Salesforce Delivers Robust Q3 Results: Strong Revenue and Margins
Highlights
- Q3 Revenue: $10.26B (+9% YoY)
- Non-GAAP Operating Margin: 35.5%
- CRPO: $29.4B (+11% YoY)
- RPO: Near $60B (+12% YoY)
- Operating Cash Flow: $2.3B (+17% YoY)
- Free Cash Flow: $2.2B (+22% YoY)
- AgentForce ARR: $540M (+330% YoY)
- Data 360 ARR up 100% YoY
- Informatica revenue contribution: 80bps
In a notable performance, Salesforce presented its fiscal 2026 third quarter results, showcasing substantial growth across several key metrics that strengthen its market position, particularly in AI-driven innovations.
Revenue and Profitability Surge
Salesforce announced a third-quarter revenue of $10.26 billion, marking a 9% increase year over year. The company's strong top-line growth was complemented by a substantial operating efficiency, as highlighted by a non-GAAP operating margin of 35.5%. Impressively, current remaining performance obligation (CRPO) stood at $29.4 billion, reflecting an 11% rise from the previous year. This surge indicates robust future revenue streams as customers increasingly commit to Salesforce’s ecosystem.
Operating cash flow escalated by 17%, reaching $2.3 billion, while free cash flow jumped 22% to $2.2 billion. These figures underline Salesforce's capital efficiency and ability to generate liquidity, driven by expanding enterprise engagements and strategic investments.
AI-Driven Platforms Propel Growth
AgentForce, the company’s AI-powered platform, significantly contributed to its performance, with annual recurring revenue (ARR) hitting $540 million, up 330% year over year. Salesforce's Data 360, integral to its AI offerings, also saw a 100% increase in ARR, underscoring how data integration innovations are pivotal to its future growth trajectory.
The acquisition of Informatica adds another layer of revenue augmentation, poised to contribute approximately 80 basis points to the company’s growth, further solidifying Salesforce's competitive advantage in the data cloud market.
A Strategic Position in the Market
Salesforce's diverse cloud suite and commitment to AI innovations have positioned it distinctly in the marketplace, evident in its robust revenue increase and heightened customer adoption rates. As more enterprises transition to the Agentic Enterprise model, Salesforce's comprehensive approach to cloud solutions and strategic investments in AI continue to pay dividends, cementing its role as a leader in enterprise software solutions.