Salesforce (NYSE: CRM) reported third-quarter results that came in ahead of expectations and raised its full-year outlook, helped by steady uptake of its artificial intelligence-enhanced offerings. Shares in the cloud software provider rose about 3% intra-day on Thursday.
For the quarter ended October 31, the company posted earnings per share of $3.25, topping Bloomberg consensus forecasts of $2.86. Revenue increased 8.6% from a year earlier to $10.3 billion, slightly above expectations. Subscription and support revenue, which makes up the bulk of the business, rose 10% year over year.
Salesforce said it now expected fiscal 2026 revenue of $41.45 billion to $41.55 billion, compared with a prior outlook of $41.1 billion to $41.3 billion. For the fourth quarter, it projected EPS of $3.02 to $3.04 and revenue of $11.13 billion to $11.23 billion.
The improved guidance was underpinned by strong anticipated demand for the company’s AI-powered agent platform, particularly among large enterprise customers. Salesforce said it expected to benefit from a growing number of organizations adopting AI tools to streamline operations. Mega-cap technology firms, including Oracle, have leaned on Salesforce’s AI agents to automate workflows and support decision-making.
Salesforce’s current remaining performance obligations, a key indicator of future revenue streams, rose 11% in the quarter. Operating cash flow increased 17% to $2.3 billion, reflecting healthy cash generation alongside the AI-driven growth strategy.
