Key Stats for Salesforce.com Stock
- Pre-market Price Change for Salesforce stock: 2%
- $CRM Share Price as of Dec. 3 $239
- 52-Week High: $367
- $CRM Stock Price Target: $328
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What Happened?
Salesforce (CRM) stock is up 2% in pre-market after it beat earnings expectations and delivered stronger-than-expected guidance for the fourth quarter.
The company reported adjusted earnings of $3.25 per share, crushing Wall Street’s estimate of $2.86. Revenue came in at $10.26 billion, nearly matching the $10.27 billion forecast.
In fiscal Q4, Salesforce projected revenue between $11.13 billion and $11.23 billion, well above the $10.9 billion analysts were expecting. That guidance suggests 11% to 12% growth, with about three percentage points coming from the recent Informatica acquisition.
During the earnings call, CEO Marc Benioff and his team delivered impressive metrics around Agentforce, Salesforce’s AI agent platform that automates sales and customer service tasks.
Agentforce now has an annual run rate of over $500 million, up 330% year-over-year. The company has closed more than 9,500 paid Agentforce deals to date, up from 6,000 just three months ago.
Benioff emphasized that Agentforce has processed more than 3.2 trillion tokens through Salesforce’s AI gateway, making the company one of the largest users of foundation models like OpenAI and Anthropic.
He noted that customers who were initially experimenting with building their own AI solutions are now turning to Salesforce because “the last mile is hard.”
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What the Market Is Telling Us About Salesforce Stock
The positive reaction to CRM stock suggests investors are relieved that AI isn’t cannibalizing Salesforce’s core business as feared.
Instead, the company appears to be successfully layering AI capabilities on top of its existing platform, driving both new customer wins and expanded deals with existing clients.
President Miguel Milano shared that more than 70% of Salesforce’s top 100 wins included five or more clouds.
He also revealed that 362 customers returned to “refill the tank” with additional Agentforce purchases in Q3, compared with just three in Q1. That’s a significant signal that early adopters are finding value and expanding their commitments.
The company’s current remaining performance obligation (cRPO) grew 11% year-over-year to $29.4 billion, beating expectations and indicating a healthy pipeline of future revenue. Operating cash flow rose 17% to $2.3 billion, and the company raised its full-year operating cash flow growth guidance to 13%-14%.
However, CRM stock still faces headwinds. The shares are down 29% year-to-date, significantly underperforming the Nasdaq’s 21% gain. Investors have been concerned about whether generative AI would let companies build their own CRM solutions rather than buying from Salesforce.
However, Miguel Milano explained that customers have spent two years experimenting with do-it-yourself AI and are now hitting a wall.
Building accurate enterprise AI requires context, data, metadata, and deterministic workflows that only platforms like Salesforce can provide at scale.
The company also made significant investments in sales capacity, increasing headcount by 23% this year. That investment should pay dividends in future quarters as these newly trained reps ramp up and the Agentforce pipeline converts to revenue.
While CRM stock has struggled this year, the momentum around Agentforce adoption and the company’s strong guidance suggest Salesforce is successfully navigating the AI transition.
Investors should watch whether the company can maintain double-digit cRPO growth and continue expanding Agentforce adoption in the coming quarters.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
