Salesforce stock surged more than 10% on Wednesday after the company posted stronger-than-expected third-quarter 2025 results and lifted its guidance.
The cloud-based software company on Tuesday evening reported revenue at US$9.44 billion (A$14.68 billion), an 8% year-over-year increase, beating analysts’ expectations of $9.35 billion, as the company’s new AI initiative, Agentforce fuels demand.
Earnings missed expectations however at $2.41 earnings per share, slightly below analysts’ forecasts of $2.44 per share.
The company posted net income at $1.5 billion, a 25% rise from the prior year, driven by increased demand for its suite of customer relationship management (CRM) tools and cloud services.
Meanwhile, the company’s current remaining performance obligations (CRPO), a key metric for future revenue, gained 10% to $26.4 billion, exceeding estimates of $26.1 billion.
Salesforce also raised its full-year guidance, with the company boosting the low end of its 2025 revenue guidance by $100 million to between $37.8 billion and $38 billion.
Chief executive Marc Benioff called out Agentforce as “the heart of a groundbreaking transformation” and its real financial impact is expected to materialise more significantly in the next fiscal year.
“We’re seeing accelerated adoption of our AI-powered customer success platform, and we remain focused on delivering innovative solutions that help our customers thrive in an increasingly digital world,” Benioff said.
Shares in Salesforce (NYSE: CRM) closed at $367.87 up 10.99% on Tuesday and shares have gained 29.4% year to date. The company has a market capitalisation of approximately $317 billion.