Salesforce's Q3 Revenue Exceeds Expectations

Salesforce, a leading cloud computing company, has reported a significant increase in its third-quarter revenue, surpassing Wall Street estimates. The company's strong performance was driven by robust spending on its enterprise cloud portfolio, which has seen a surge in demand as businesses seek to streamline their operations and leverage artificial intelligence (AI).

Salesforce's revenue for the third quarter rose 8% to $9.44 billion, outpacing the average analyst estimate of $9.35 billion, according to data compiled by LSEG. The company has been heavily investing in its new Agentforce product, an AI-driven platform designed to autonomously complete tasks, similar to Microsoft's efforts in the AI space.

The Agentforce platform is supported by Salesforce's data cloud, which has been performing exceptionally well and is the fastest-growing organic product in the company's history. This strong performance is mirrored by competitors such as Snowflake and ServiceNow, who have also reported upbeat revenue forecasts, indicating a growing demand for AI software services and increased client budgets.

Salesforce has revised its annual revenue forecast upwards, now expecting revenue between $37.8 billion and $38 billion, compared to its previous range of $37.7 billion to $38 billion. The company has also slightly increased its forecast for full-year operating margin to 19.8% from 19.7%. On an adjusted basis, Salesforce earned $2.41 per share, slightly below estimates of $2.44.