Salesforce CEO Marc Benioff delivers the keynote address at the beginning of the Dreamforce conference in San Francisco on October 14, 2025.
Jessica Christian | San Francisco Chronicle | Getty Images
sales force reported better-than-expected earnings on Wednesday, and its fourth-quarter earnings outlook beat Wall Street expectations. Shares rose 2% in extended trading.
Here’s how the company performed compared to the LSEG consensus:
Earnings per share: $3.25 adjusted vs. $2.86 expected Revenue: $10.26 billion vs. $10.27 billion expected
Sales for the third quarter of the fiscal year ended Oct. 31 increased 8.6% from the same period last year, according to the announcement. Net income increased to $2.09 billion ($2.19 per share) from $1.53 billion ($1.58 per share) in the prior-year period, driven by a $263 million gain from strategic investments.
Adjusted earnings per share does not include stock-based compensation.
Robin Washington, Salesforce’s chief operating financial officer, said on a conference call with analysts that Tableau’s data analytics business had more cloud services in the mix than the company expected during the quarter. Revenue from on-premises Tableau and MuleSoft app integration products is recognized during the quarter rather than over time.
For its fiscal fourth quarter, Salesforce expects revenue of $11.13 billion to $11.23 billion and adjusted earnings per share of $3.02 to $3.04. Analysts polled by LSEG had expected earnings of $3.04 per share and revenue of $10.9 billion.
The guidance suggests revenue growth of 11% to 12% and is driven by about 3 percentage points from data management company Informatica, which Salesforce acquired in November for about $8 billion. At the same time, the guidance takes into account MuleSoft and Tableau’s continued migration to the cloud, as well as continued weakness in marketing and commerce products, Washington said.
Salesforce stock has significantly underperformed the broader technology sector this year, due in part to concerns that some product features could be replaced by artificial intelligence. As of Wednesday’s close, 2025 shares were down 29%, while the Nasdaq was up about 21%.
During the fiscal third quarter, Salesforce acquired Regrello, a startup whose AI software performs tasks, and Waii, which uses AI to write code that queries data based on human input of a few words. The company also introduced Agentforce AI software to manage IT service requests and set a revenue target of $60 billion for fiscal year 2030, beating analyst expectations.
Agentforce, which automates sales and customer service workflows, saw annual revenue increase 330% year-over-year to more than $500 million. Salesforce said it has acquired more than 9,500 paid transactions to date, up from more than 6,000 as of September.
Free cash flow rose 22% to $2.18 billion, but the total was below the street consensus of $2.24 billion.
This is developing news. Please check back for the latest information.
Featured: Cramer’s Stop Trading: Salesforce
