What Happened
Salesforce (NYSE: CRM) reported its Q3 FY26 results, showcasing a strong performance with a non-GAAP earnings per share (EPS) of $3.25, surpassing the consensus estimate of $2.86 by 13.6%. The company also raised its full-year revenue guidance to between $41.45 billion and $41.55 billion, reflecting confidence in its future revenue pipeline. Despite these positive results, Salesforce shares experienced a 5% decline in extended trading following the announcement.
Why It Matters
The reported revenue of $10.26 billion was in line with expectations, and the company achieved a year-over-year revenue growth of 12%, marking its fastest growth rate in two years. However, the fiscal 2027 revenue outlook fell short of Wall Street projections, contributing to the stock’s decline. Salesforce’s current remaining performance obligation, which indicates future revenue, stood at $35.1 billion, exceeding analyst expectations.
What’s Next
Looking ahead, Salesforce is set to report its Q4 FY26 results, with analysts predicting an adjusted EPS of $3.05 and revenue of approximately $11.19 billion. The company has also announced a $50 billion share buyback program, indicating a strategy to bolster its stock price amidst current market conditions. Investors are advised to monitor the demand trends for Salesforce’s Agentforce product and the overall guidance for the upcoming fiscal year.
