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Salesforce Q3 Earnings: Revenue Beat, EPS Miss, Free Cash Flow Up 30%, AI Driving 'Groundbreaking Transformation' And More

Benzinga ·  05:34

$Salesforce (CRM.US)$ reported third-quarter financial results after the market close on Tuesday. Here's a look at the key metrics from the quarter.

Salesforce reported third-quarter revenue of $9.44 billion, beating the consensus estimate of $9.35 billion. The enterprise cloud solutions company reported adjusted earnings of $2.41 per share, missing analyst estimates of $2.44 per share, according to Benzinga Pro.

Total revenue was up 8% on a year-over-year basis. Operating margin came in at 20%, and non-GAAP operating margin was 33.1%. Cash flow from operations was up 29% year-over-year and free cash flow was up 30% year-over-year to $1.78 billion. The company ended the quarter with remaining performance obligations of $26.4 billion, up 10% year-over-year.

"We delivered another quarter of exceptional financial performance across revenue, margin, cash flow and cRPO," said Marc Benioff, chair and CEO of Salesforce.

"Agentforce, our complete AI system for enterprises built into the Salesforce Platform, is at the heart of a groundbreaking transformation. The rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale."

Salesforce said it repurchased $1.2 billion worth of its stock in the quarter and returned $400 million to shareholders in the form of dividend payments.

Salesforce expects fourth-quarter revenue to be in the range of $9.9 billion to $10.1 billion. The company anticipates fourth-quarter adjusted earnings of $2.57 to $2.62 per share.

Salesforce sees full-year 2025 revenue of $37.8 billion to $38 billion. The company expects full-year adjusted earnings to be between $9.98 and $10.03 per share.

"With Agentforce, we're not just witnessing the future — we're leading it, unleashing a new era of digital labor for every business and every industry," Benioff said.

Management will further discuss the quarter on a conference call with analysts and investors at 5 p.m. E.T.

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