Salesforce shares were up 9% on Tuesday after the company reported its fiscal third-quarter earnings, reporting revenue and fiscal fourth-quarter guidance that exceeded analysts’ expectations.
Here’s how the company did compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $2.41 adjusted vs. $2.44 expected
- Revenue: $9.44 billion vs. $9.34 billion expected
The company’s revenue grew 8% year over year during the fiscal third quarter, which ended Oct. 31. Its net income was $1.5 billion in the quarter, up 25% from $1.2 billion a year ago.
Salesforce said that it is expecting fiscal fourth-quarter sales to come in between $9.90 billion to $10.10 billion. Analysts were projecting $10.05 billion in fourth-quarter sales.
The company said that it expects an earnings per share between the range of $2.57 and $2.62 in the fourth-quarter, compared to analysts’ expectations of $2.65.
Salesforce also raised the low end of its revenue guidance for its fiscal 2025 to come between $37.8 billion and $38 billion. That’s up slightly from $37.7 billion to $38 billion previously. The new range puts the mid point for Salesforce’s fiscal 2025 revenue guidance at $37.9 billion, ahead of analysts’ expectations of $37.86 billion.
“We delivered another quarter of exceptional financial performance across revenue, margin, cash flow, and cRPO,” Salesforce CEO Marc Benioff said in a statement. “Agentforce, our complete AI system for enterprises built into the Salesforce Platform, is at the heart of a groundbreaking transformation.”
In a call with analysts, Benioff boasted about Salesforce’s latest artificial intelligence push, including the company’s AI-powered chatbots dubbed Agentforce, which investors are closely monitoring for growth. Salesforce’s Agentforce product is an example of so-called AI agent technology. Several companies have said they believe that these advanced chatbots represent the next logical step from ChatGPT and other related tools powered by large language models.
“We’re delivering these incredible Agentforce capabilities as well,” Benioff said. “This is a bold leap in the future of work, where AI agents let humans unite to transform all of our customer interactions.”
Benioff also revealed that he ruptured his achilles on a recent scuba diving trip to Fakarava in French Polynesia for his birthday. Benioff lamented that the hospital that has treated him could’ve scheduled his follow-up appointments using AI agents.
“That is the message to our customers, which is how are you going to give some of your people a break, let them get back to their strategic work, let them focus on what really matters,” said Benioff, adding that he didn’t “give a Fakarava” about his injury.
The company in August announced that CFO Amy Weaver would step down from her role as chief financial officer but remain in the position until the company appoints a successor, after which she will become an advisor. That same month, activist investor Starboard Value revealed that it boosted its position in Salesforce by roughly 40% in the second quarter following the firm issuing a letter earlier in the year saying that Salesforce was continuing to move “in the right direction” in regards to improving its profit margin.
Starboard Value released a presentation in October in which it noted that Salesforce “can continue to become more efficient and more profitable.”
Watch: Salesforce has been short-term overbought, says Bespoke’s Paul Hickey.