Salesforce stock pops on revenue guidance, AI agent growth

Yahoo Finance Video

December 4, 2025

In this video:

CRM

+1.40%

Salesforce (CRM) stock is popping in Wednesday’s extended hours after the CRM (customer relationship management) operator outpaced Wall Street’s third quarter estimates for adjusted earnings ($3.25 per share vs expectations of $2.86) while falling just shy of revenue forecasts ($10.26 billion vs. expectations of $10.28 billion).

Yahoo Finance tech editor Dan Howley helps Josh Lipton dive into the earnings release as the agentic AI company raises its full-year revenue forecast.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime.

Video Transcript

00:00 Speaker A

We’re turning now to Salesforce. That company’s third quarter results just hitting the wire, and Yahoo Finance is Dan Howley has a look at the numbers. Dan.

00:10 Speaker B

Yeah, Josh, they were up more than 5% uh uh for the for the moment uh and now they’re back down, just up uh, you know, more than 3%. Uh they beat uh on the uh rev uh excuse me, earnings per share. Uh that came in at 325. The expectation was 286, but they were just at the expectation level of 10.3 billion, you know, give or take a few, uh million for revenue. Now, uh the big deal here is the outlook, Q4 Outlook. The expectation was for 10.9% uh 10.9 billion, excuse me. Uh they see between 11.13 and 11.23 billion. Some of the numbers worth going over, uh they’re seeing agent force and data 360 annual recurring revenue coming in at 1.4 billion, that’s up 114% year over year. They also said that the annual recurring revenue for agent force uh surpassed half a billion in Q3, that was up 333% uh year over year. They also say they now have 9500 paid agent force deals uh and that they’re processing 3.2 trillion tokens. Uh this is all incredibly important for Salesforce’s, you know, the idea that uh AI would come for software and and kind of eat it for lunch uh has been a big concern and whether or not they could get their uh customers to buy into the idea of AI agents. And so that’s why the the whole idea of agent force uh getting that huge growth, that 330% is so important. And so, you know, obviously investors liking what they see, uh kind of, you know, not necessarily going sideways, but going up and down a bit. Uh but but still a very good quarter for Salesforce here.

02:00 Speaker A

You know again, you look at the stock moving higher in the after hours, but heading into the into the print, I mean, this was this was not good. This this stock year to date had been shelled. It was down about 30%. Now, analysts are broadly, they’re still bullish about 80%, I, you know, seen here that they still it’s a buy. That includes Brent Till over Jeffries, friend of the show. I know Brent, long-term believer. He was telling his clients into the print, hey, he thinks they can reach double digit growth driven by agent force monetization. He’s looking long-term for improvements in the core. In terms of valuation after that drawdown, Dan, Bloomberg was noting, uh, shares have actually never been cheaper for Mark Benioff’s company, but but bottom line on this Salesforce debate, Dan, I mean, this bull bear debate. I’m just interested to get your your kind of take there. You know, you know, AI leader Dan, long-term or no, risk here of of AI displacement.

03:22 Speaker B

I think they’re they’re they’re in a good position to grab share or at least ensure that they continue to stay in the space thanks to uh their agent force products. And so that’s going to be the kind of driving force uh likely moving forward at least as, you know, as far as the street goes, uh especially with their intense focus on or its rather intense focus on AI anything. You know, if a company isn’t in the AI space, they get hammered for it. Uh but especially a, you know, enterprise software offering. Uh and so Salesforce obviously, you know, they Microsoft seemed like, I mean it came out with AI attached to its products relatively quickly thanks to its open AI uh agreements. You know, Google’s been slowly getting into the space, but nothing near what, you know, Salesforce is is capable of. Uh and so the fact that they have agent force, they appear to be uh growing it well. I mean that what uh 9,500 paid accounts, it’s not anything to sneeze at. Uh and so, you know, I think that they’re they’re clearly on a a good path here. We just have to see if the the street continues to agree and you know, it’s not as though agent force is necessarily, you know, just came out this past quarter. Uh there’s been a a lot of kind of, as you said, consternation as to where this goes and seemingly it’s going the right way.

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