Salesforce beats on earnings, issues better-than-expected revenue forecast

Salesforce beats on earnings, issues better-than-expected revenue forecast


Salesforce CEO Marc Benioff delivers the keynote address at the start of the Dreamforce conference in San Francisco on Oct. 14, 2025.

Jessica Christian | San Francisco Chronicle | Getty Images

Salesforce reported better-than-expected earnings on Wednesday and topped Wall Street estimates with its revenue guidance for the fourth quarter. The stock rose 5% in extended trading.

Here’s how the company did in comparison with LSEG consensus:

  • Earnings per share: $3.25 adjusted vs. $2.86 expected
  • Revenue: $10.26 billion vs. $10.27 billion expected

Revenue increased 8.6% from a year earlier in the fiscal third quarter, which ended on Oct. 31, according to a statement. Net income increased to $2.09 billion, or $2.19 per share, from $1.53 billion, or $1.58 per share, in the same quarter last year, boosted by a $263 million gain from strategic investments.

Adjusted earnings per share exclude stock-based compensation.

For the fiscal fourth quarter, Salesforce called for $3.02 to $3.04 in adjusted earnings per share on $11.13 billion to $11.23 billion in revenue. Analysts polled by LSEG had expected $3.04 per share and $10.9 billion in revenue. The guidance implies revenue growth between 11% and 12%, with about 3 points coming from Informatica, the data management company Salesforce acquired for around $8 billion in November.

Salesforce’s stock has badly underperformed the broader tech sector this year, in part due to concerns about the potential of artificial intelligence replacing some of its product capabilities. As of Wednesday’s close, the shares are down 29% in 2025, while the Nasdaq has gained about 21%.

During the fiscal third quarter, Salesforce acquired startups Regrello, whose AI software performs tasks, and Waii, which uses AI to compose code for running queries on data based on a few words of human input. The company also introduced Agentforce AI software for managing IT service requests, and issued a $60 billion fiscal 2030 revenue target, surpassing analysts’ projections.

Annualized revenue from Agentforce, which automates sales and customer service workflows, jumped 330% from a year earlier to over $500 million.

Free cash flow grew 22% to $2.18 billion, but the total was below StreetAccount’s $2.24 billion consensus.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is developing news. Please check back for updates.

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