Salesforce Earnings Lift Guidance on AI Demand

Salesforce, Inc. (CRM) said in a press release on Dec. 3, 2025, that it raised full-year FY2026 guidance as accelerating adoption of its AI products Agentforce and Data 360 supported margin expansion and stronger cash flow.

Quarterly Financial Results and AI Momentum

For the quarter ended Oct. 31, 2025, Salesforce reported total revenue of $10.3 billion, up 9% year-over-year and 8% on a constant-currency basis. Subscription and support revenue reached $9.7 billion, rising 10% year-over-year and 9% in constant currency. Nine-month FY2026 revenue totaled $30.3 billion, an 8.7% increase.

Profitability improved with GAAP operating margin rising to 21.3% from 20.0% a year earlier, while non-GAAP operating margin expanded to 35.5% from 33.1%. Operating cash flow grew 17% year-over-year to $2.3 billion, and free cash flow increased 22% to $2.2 billion. For the nine months, GAAP net income was $5.5 billion and non-GAAP net income was $8.4 billion. Non-GAAP results exclude stock-based compensation, amortization of intangibles, and restructuring charges.

The company returned $4.2 billion to shareholders in the quarter, including $3.8 billion in share repurchases and $395 million in dividends. Dividend payments for the first nine months totaled $1.2 billion. Remaining performance obligations (RPO) stood at $29.4 billion, up 11% year-over-year, while total RPO rose 12% to $59.5 billion.

Earnings per share rose to $2.19 GAAP diluted EPS from $1.58 a year earlier, and $3.25 non-GAAP diluted EPS from $2.41. For the nine months, GAAP diluted EPS was $5.73 and non-GAAP diluted EPS was $8.72.

Salesforce’s combined annual recurring revenue (ARR) for Agentforce and Data 360 reached $1.4 billion, a 114% year-over-year increase. Agentforce ARR alone surpassed $500 million, up 330%. Paid Agentforce deals exceeded 9,500, a 50% increase quarter-over-quarter, with total deals since launch exceeding 18,500. Accounts in production grew 70% quarter-over-quarter. Agentforce processed 3.2 trillion tokens through its large language model gateway, while Data 360 ingested 32 trillion records in the quarter, including 15 trillion via its Zero Copy feature. Half of Agentforce and Data 360 bookings came from existing-customer expansion.

Guidance and Strategic Outlook

Salesforce raised its full-year FY2026 revenue guidance to a range of $41.45 billion to $41.55 billion, implying 9% to 10% growth year-over-year and about 9% in constant currency. The guidance includes roughly 80 basis points of revenue contribution from Informatica, whose acquisition closed on Nov. 18, 2025. The company updated GAAP operating margin guidance to 20.3% and maintained non-GAAP operating margin guidance at 34.1%.

Salesforce reiterated its long-term target of exceeding $60 billion in organic revenue and achieving a 50% operating margin by fiscal 2030 under its Profitable Growth Framework.

Marc Benioff, chair and CEO, said the results were "signaling a powerful pipeline of future revenue," highlighting the momentum from Agentforce and Data 360. Robin Washington, president and chief financial and operating officer, noted that the quarter’s momentum reinforced the path toward the company’s long-term revenue and margin goals.