Salesforce (CRM) reported mixed fiscal third-quarter results. The company’s performance was supported by strong demand for its AI‑driven products and robust cash generation. Further, the software giant raised its Fiscal 2026 revenue guidance, buoyed by tailwinds from AI integration across enterprise workflows.
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The company delivered adjusted earnings per share of $3.25, which easily surpassed the analysts’ consensus of $2.86. Meanwhile, revenue came in at $10.26 billion, marginally missing forecasts of $10.27 billion but marking a 10% year-over-year increase.
Also, the company’s current remaining performance obligation (cRPO), a key indicator of future revenue, rose 11% to $29.4 billion.
CEO Marc Benioff highlighted Agentforce and Data 360 as key growth engines. He noted Agentforce annual recurring revenue (ARR) reached $1.4 billion, up 114% year-over-year, supported by over 9,500 paid deals and 3.2 trillion tokens processed.
Lifts Guidance for FY26
Looking ahead, CRM raised the full-year revenue expectations to a range of $41.45 billion to $41.55 billion, compared with $41.1 billion to $41.3 billion previously. The company expects subscription & support revenue growth slightly above 10%, including about 80bps contribution from Informatica acquisition.
Further, Salesforce has lifted its adjusted earnings outlook to $11.75 and $11.77 from the previous guidance of $11.33 and $11.37.
Also, Salesforce initiated fourth-quarter revenue guidance of $11.13 billion to $11.23 billion, representing 11% to 12% growth. Also, it expects $3.02 to $3.04 in adjusted earnings per share. Analysts are projecting earnings of $3.04 per share on revenue of $10.9 billion.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 29 Buys, nine Holds, and one Sell assigned in the last three months. At $325.31, the average Salesforce stock price target implies a 36.67% upside potential.
It’s worth noting that estimates will likely change following today’s earnings report.
