Salesforce (CRM) CRM Q3 Financial Results Summary
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Salesforce (CRM) Q3 2026 Financial Results Summary
Salesforce (NYSE: CRM) released its financial results for the third quarter of fiscal 2026 on December 3, 2025, reporting several significant achievements and metrics that reflected the company’s growth.
Financial Highlights
- Total Current Remaining Performance Obligation (cRPO): $29.4 billion, up 11% year-over-year (Y/Y).
- Total Remaining Performance Obligation (RPO): $59.5 billion, up 12% Y/Y.
- Subscription & Support Revenue: $9.7 billion, reflecting an increase of 10% Y/Y (9% in constant currency).
- Total Revenue: $10.3 billion, up 9% Y/Y (8% in constant currency).
- GAAP Operating Margin: 21.3%; Non-GAAP Operating Margin: 35.5%.
- Operating Cash Flow: $2.3 billion, up 17% Y/Y; Free Cash Flow: $2.2 billion, up 22% Y/Y.
- Shareholder Returns: $4.2 billion returned to shareholders, including:
- Share Repurchases: $3.8 billion.
- Dividends: $395 million.
Guidance
- Salesforce raised its full year FY26 revenue guidance to between $41.45 billion and $41.55 billion, indicating a growth of 9% – 10% Y/Y (approximately 9% in constant currency).
- Full year FY26 GAAP operating margin guidance updated to 20.3%; maintained Non-GAAP operating margin guidance at 34.1%.
- Operating cash flow growth guidance raised to approximately 13% – 14% Y/Y.
Product Highlights
- Agentforce and Data 360 products significantly driven business momentum:
- ARR reached nearly $1.4 billion, indicating a 114% growth Y/Y.
- Agentforce’s ARR surpassed half a billion, growing 330% Y/Y.
- Over 9,500 paid Agentforce deals, up 50% quarter-over-quarter.
- Agentforce processed over 3.2 trillion tokens.
- In Q3, Data 360 ingested 32 trillion records, reflecting a 119% Y/Y increase, with unstructured data processing showing growth of 390% Y/Y.
Customer Adoption Metrics
- Nearly 90% of Forbes’ Top 50 AI companies utilize Salesforce, averaging 4 clouds each.
- Over 18,500 Agentforce deals closed since launch.
- 50% of Agentforce and Data 360 Q3 bookings stemmed from existing customer expansion.
Observations from Leadership
- Marc Benioff, Chair and CEO, highlighted the robust pipeline of future revenue indicated by the 11% Y/Y gain in cRPO.
- Robin Washington, President and COO, referenced the company’s path toward achieving its target of over $60 billion in organic revenue and a growth framework of 50 by FY30.
Additional Product Releases
Salesforce continues to innovate with major updates for its platform occurring regularly. A Customer Momentum & Success Update webinar is scheduled for December 4, 2025, to provide further insights into their financial results and strategies.
Conclusion
The third quarter of fiscal 2026 for Salesforce demonstrated robust growth across multiple metrics, supported by its innovative products and strong customer adoption. The company’s commitment to returning value to shareholders through dividends and share repurchases underscores its solid financial foundation as it looks toward future expansion.
For more detailed insights and updates, Salesforce will host a quarterly conference call and provide a live webcast through its Investor Relations website.
### Condensed Consolidated Statements of Operations
(in millions, except per share data)
(Unaudited)
| Three Months Ended October | Nine Months Ended October | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenues: | ||||
| Subscription and support | $ 9,726 | $ 8,879 | $ 28,713 | $ 26,228 |
| Professional services and other | 533 | 565 | 1,611 | 1,674 |
| Total revenues | 10,259 | 9,444 | 30,324 | 27,902 |
| Cost of revenues (1)(2): | ||||
| Subscription and support | 1,665 | 1,501 | 4,921 | 4,617 |
| Professional services and other | 590 | 604 | 1,841 | 1,809 |
| Total cost of revenues | 2,255 | 2,105 | 6,762 | 6,426 |
| Gross profit | 8,004 | 7,339 | 23,562 | 21,476 |
| Operating expenses (1)(2): | ||||
| Research and development | 1,433 | 1,356 | 4,374 | 4,073 |
| Sales and marketing | 3,456 | 3,323 | 10,328 | 9,786 |
| General and administrative | 667 | 711 | 2,098 | 2,069 |
| Restructuring | 260 | 56 | 300 | 163 |
| Total operating expenses | 5,816 | 5,446 | 17,100 | 16,091 |
| Income from operations | 2,188 | 1,893 | 6,462 | 5,385 |
| Gains (losses) on strategic investments, net | 263 | -217 | 206 | -217 |
| Other income | 61 | 70 | 224 | 282 |
| Income before provision for income taxes | 2,512 | 1,746 | 6,892 | 5,450 |
| Provision for income taxes | -426 | -219 | -1,378 | -961 |
| Net income | $ 2,086 | $ 1,527 | $ 5,514 | $ 4,489 |
| Basic net income per share | $ 2.20 | $ 1.60 | $ 5.77 | $ 4.66 |
| Diluted net income per share (3) | $ 2.19 | $ 1.58 | $ 5.73 | $ 4.60 |
| Shares used in computing basic net income per share | 948 | 956 | 955 | 963 |
| Shares used in computing diluted net income per share | 952 | 965 | 962 | 975 |
(1) Amounts include amortization of intangible assets acquired through business combinations, as follows:
| Three Months Ended October 31, | Nine Months Ended October 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Cost of revenues | $ 156 | $ 131 | $ 468 | $ 600 |
| Sales and marketing | 230 | 223 | 693 | 669 |
(2) Amounts include stock-based compensation expense, as follows:
| Three Months Ended October 31, | Nine Months Ended October 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Cost of revenues | $ 129 | $ 135 | $ 406 | $ 386 |
| Research and development | 271 | 278 | 826 | 814 |
| Sales and marketing | 296 | 312 | 874 | 911 |
| General and administrative | 109 | 95 | 291 | 267 |
| Restructuring | 14 | 0 | 29 | 2 |
(3) During the three months ended October 31, 2025 and 2024, gains (losses) on strategic investments impacted GAAP diluted net income per share by $0.21 and $(0.17) based on a U.S. tax rate of 23.5% and 24.5%, respectively, and non GAAP diluted net income per share by $0.22 and $(0.18) based on a non-GAAP tax rate of 22.0%.
### Condensed Consolidated Balance Sheets
(in millions)
| October 31, 2025 | January 31, 2025 | |
|---|---|---|
| Assets | -unaudited | |
| Current assets: | ||
| Cash and cash equivalents | $ 8,978 | $ 8,848 |
| Marketable securities | 2,345 | 5,184 |
| Accounts receivable, net | 5,474 | 11,945 |
| Costs capitalized to obtain revenue | 1,835 | 1,971 |
| contracts, net | ||
| Prepaid expenses and other current assets | 2,431 | 1,779 |
| Total current assets | 21,063 | 29,727 |
| Property and equipment, net | 3,147 | 3,236 |
| Operating lease right-of-use assets, net | 1,949 | 2,157 |
| Noncurrent costs capitalized to obtain revenue contracts, net | 2,293 | 2,475 |
| Strategic investments | 6,410 | 4,852 |
| Goodwill | 52,457 | 51,283 |
| Intangible assets acquired through business combinations, net | 3,491 | 4,428 |
| Deferred tax assets and other assets, net | 4,334 | 4,770 |
| Total assets | $ 95,144 | $ 102,928 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable, accrued expenses and other liabilities | $ 5,850 | $ 6,658 |
| Operating lease liabilities, current | 564 | 579 |
| Unearned revenue | 14,996 | 20,743 |
| Total current liabilities | 21,410 | 27,980 |
| Noncurrent debt | 8,438 | 8,433 |
| Noncurrent operating lease liabilities | 2,137 | 2,380 |
| Other noncurrent liabilities | 3,138 | 2,962 |
| Total liabilities | 35,123 | 41,755 |
| Stockholders’ equity: | ||
| Common stock | 1 | 1 |
| Treasury stock, at cost | -28,255 | -19,507 |
| Additional paid-in capital | 67,448 | 64,576 |
| Accumulated other comprehensive income (loss) | 154 | -266 |
| Retained earnings | 20,673 | 16,369 |
| Total stockholders’ equity | 60,021 | 61,173 |
| Total liabilities and stockholders’ equity | $ 95,144 | $ 102,928 |