Salesforce.com Stock Earnings Reports

Key investor takeaways: Salesforce reported a strong Q3 with revenue of $9.44B (+8% Y/Y) driven by subscription & support growth (+9%) and geographic strength in EMEA and APAC. Remaining performance obligations (RPO) were $53.1B (+10% Y/Y) and current RPO (cRPO) was $26.4B (+~10% Y/Y). Profitability and cash generation improved meaningfully: non‑GAAP operating margin was 33.1% (up 190 bps Y/Y), GAAP operating margin hit 20% (a company first), Q3 operating cash flow was $2.0B (+29% Y/Y) and free cash flow was $1.8B (+30% Y/Y). Capital return: $1.2B share repurchases and ~$400M in dividends in the quarter. Management raised the low end of FY25 revenue guidance to $37.8B (range $37.8B–$38.0B; ~8–9% Y/Y) and increased FY25 non‑GAAP operating margin guidance to 32.9% with FCF growth guide of ~26–28%.

Strategic/market highlights: The call centered on the launch and early traction of Agentforce — Salesforce’s agentic AI layer. Agentforce went into production in late October and management reported >200 Agentforce deals in Q3 with a pipeline of thousands; early wins include FedEx, Adecco, IBM, RBC, Vivint and others. Data Cloud remains a key foundation (included in ~1/3 of >$1M deals) and management closed acquisitions of Own Company and Zoomin (now incorporated into guidance). Management is scaling go‑to‑market (hiring ~1,400 AEs in Q4), expanding partner enablement (75% of Q3 Agentforce deals involved partners), and offering consumption pricing for agents (cited ~$2 per conversation guidance). cRPO contribution from Agentforce is expected to be immaterial near term as adoption is early. Management emphasized responsible AI, platform integration (More Core initiative), and the long-term TAM expansion from digital labor — but flagged that workforce roles will evolve and customers will need to harmonize data (timelines vary by customer).