Salesforce Shares Surge as AI Investment Bears Fruit

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The third-quarter earnings report for Salesforce's 2026 fiscal year delivered a powerful one-two punch: robust financial performance and, for the first time, concrete evidence that its artificial intelligence bet is generating significant revenue. The cloud software leader's disclosure that its new AI platform, Agentforce, has already achieved over $500 million in annual recurring revenue served as the catalyst for a positive market reaction on Thursday.

San Francisco-based Salesforce posted adjusted earnings per share of $3.25 for the quarter, comfortably surpassing the average analyst estimate of $2.86. Revenue advanced 9% to reach $10.3 billion. Demonstrating further confidence, management raised its full-year guidance for fiscal 2026, now projecting revenue between $41.45 billion and $41.55 billion.

Profitability metrics also showed strength. Operating cash flow grew 17% to $2.3 billion, while free cash flow jumped 22% to $2.2 billion. The company's adjusted operating margin hit 35.5%, indicating that Salesforce is managing to grow profitably even amid substantial investments in its AI initiatives.

Agentforce Emerges as a Key Growth Engine

The standout detail from the earnings release was the financial transparency around Agentforce. The autonomous agent solution has rapidly accrued more than $500 million in annual recurring revenue (ARR). When combined with the Data Cloud platform, this segment now boasts nearly $1.4 billion in ARR, representing a staggering 114% year-over-year increase.

CEO Marc Benioff provided additional context, noting that the company has already secured more than 9,500 paying Agentforce deals—a 50% increase from the prior quarter. The platform processed over 3.2 trillion tokens during Q3. These figures suggest that enterprise clients are moving beyond experimentation and are actively deploying the AI technology into their operations.

Market Analysts React and the Road Ahead

Investment banks responded favorably to the results. RBC Capital maintained its "Sector Perform" rating with a $250 price target. Meanwhile, Piper Sandler (rating: "Overweight," target: $315) and Cantor Fitzgerald (rating: "Overweight," target: $325) reaffirmed their bullish stances. Cantor Fitzgerald specifically highlighted the company's strong pipeline of contracted revenue.

The fourth quarter is historically Salesforce's strongest sales period. By raising its annual forecast, the leadership team signals belief that the momentum behind Agentforce will continue through year-end. The coming months will reveal whether this AI strategy can deliver sustainable long-term growth and if the equity can close its recent performance gap relative to the broader technology sector.