Salesforce Earnings: AI Momentum Is Undeniable, with Notable Strength in Agentforce

Key Morningstar Metrics for Salesforce

• Fair Value Estimate: $325.00
• Morningstar Rating: ★★★★
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: High

What We Thought of Salesforce’s Earnings

Salesforce’s CRM fiscal third-quarter revenue grew 8% in constant currency to $10.26 billion, while non-GAAP operating margin was 35.5%. Fourth-quarter guidance is as expected after normalizing for the inclusion of Informatica, which recently closed.

Why it matters: Artificial intelligence is top of mind for investors, and momentum here is clearly growing. Agentforce and Data 360 saw annual recurring revenue of $1.4 billion, up 114% year over year, while stand-alone Agentforce ARR passed $500 million and was up 330% year over year.

• Subscriptions and services were both in line with our model, with Data 360 shy of our expectations and Platform and Other better than we anticipated. Billings accelerated to 13% year-over-year growth, topping revenue growth and boding well for the near term.

The bottom line: We maintain our fair value estimate of $325 per share and see the stock as attractive. The seat-based model Salesforce employs has come under intense scrutiny and pressured most of our software coverage throughout 2025, despite our belief that AI is more tool than threat.

• We remind investors that management has guided toward becoming a rule-of-50 firm on its march toward $60 billion in revenue by 2030, and that our model is more conservative. Assuming the firm shows meaningful progress over the next several years, shares would have even more upside.

Coming up: The fourth-quarter outlook formally includes the Informatica deal, which closed on Nov. 18. After normalizing for the acquisition, we characterize guidance as consistent with broader expectations.

• Management was enthusiastic about the building pipeline and the growing usage of AI and still expects revenue to accelerate within 12-18 months.
• Fourth quarter guidance calls for $11.13 billion-$11.23 billion in revenue, which includes approximately $300 million in incremental sales from Informatica, based on our calculations. The full-year outlook for non-GAAP operating margin remains stable at 34.1%.