiscal Q3 2025 earnings report. The company exceeded revenue expectations, raised its full-year revenue outlook, and highlighted advancements in its artificial intelligence (AI) initiatives.
Shares are currently trading at US$366.30, up from US$331.76 at Tuesday’s close.
Salesforce is a leading cloud-based software company specialising in Customer Relationship Management (CRM) solutions. The company has a market capitalisation of approximately US$317bn.
Quarterly performance
For the quarter ending 31 October 2024, Salesforce reported:
- Revenue: US$9.44bn, an 8% year-over-year increase, surpassing analysts’ expectations of US$9.35bn.
- Net income: US$1.5bn, a 25% rise from the prior year.
- Adjusted earnings per share: US$2.41, slightly below analysts’ forecasts of US$2.44.
The company’s current remaining performance obligations (CRPO), a key metric for future revenue, rose 10% to US$26.4bn, exceeding estimates of US$26.1bn.
Guidance and outlook
Salesforce projects Q4 2025 revenue between US$9.9bn and US$10.1bn, with full-year fiscal revenue forecasted at US$37.8bn to US$38bn. This slightly raises the lower end of the company’s previous guidance and exceeds analysts’ expectations of US$37.86bn.
AI initiatives drive optimism
The company showcased its continued emphasis on artificial intelligence, particularly through its “Agentforce” platform.
Agentforce enables businesses to develop and deploy autonomous AI agents across various functions, including sales, service, marketing and commerce. Agents can handle tasks such as resolving customer inquiries, evaluating potential sales leads, and managing marketing campaigns without human intervention.
Notable AI-related developments during the quarter include:
- The launch of the Agentforce Partner Network, enabling businesses to integrate external data sources and third-party AI tools.
- Acquisitions of Israeli startup Zoomin Software and cloud data specialist Own Co, aimed at enhancing Salesforce’s AI capabilities.
CEO Marc Benioff called Agentforce “the heart of a groundbreaking transformation”. Its financial impact is expected to materialise more significantly in the next fiscal year.
Salesforce shares have gained 29.4% year to date.