Salesforce’s third quarter results drew a positive market response, with management crediting strong adoption of its AI-driven AgentForce platform and robust execution across core segments. CEO Marc Benioff highlighted that AgentForce ARR reached about $540 million, up 330% year over year, and emphasized that customer demand for AI-powered solutions is accelerating, especially as enterprises seek to integrate automation with their existing workflows. Management noted that the combination of AgentForce, Data 360, and expanded sales capacity was instrumental in driving both bookings and operational efficiency.
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Salesforce (CRM) Q3 CY2025 Highlights:
- Revenue: $10.26 billion vs analyst estimates of $10.28 billion (8.6% year-on-year growth, in line)
- Adjusted EPS: $3.25 vs analyst estimates of $2.86 (13.6% beat)
- Adjusted Operating Income: $3.64 billion vs analyst estimates of $3.51 billion (35.5% margin, 3.8% beat)
- Revenue Guidance for Q4 CY2025 is $11.18 billion at the midpoint, above analyst estimates of $10.9 billion
- Management raised its full-year Adjusted EPS guidance to $11.76 at the midpoint, a 3.6% increase
- Operating Margin: 21.3%, up from 20% in the same quarter last year
- Annual Recurring Revenue: $38.9 billion vs analyst estimates of $38.95 billion (9.5% year-on-year growth, in line)
- Billings: $8.7 billion at quarter end, up 13.1% year on year
- Market Capitalization: $244.6 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Salesforce’s Q3 Earnings Call
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Keith Weiss (Morgan Stanley) asked about customers’ willingness to build their own AI solutions versus adopting Salesforce’s platform. President Miguel Milano emphasized that most companies find DIY approaches difficult, and prefer Salesforce’s integrated, context-driven AI.
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Raimo Lenschow (Barclays) inquired about the ramping and productivity of new sales reps. Milano explained that a 20% increase in sales capacity, along with enhanced training, has led to strong pipeline growth and better alignment with rising demand.
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Brad Zelnick (Deutsche Bank) questioned Salesforce’s competitive advantage in data infrastructure. CEO Marc Benioff argued that the company’s data foundation, combining Informatica, Data 360, and MuleSoft, is now a core differentiator underpinning all AI and application growth.
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Brent Thill (Jefferies) asked about AgentForce’s impact on legacy products and the resurgence of Slack. Benioff stated that AgentForce acts as an accelerator for core products, with Slack’s growth benefiting from deeper AI integration and usage across large enterprises.
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Kirk Materne (Evercore Partners) sought clarity on AgentForce pricing and monetization as automation potentially reduces customer headcount. Milano responded that new pricing models and enterprise agreements allow Salesforce to monetize increased value, even if user numbers remain stable or decline.
Catalysts in Upcoming Quarters
In coming quarters, the team will be watching (1) adoption rates and expansion of AgentForce across new and existing customers, (2) continued integration progress and revenue contribution from Informatica and Data 360, and (3) the company’s ability to sustain margin discipline as investments in sales and product development ramp. The trajectory of enterprise AI adoption and competitive dynamics in core verticals will also be important indicators of future performance.
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