By Katherine Hamilton
Salesforce raised its full-year guidance as its AI product, Agentforce, gained some traction.
Agentforce, which has been the main focus for many Salesforce investors, hit $540 million in annual recurring revenue during the third quarter. More companies, including Williams Sonoma and SharkNinja, are adopting the AI agent to use for customer service and internal operations, Chief Executive Marc Benioff told analysts Wednesday.
Shares advanced 3% to $245.45 in after-hours trading, a contrast from previous quarters this year when the stock declined following earnings calls. Despite consistently beating estimates with its financial results, Salesforce shares have lost 29% of their value this year, as investors remain unimpressed with Agentforce.
Salesforce raised its full-year revenue outlook to $41.45 billion to $41.55 billion, compared with a previous range of $41.1 billion to $41.3 billion. The new range would represent 9% to 10% sales growth.
It also now expects adjusted earnings per share to be $11.75 to $11.77, up from $11.33 to $11.37.
Agentforce, which uses large-language models to perform tasks, has been slow to gain commercial success, Deutsche Bank analysts said. Initial deal sizes for Agentforce remained relatively small in the low-six figures, the analysts said, as businesses are still figuring out ways to use the product.
Salesforce on Wednesday said it had closed 18,500 Agentforce deals since the product launched in October 2024, about half of which are paid deals. Of the company's top 10 biggest deals in the quarter, six were Agentforce transactions, Benioff said.
Agentforce accounts in production increased 70% quarter over quarter, Salesforce said. Half of Agentforce and data platform Data 360 bookings came from existing customer expansion.
Investors are interested in the product because they see it as a measure of how well Salesforce will keep up in an era dominated by artificial intelligence. Management said Wednesday that its top priority is increasing adoption of Agentforce and Data 360.
"We are relentlessly reallocating our resources to high-growth areas," Chief Financial Officer Robin Washington said.
Salesforce posted a profit of $2.09 billion, or $2.19 a share, for the third quarter ended Oct. 31, compared with $1.53 billion, or $1.58 a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were $3.25, ahead of the $2.86 anticipated by analysts, according to FactSet.
Revenue rose 9% to $10.26 billion. Analysts surveyed by FactSet forecast revenue of $10.27 billion.
In the fourth quarter, the company expects adjusted earnings per share of $3.02 to $3.04, with revenue of $11.13 to $11.23 billion. Wall Street is estimating $3.04 in adjusted earnings per share on $10.91 billion in revenue.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
December 03, 2025 18:10 ET (23:10 GMT)
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