Salesforce (NYSE: CRM) announced better-than-expected third-quarter fiscal 2025 results on Tuesday, with revenue reaching $9.44 billion, up 8% year-over-year. The company's shares jumped 9% in trading, climbing to $361.23 as investors cheered the results.
While semiconductor companies' order books are often viewed as key indicators of AI adoption, Salesforce's successful AI implementation offers another crucial market signal. The strong uptake of their Agentforce AI system demonstrates that businesses are actively investing in AI solutions.
The company's flagship subscription and support revenue grew 9% to $8.88 billion. Net income for the quarter was $1.58 per share on a GAAP basis and $2.41 on a non-GAAP basis, despite a $0.17 per share impact from losses on strategic investments.
The AI CRM leader demonstrated strong profitability improvements, with GAAP operating margin expanding to 20% from 17.2% a year ago. Free cash flow grew 30% to $1.78 billion.
"We delivered another quarter of exceptional financial performance across revenue, margin, cash flow, and cRPO," said CEO Marc Benioff, highlighting the company's AI system Agentforce as key to driving future growth.
Salesforce raised its full-year fiscal 2025 guidance, now expecting revenue between $37.8 billion and $38.0 billion, representing 8-9% growth. The company also boosted its operating margin and cash flow growth forecasts.
The company continued its capital return program, returning $1.6 billion to stockholders through $1.2 billion in share repurchases and $0.4 billion in dividend payments during the quarter.
Current remaining performance obligation, a key metric for future revenue, stood at $26.4 billion, up 10% year-over-year.