Skip to content
    CRM
    Earnings call· Oct 2025(Q3 FY26)

    Salesforce, Inc. CRM

    Dec 3, 2025 Source

    Executive summary

    Salesforce Q3 FY26 — Strong Agentforce Adoption and Bookings

    Salesforce delivered strong Q3 FY26 results, driven by accelerating Agentforce adoption and robust bookings, signaling a strong pipeline for future revenue. The company is leveraging its data foundation, including the early acquisition of Informatica, to power its agentic enterprise vision. Strategic investments in sales capacity and product innovation are positioning Salesforce for continued profitable and durable growth.

    Highlights

    7
    • Q3 revenue reached $10.26 billion, up 9% year-over-year (8% in constant currency).

    • Non-GAAP operating margin was strong at 35.5%, an increase of 240 basis points year-over-year.

    • Current remaining performance obligation (cRPO) was $29.4 billion, up 11% year-over-year (11% in constant currency), marking the best quarter in three years.

    • Operating cash flow was $2.3 billion, up 17% year-over-year, and free cash flow was $2.2 billion, up 22% year-over-year.

    • Agentforce and Data ARR reached nearly $1.4 billion, up 114% year-over-year, with Agentforce ARR specifically growing 330% year-over-year to $540 million.

    • Over 18,500 Agentforce deals were closed, with 9,500 paid transactions, representing a 50% quarter-over-quarter increase.

    • Customers in production with Agentforce jumped 70% quarter-over-quarter, indicating strong adoption.

    Concerns

    3
    • Revenue was partially offset by a faster-than-anticipated mix shift to cloud for Tableau and on-prem revenue timing in Tableau and MuleSoft.

    • Asia Pacific growth was constrained, particularly in Australia and India.

    • Performance in the communications and media, manufacturing, automotive, and energy industries was more measured.

    Guidance & targets

    11
    CategoryTargetConfidence
    FY26 Organic Subscription and Support Growth
    approximately 9%
    high materiality
    High
    FY26 Total Subscription and Support Growth (inclusive of Informatica)
    slightly under 10%
    high materiality
    High
    FY26 Organic Total Revenue
    $41.15 billion to $41.25 billion
    high materiality
    High
    FY26 Total Revenue (inclusive of Informatica)
    $41.45 billion to $41.55 billion
    high materiality
    High
    FY26 Non-GAAP Operating Margin
    34.1%
    high materiality
    High
    FY26 GAAP Operating Margin
    20.3%
    high materiality
    High
    FY26 Operating Cash Flow Growth
    approximately 13% to 14%
    high materiality
    High
    FY26 Free Cash Flow Growth
    approximately 13% to 14%
    high materiality
    High
    Q4 FY26 Organic cRPO Growth
    approximately 11% nominal, 9% constant currency
    high materiality
    High
    Q4 FY26 Total cRPO Growth (inclusive of Informatica)
    approximately 15% nominal, 13% constant currency
    high materiality
    High
    Revenue Reacceleration
    on track
    high materiality
    High

    Operational metrics

    40
    Non-GAAP operating margin
    35.5%up 240 bps YoY
    Q3 FY26

    Strong performance driven in part by timing of expenses and a bad debt expense adjustment.

    Revenue attrition
    approximately 8%in line with recent trends
    Q3 FY26

    Ended the quarter at approximately 8%.

    Net new AOV growth
    outpaced AOV growthfirst time since FY22
    Q3 FY26

    For the first time since fiscal year 2022, net new AOV growth outpaced AOV growth.

    Agentforce One addition and A for X new bookings
    doubledQoQ
    Q3 FY26

    Our most premium SKU doubled quarter-over-quarter.

    Agentforce accounts in production
    increasedQoQ
    Q3 FY26

    Our consumption flywheel is spinning. Agentforce accounts and production increased quarter-over-quarter.

    Agentforce bookings from existing customers
    more than 50%
    Q3 FY26

    More than 50% of Agentforce bookings came from existing customers refilling the tanks.

    Agentforce and Data 360 ARR
    $1.4 billionup 114% YoY
    Q3 FY26

    Agentforce and Data reached nearly $1.4 billion in ARR in the quarter, up 114% year-over-year.

    Agentforce ARR
    $540 millionup 330% YoY
    Q3 FY26

    Inclusive of Agentforce ARR, which is up 330% year-over-year.

    Agentforce deals closed
    18,500
    Q3 FY26

    Just a year since we introduced Agentforce, we've closed over 18,500 Agentforce deals.

    Agentforce paid transactions
    9,500up 50% QoQ
    Q3 FY26

    9,500 of them are paid transactions, it's up 50% quarter-over-quarter.

    Agentforce LLM calls
    1.2 billion
    Q3 FY26

    Agentforce has powered 1.2 billion large language model calls, that's interactions when agents invoke a model to understand contacts and decide the next best action.

    Agentforce LLM calls (top 50 customers)
    more than 200 million
    Q3 FY26

    More than 200 million Agentforce LLM calls in Q3 alone, on track to power another 2 billion over the next year.

    Agentforce average weekly actions
    140%QoQ
    Q3 FY26

    The number of average weekly actions has now risen about 140% Q-ver-Q.

    Agentforce tokens processed
    3.2 trillion
    Q3 FY26

    Agentforce has processed more than 3.2 trillion tokens. So 3.2 trillion tokens of LLM gateway so far.

    Agentforce token usage (October)
    540 billionup 25% MoM
    October

    In October alone, token usage was nearly $540 billion, up 25% month-over-month.

    Data 360 records ingested
    32 trillionup 119% YoY
    Q3 FY26

    In Q3, Data 360 ingested 32 trillion records, up 119% year-over-year.

    Data 360 zero-copy data integration
    15 trillionup 341% YoY
    Q3 FY26

    Includes 15 trillion through zero-copy data integration up 341% year-over-year.

    Data 360 unstructured data ingest
    38%QoQ
    Q3 FY26

    Just on ingest, for example, in quarter-over-quarter on Data 360, people have built their lake, just in Data Cloud, our ingest has increased by 38%, and zero-copy has increased by 52% growth in terms of records. But this is unstructured data. So it's just not the structured data. It's all your documents, all your knowledge articles, all your user manuals. That has increased by 109% growth.

    Salesforce employees using Slack (GM)
    96,000scaled in 9 months
    Q3 FY26

    Slack is now the company's primary communications hub, scaling to 96,000 employees in just 9 months.

    Agentforce ITSM projected operational expense reduction
    30%
    Q3 FY26

    PenFed went live with ITSM with agents for IT service as well as member service and collections, they're projecting a 30% reduction in operational expenses.

    Agentforce ITSM projected savings
    $2 million
    Q3 FY26

    PenFed went live with ITSM with agents for IT service as well as member service and collections, they're projecting a 30% reduction in operational expenses and $2 million in savings with this product is killer.

    Life Sciences Cloud new bookings
    triplingYoY
    Q3 FY26

    In Life Sciences cloud and with Life Sciences cloud, with new bookings tripling year-over-year.

    Public Sector Solutions ARR
    50%YoY
    Q3 FY26

    Our Public Sector Solutions ARR also grew 50% year-over-year in Q3.

    IRS manual activities automated
    up to 98%
    Q3 FY26

    The office of the Chief Counsel has automated up to 98% of manual activities.

    IRS tax court case opening time reduction
    10 days to 30 minutes
    Q3 FY26

    Decreasing the time to fully open a tax court case from 10 days to 30 minutes.

    IRS legacy system savings
    500,000 minutes
    year

    Another division saving an estimated 500,000 minutes a year retiring multiple legacy systems.

    UK AI police officer non-emergency demand reduction
    20%
    Q3 FY26

    Police departments have already seen a 20% reduction in nonemergency demand.

    Top 100 wins including 5+ clouds
    More than 70%
    Q3 FY26

    More than 70% of our top 100 wins included 5 or more clouds.

    Pipeline generation
    double-digit growth
    Q3 FY26

    Q3 was one of our biggest pipeline generation quarters ever and customers leveraging our forward-deployed engineers are seeing 33% faster deployment times.

    Open pipeline
    double-digit healthy growth
    Next year

    Next year, pipeline -- open pipeline is, again, double-digit healthy growth on open pipeline.

    Sales capacity increase
    23%
    as of call date

    We have now, today, 20% more capacity in place. We're going to finish the year with 15% more capacity, enabled already, we call it ramped.

    Customers refilling Agentforce tank
    362vs 3 in Q1
    Q3 FY26

    In Q3, 362 customers refill the tank. That's an incredible testimony of the success that Agentforce is having in a very short time frame.

    Agentic Enterprise License Agreements (AELA)
    16
    Q3 FY26

    We did 16 ILS in agentic enterprise license agreement. In Q3, we have about 100 ILs in the pipeline, and all these are multimillion-dollar deals.

    Agentforce for Sales/Service (seat-based SKU) sales
    doubled
    YoY

    We've sold a lot of seat-based licenses for Agentforce and data cloud in Q3. In fact, that SKU has doubled year-on-year.

    Deployment times with forward-deployed engineers
    33%
    Q3 FY26

    Customers leveraging our forward-deployed engineers are seeing 33% faster deployment times.

    STR agent leads worked
    hundreds of thousands
    Q3 FY26

    As Customer Zero, our STR agent, has worked hundreds of thousands of leads.

    STR agent incremental pipeline generated
    tens of millions
    Q3 FY26

    Generating tens of millions in incremental pipeline.

    help.salesforce.com conversations
    2 milliondoubled in half the time of first million
    Q3 FY26

    help.salesforce.com, which passed 2 million conversations this quarter. It took 9 months to reach the first million and just half that time to double it.

    Share repurchases
    $4 billion
    Q3 FY26

    We also returned more than $4 billion to shareholders in Q3.

    Share repurchases step-up
    50%
    H2 FY26

    We are on track for a 50% step-up in share repurchases in the second half of this fiscal year.

    Industry KPIs

    11
    MetricValueDetails
    Capacity CAPEXslightly below 2%% of revenue
    Revenue growth$10.26 billionUSD
    Arr net new arr$1.4 billionUSD
    Rpo current rpo$29.4 billion (cRPO), nearly $60 billion (total RPO)USD
    Bookings billings$29.4 billionUSD
    Pricing model mixdoubledgrowth
    Customer account count150,000+companies
    Large deal new logo metrics70%%
    Multi product platform attach70%%
    Operating FCF margin rule of 4035.5%%
    Ai product adoption monetization1.2 billioncalls

    Orderbook & backlog

    2
    Current Remaining Performance Obligation (cRPO)$29.4 billionQ3 FY26 end

    up 11% YoY nominal and constant currency

    Includes a $200 million foreign exchange tailwind; better-than-expected performance driven by strong bookings and a modest benefit from early renewals and the timing of on-prem revenue.

    Remaining Performance Obligation (RPO)nearly $60 billionQ3 FY26 end

    up 12% YoY

    Product announcements

    3
    ProductTypeDetails
    Agentforce IT Service (ITSM)launch
    Bobby (UK AI police officer)launch
    Slackbotlaunch

    Deals & partnerships

    17
    InformaticaAcquisition to strengthen data foundation for AI.

    Acquisition completed 3 months ahead of schedule. Integrates with Data 360 and MuleSoft to enhance data layer, crucial for delivering accurate AI context and reducing hallucinations. Expected to contribute to a $10 billion data business next year.

    CVS HealthCustomer adopting Agentforce.

    CVS Health is becoming an agentic enterprise with Agentforce.

    Telecom ArgentinaCustomer adopting Agentforce.

    Telecom Argentina is becoming an agentic enterprise with Agentforce.

    TD BankCustomer adopting Agentforce.

    TD Bank is becoming an agentic enterprise with Agentforce.

    IRSCustomer adopting Agentforce.

    The IRS is becoming an agentic enterprise with Agentforce, optimizing, automating, and accelerating business processes across the agency.

    NGCustomer adopting Agentforce.

    NG is becoming an agentic enterprise with Agentforce.

    CostcoExpansion of AI and digitization.

    Significant expansion for Salesforce, driving AI and digitization across Costco's operations for its members, in collaboration with Google.

    General MotorsExpansion across automotive cloud, data, and AI products.

    Expanding Salesforce across Automotive Cloud, Data 360, MuleSoft, Agentforce Sales, and Agentforce Service. Also adopting Slack as the company's primary communications hub, scaling to 96,000 employees in 9 months. Agentforce is speeding up case resolution for call centers.

    PenFedGo-live with Agentforce ITSM and member service.

    Went live with Agentforce IT Service (ITSM) as well as member service and collections.

    HelionNew win for Life Sciences Cloud.

    A notable new win for Life Sciences Cloud, contributing to market share gains against Veeva.

    NovartisAdoption of Life Sciences Cloud.

    Novartis has gone with Salesforce Life Sciences Cloud.

    PfizerEarly adopter of Life Sciences Cloud.

    Pfizer was one of the first to adopt Life Sciences Cloud.

    Air ForceGovernment agency running critical workflows on Salesforce.

    The Air Force is running its business and critical workflows on Salesforce.

    ArmyGovernment agency using Agentforce Sales.

    The Army, led by Dan Driscol, delivered its recruiting goals 9 months early using Agentforce Sales.

    Department of AgricultureGovernment agency running critical workflows on Salesforce.

    The Department of Agriculture is running its business and critical workflows on Salesforce.

    Veterans AffairsGovernment agency running critical workflows on Salesforce.

    Salesforce runs the entire Veterans Affairs system with 120 applications, improving service and support for veterans.

    UK police departmentsDeployment of AI police officer 'Bobby'.

    Working with multiple police departments to roll out 'Bobby,' an Agentforce Service agent for non-emergency calls.

    Risks & headwinds

    4
    FX headwindsince last quarter

    $25 million

    On-prem revenue timingquarter-over-quarter

    less predictability

    Asia Pacific market constraintQ3 FY26

    constrained

    Industry-specific measured performanceQ3 FY26

    more measured

    What to watch in Q4 FY26

    5

    Agentforce and Data 360 ARR growth

    Next quarter
    CurrentUp 114% YoY to ~$1.4 billion
    TargetContinued strong growth, especially from existing customers

    Why it matters

    Indicates sustained adoption and monetization of key AI offerings.

    Agentforce and Data reached nearly $1.4 billion in ARR in the quarter, up 114% year-over-year, including Agentforce ARR of about $540 million, 330% year-over-year.

    Q&A highlights

    6

    How does Salesforce address investor concerns that generative AI will lead enterprises to DIY solutions, potentially harming SaaS application layers like Salesforce, given the observed inflection in Salesforce's business?

    Miguel Milano stated that customers are moving from AI experimentation to frustration, realizing the difficulty of DIY solutions. He emphasized that successful enterprise AI requires context (data, metadata), deterministic workflows, and embedded AI where humans work, which only Salesforce can provide. He highlighted a new 'agentic enterprise' secular demand trend, leading to increased demand and significant bookings growth.

    They've gone from experimentation now to frustration a little bit. And now they are all saying, you know what, this is hard. This is much harder than we thought.

    asked by Keith Weiss · answered by Miguel Milano

    2 min read6 chapters

    Detailed Narrative

    01

    Agentic Enterprise Vision and AI Adoption

    Marc Benioff highlighted the company's focus on the 'Agentic Enterprise,' where humans, data, AI, and applications converge to drive productivity and efficiency. He noted that CEOs are increasingly motivated to adopt AI, moving beyond initial DIY experimentation to seeking integrated solutions. Agentforce, Salesforce's AI platform, is seeing rapid adoption, with 18,500 deals closed and 9,500 paid transactions, up 50% quarter-over-quarter. Customers in production with Agentforce jumped 70% quarter-over-quarter, demonstrating real-world usage and value.

    02

    Data Foundation and Informatica Acquisition

    Salesforce's data foundation, comprising Informatica, Data 360 (formerly Data Cloud), and MuleSoft, is projected to become a $10 billion business next year. The acquisition of Informatica was completed three months ahead of schedule, significantly strengthening this foundation. This integrated data layer is crucial for delivering accurate, reliable, and low-hallucination AI by providing essential context and enabling data federation, such as connecting Data 360 to IBM Mainframes.

    03

    Product Rebuilding and Integration for AI

    Srini Tallapragada explained that all Salesforce products, including Sales, Service, Marketing, Commerce, Tableau, and Slack, have been rebuilt to integrate Agentforce capabilities. This transformation positions Agentforce as a platform, allowing all applications to reason, learn, and take action with unified data and metadata. This foundational work, including Hyperforce and a rewritten metadata layer, facilitates the rapid development of new agentic applications like ITSM and Life Sciences Cloud.

    04

    Sales Capacity and Pipeline Generation

    Salesforce has significantly enhanced its distribution organization, increasing sales capacity by 23% for the year, with a projected 15% increase by year-end. This strategic investment, driven by anticipated demand for agentic solutions, is expected to yield substantial returns in future years across all six customer segments. The company reported strong double-digit growth in pipeline generation and open pipeline in Q3, exceeding expectations and contributing to the better-than-expected cRPO growth.

    05

    Agentforce Token Usage and LLM Gateway

    Agentforce has processed over 3.2 trillion tokens through its LLM gateway, with October usage alone reaching nearly 540 billion tokens, up 25% month-over-month. Salesforce emphasizes its ability to dynamically swap between various large language models (OpenAI, Gemini, Anthropic, open-source) based on cost and performance, positioning itself as a leading user of foundation models. This flexibility, combined with hybrid reasoning and agent scripting, optimizes cost and performance for customers.

    06

    Customer Success and Industry Momentum

    The call highlighted numerous customer wins and expansions, showcasing Agentforce's impact. Examples include Williams-Sonoma's 'Olive' agent handling 60% of chats, General Motors using Slack for 96,000 employees, PenFed projecting a 30% operational expense reduction with ITSM, and significant market share gains in Life Sciences Cloud against competitors like Veeva. Public Sector Solutions ARR grew 50% year-over-year, with the IRS automating up to 98% of manual activities using Agentforce.

    AI-generated summary of the company’s earnings call. Not investment advice.