Salesforce stock jumped more than 9% on Wednesday, reaching $363.42 per share, following the company’s impressive third-quarter earnings report that showcased both strong financial performance and the promising debut of its new Agentforce AI platform. The enterprise software giant reported $9.44 billion in revenue, representing 8% annual growth and exceeding analyst expectations of $9.34 billion.
Net income climbed 25% year-over-year to $1.5 billion, up from $1.2 billion in the same quarter last year. The company also provided optimistic fourth-quarter guidance, projecting fiscal sales between $9.9 billion and $10.10 billion, aligning closely with analyst expectations of $10.05 billion.
CEO Marc Benioff attributed the exceptional performance to Agentforce, the company’s newly launched AI-powered platform that enables enterprises to build customized AI agents. These agents represent a significant advancement over traditional chatbots, offering more sophisticated customer interactions and seamless integration with Salesforce’s core customer-relationship-management (CRM) software.
“Agentforce, our complete AI system for enterprises built into the Salesforce Platform, is at the heart of a groundbreaking transformation,” Benioff stated, emphasizing that the tool is “revolutionizing global labor” and “reshaping how industries operate and scale.”
Wall Street analysts responded enthusiastically to the earnings call, with several firms raising their price targets substantially. Wedbush Securities analysts, led by Dan Ives, increased their target from $375 to $425, declaring that “the AI Revolution is entering the software phase into 2025” and that Salesforce has now joined the forefront of the AI transformation. They cited strong early demand for Agentforce as evidence of robust AI growth ahead.
RBC Capital Markets raised their target from $300 to $420, though they cautioned that while Agentforce commentary was encouraging, actual revenue materialization would take time. They expressed skepticism about near-term subscription growth impact, warning of a potential “mismatch with high investor expectations.”
UBS analysts noted that beyond Agentforce excitement, the overall optimistic tone of the earnings call suggested improving spending trends across the broader software industry, mirroring positive signals from competitors like ServiceNow, Datadog, and Snowflake.
Key Quotes
We delivered another quarter of exceptional financial performance across revenue, margin, cash flow, and cRPO. Agentforce, our complete AI system for enterprises built into the Salesforce Platform, is at the heart of a groundbreaking transformation.
CEO Marc Benioff made this statement in the earnings announcement, directly linking the company’s strong financial results to its new AI platform and positioning Agentforce as central to Salesforce’s future strategy.
The rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale. With Agentforce, we’re not just witnessing the future—we’re leading it, unleashing a new era of digital labor for every business and every industry.
Benioff’s bold declaration frames Agentforce as a transformative force in the workplace, suggesting AI agents will fundamentally change how businesses operate and compete, positioning Salesforce at the forefront of this shift.
We believe the AI Revolution is entering the software phase into 2025 and CRM and Benioff have now been let through the velvet ropes onto the dance floor for the AI Revolution Party.
Wedbush Securities analysts Dan Ives and team used this colorful metaphor after raising their price target to $425, indicating that Salesforce has successfully transitioned from AI observer to AI leader, with strong growth potential ahead.
What stood out to us was the tone uptick in terms of the underlying demand trends, a subtle shift in tone. This is interesting and we think supports a view that overall software spending trends may finally be perking up.
UBS analysts highlighted this observation, suggesting that Salesforce’s optimistic outlook reflects broader improvement in enterprise software spending, which could benefit the entire industry beyond just AI-specific products.
Our Take
Salesforce’s earnings beat represents a critical validation point for enterprise AI, demonstrating that AI agents can drive tangible business results rather than remaining experimental features. The 9% stock surge reflects investor recognition that Salesforce has successfully positioned itself in the AI-powered enterprise software race, competing effectively against Microsoft, Google, and other tech giants.
What’s particularly significant is the integration strategy—Agentforce isn’t a standalone product but deeply embedded in Salesforce’s existing CRM ecosystem. This creates powerful network effects and switching costs that could accelerate adoption. The cautionary notes from RBC about revenue timing are important, however, as they highlight the gap between AI enthusiasm and actual monetization. The broader implication is that we’re witnessing the enterprise AI market mature from hype to implementation, with Salesforce emerging as a potential leader in the autonomous agent category that could reshape customer service and sales operations across industries.
Why This Matters
This development marks a pivotal moment in enterprise AI adoption, demonstrating that AI tools are transitioning from experimental technology to revenue-driving products for major software companies. Salesforce’s success with Agentforce validates the business case for autonomous AI agents that can handle complex customer interactions without human intervention.
The strong market response—both in stock performance and analyst upgrades—signals growing investor confidence that enterprise AI applications will drive the next phase of software industry growth. This matters because it suggests businesses are moving beyond AI experimentation to actual deployment and spending.
For the broader economy, Agentforce represents the automation of knowledge work at scale, potentially transforming how companies handle customer service, sales, and support functions. The tool’s integration with existing CRM systems lowers adoption barriers, making enterprise AI more accessible to businesses of all sizes. The positive tone from analysts about overall software spending trends also suggests a potential thaw in enterprise technology budgets, which could accelerate AI adoption across industries and reshape workforce dynamics in customer-facing roles.
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