Key Points:
- Salesforce Q3 revenue $10.26, EPS $3.25 beat
- AI ARR hit $1.4B, Agentforce $500M
- FY26 outlook lifted to ~$41.5B
Salesforce reported a stronger-than-expected performance in the third quarter of its fiscal 2026, driven largely by expanding subscription revenues and improving margins. The company posted revenue of $10.26 billion, marking an 8.6% year-over-year increase, supported by consistent customer adoption across its cloud platforms. Adjusted earnings per share came in at $3.25, surpassing market expectations and reinforcing investor confidence in Salesforce’s cost discipline and operational efficiency.
Subscription and support services, which form the core of Salesforce’s business, generated $9.73 billion, reflecting a steady 9.5% annual increase. Meanwhile, professional services experienced a mild dip compared with last year, suggesting increased customer preference for automated, cloud-native solutions over legacy consulting-heavy deployments.
One of the most closely watched indicators, the company’s current remaining performance obligations (cRPO), rose to $29.4 billion, up 11% from the previous year. This growth signals a strong pipeline of contracted revenue and a stable forward-looking outlook despite mixed macroeconomic sentiment. Overall, the quarter underscored Salesforce’s resilience even as its year-over-year growth rates normalize from previously higher levels.
AI Portfolio Accelerates Momentum, Boosts Full-Year Guidance
A major highlight of the quarter was the rapid scaling of Salesforce’s AI-focused offerings, including its Agentforce platform and Data Cloud ecosystem. These products saw significant enterprise adoption, fueling the company’s next phase of revenue diversification. Annual recurring revenue (ARR) from AI tools approached $1.4 billion, more than doubling from the previous year as organizations accelerated investments in automation and predictive intelligence.
Agentforce alone surpassed $500 million ARR and processed over 3.2 trillion tokens during the quarter, reflecting fast-growing usage across customer-facing workflows, marketing engines, and sales automation modules. Company executives described the AI pipeline as “more powerful than ever,” with demand shifting quickly from small-scale pilots to multi-department rollouts.
On the back of this momentum, Salesforce Q3 raised its full-year revenue forecast to a range between $41.45 billion and $41.55 billion. The revised outlook also factors in new contributions from its recent acquisition of Informatica, which strengthens its data management and integration capabilities, critical components for scaling AI-powered enterprise operations.
Following the earnings announcement, Salesforce’s stock climbed in after-hours trading, partially offsetting the nearly 29% decline the stock has seen so far this year.
Market Outlook Remains Mixed as Investors Watch AI Adoption Pace
Despite the upbeat quarter, analysts caution that Salesforce Q3 still faces challenges. While AI demand is accelerating, its impact on total revenue may take time to fully materialize. Some business segments continue to grow at a slower pace than in previous cycles, framing the company’s next few quarters as a test of its ability to convert AI enthusiasm into long-term, recurring revenue streams.
Investors also remain focused on how quickly enterprises can adopt large-scale AI solutions amid budget constraints and shifting economic conditions. Salesforce’s future performance will hinge on sustained AI deployment across industries, competitive pricing pressure, and the company’s ability to execute on its expanded data-cloud strategy.
Nonetheless, with a strengthened backlog, rising AI adoption, and a more confident full-year outlook, Salesforce Q3 enters the next quarter with renewed momentum. The company continues positioning itself as a leader in enterprise AI, betting that automation and intelligent CRM workflows will drive the next wave of digital transformation for global businesses.
