Salesforce reported record results for the third quarter of its fiscal year 2026, supported by continued growth in its artificial intelligence and data products. The company also raised its full year revenue and earnings guidance after delivering stronger than expected performance across its cloud and AI portfolio. According to the earnings announcement, demand for Salesforce’s newer AI tools, particularly Agentforce and Data 360, contributed significantly to the company’s quarterly momentum and its improved financial outlook.
For the quarter ended October 31, 2025, Salesforce posted revenue of approximately 10.3 billion dollars, which marked a nine percent increase compared with the same period a year earlier. Subscription and support revenue grew by about 10 percent, reflecting stable demand for the company’s core cloud software offerings. The company reported 29.4 billion dollars in current remaining performance obligations, representing an 11 percent increase year over year and indicating strong contracted revenue entering the next quarter.
Profitability metrics also improved during the period. Salesforce recorded a non GAAP operating margin of 35.5 percent and generated 2.2 billion dollars in free cash flow, which was 22 percent higher than the previous year. The company returned 4.2 billion dollars to shareholders through dividends and share repurchases, maintaining its focus on capital efficiency while continuing to invest in product development.
A major highlight of the quarter was the performance of Salesforce’s AI portfolio. Annual recurring revenue for Agentforce and Data 360 reached nearly 1.4 billion dollars, more than doubling compared with last year. Agentforce crossed 500 million dollars in ARR and recorded more than 9,500 paid deals during the quarter. The company said Agentforce processed more than 3.2 trillion tokens through its large language model gateway, reflecting increased enterprise usage across sales, service, and marketing functions.
Chair and chief executive officer Marc Benioff said the company’s upgraded outlook underscores confidence in the long term demand for AI based software and data solutions. Salesforce now expects full fiscal year 2026 revenue between 41.45 billion dollars and 41.55 billion dollars. The company also raised its forecast for adjusted earnings per share and operating cash flow growth for the year.
Salesforce completed its acquisition of Informatica earlier in 2025, a move executives said would strengthen the company’s data management and governance capabilities. Informatica’s integration contributed to the updated full year revenue guidance. The company highlighted that the expanded data and integration features would play an important role in supporting the adoption of AI workflows across its ecosystem.
The third quarter results come at a time when technology companies are navigating mixed signals around enterprise adoption of AI. While interest in AI driven solutions remains high, many organisations are in early stages of large scale deployment. Salesforce’s performance for the quarter showed solid overall growth, although the rate of expansion remains modest compared with earlier periods of rapid cloud adoption. Industry analysts have noted that established cloud companies are now balancing innovation in AI with the need to show consistent revenue and profitability.
Salesforce’s stock gained after hours following the earnings release. Analysts said the positive reaction reflected investor confidence in the company’s ability to convert early AI demand into broader enterprise adoption. The raised guidance suggests that Salesforce expects continued growth as more organisations integrate AI tools into their customer facing and operational functions.
The company also reported strong remaining performance obligations, which rose 12 percent year over year to nearly 60 billion dollars. This is an indicator of contracted but not yet recognised revenue that can support growth in future quarters. Salesforce reaffirmed its guidance for operating margin and indicated that subscription and support revenue will remain a major driver of the company’s overall performance.
Despite the positive results, Salesforce faces significant competition in AI and cloud software as rival providers accelerate investments in agentic AI and automation platforms. The company has set a long term target of surpassing 60 billion dollars in annual revenue by fiscal 2030. Achieving this goal will depend on successful scaling of its AI products and continued growth in enterprise adoption across global markets.
In summary, Salesforce delivered strong financial results for the third quarter of fiscal 2026 and raised its full year guidance based on the performance of its AI and data products. Revenue growth, improved margins, and rising recurring revenue from Agentforce and Data 360 indicate continued customer interest in AI driven enterprise tools. The company said it will continue to focus on expanding AI capabilities, strengthening data governance, and supporting enterprise adoption as it prepares for the final quarter of the fiscal year.