CRM software giant Salesforce (NYSE: CRM) met Wall Streets revenue expectations in Q3 CY2025, with sales up 8.6% year on year to $10.26 billion. The company expects next quarter’s revenue to be around $11.18 billion, coming in 2.5% above analysts’ estimates. Its non-GAAP profit of $3.25 per share was 13.6% above analysts’ consensus estimates.

Is now the time to buy CRM? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

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.

Looking ahead, Salesforce’s updated guidance is shaped by expectations of continued momentum in AgentForce and Data 360, supported by a broader product portfolio and flexible pricing models. President Miguel Milano stated, “The agentic enterprise is a new paradigm. Customers will use Salesforce as the platform for digital labor, for sales, for service, for marketing.” Management also emphasized investments in sales enablement and distribution capacity, anticipating these will position the company to capture further AI-driven growth and expand its reach across industries.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to rapid growth in AI product adoption, successful integration of strategic acquisitions, and increased sales force capacity, while highlighting sector-specific trends.

• AgentForce adoption surges: Management pointed to substantial momentum for AgentForce, Salesforce’s AI-powered automation platform, with over 18,500 deals since launch and a 70% quarter-over-quarter increase in customers in production. This rapid adoption, particularly by large enterprises, is fueling expansion across existing and new Salesforce customers.

• Flexible pricing models: The company highlighted innovations in pricing, including enterprise license agreements (AELA) and seat-based models, which meet customers at different stages of AI adoption. Management noted that these flexible options have helped drive bookings, citing that AgentForce’s premium SKUs doubled quarter over quarter.

• Strategic acquisitions fuel data strategy: The integration of Informatica with Data 360 and MuleSoft has created what management calls a “data foundation” for the enterprise, enabling context-rich AI applications. CEO Marc Benioff described this combined infrastructure as essential for accurate, low-hallucination AI experiences in enterprise settings.

• Distribution and sales enablement investments: Management reported a 20% increase in sales capacity and a renewed focus on training, which they believe is already translating to record pipeline generation and improved productivity across customer segments.

• Vertical and geographic performance: Growth was especially strong in North America and EMEA, with retail, life sciences, and public sector verticals outperforming. Management also cited major wins in government and healthcare, including new deployments for agencies like the IRS and expansion in the automotive sector with customers such as General Motors.

Drivers of Future Performance

Salesforce expects AI-driven adoption, expanded product offerings, and operational investments to shape growth and profitability in the coming quarters.

• AI and automation momentum: Management believes AgentForce and Data 360 will drive high-single-digit subscription growth, fueled by rising enterprise demand for AI-powered workflow automation and customer engagement tools. The company expects these products to expand both revenue and average contract value per customer.

• Margin discipline and cost management: Salesforce plans to maintain adjusted operating margins above 34%, citing continued focus on operational discipline and efficiencies in product deployment. Management noted that timing of expenses and improved collections contributed to Q3 margin strength, and similar measures are aimed at supporting future profitability.

• Product and geographic mix: Management highlighted ongoing strength in North America and EMEA, as well as growth in small/mid-market and enterprise segments. However, they acknowledged that challenges remain in Asia-Pacific and in sectors such as communications, manufacturing, and energy, which may temper overall growth rates.

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.

Salesforce currently trades at $243.32, up from $239 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).

Stocks That Trumped Tariffs

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.