💃 Salesforce 2025Q3 (FY2026Q3) Earnings Call 🕺

Good morning, Salesforce Nerds! Salesforce stock plummeted 16% in afterhours trading upon earnings numbers being published.

Shortly after, Marc and company had the pleasure of speaking on it in the quarterly earnings call.

All of your Salesforce 2025Q3 (FY2026Q3) Earnings Call highlights wrapped into a 4 minute burrito 🌯.

THE NUMBERS

Salesforce FY2025Q3 Earnings

Marc preceded the call with his usual Annual Earnings 📈 tweet

FY2026Q3

Revenue | $10.26 billion actual vs $10.27 billion expected, and an 8.6% YoY increase. A revenue miss and another < 10% YoY growth 🙁.

Earnings | $3.25 per share vs $2.86 expected 🥊

Also, Salesforce adjusted guidance for the current quarter (FY2026Q4) to $3.04 EPS and $11.23 billion revenue; up from $3.02 and $11.13 billion.

🤷‍♂️

Operating Margin increased to 34.1%, which is like 8 quarters in a row of increases 💪.

Afterhours trading was positive with a bump as high as 8% that is down to 3% at the time of this writing.

EVOLUTION

Salesforce Candy Shop

Besides the hilarious overuse of “Agentforce,” what do you notice about the chart?

It’s like sliced bread - even cuts all through the loaf 🍞.

Sales and Service are what the company was built on.

And now, “Slack + Other” are catching up at a rapid pace 🏎️! This segment has grown almost 3x since FY2021Q3 and is tracking to overtake Sales Cloud in the next fiscal year 😳.

Maybe everyone (including the ChaCha) had the $28BB Slack acquisition wrong and Marc knew exactly what he was doing?

Mule and Tableau will have their day 👀. But Experience and Commerce may not, those are spendy to use and not fun to implement (Commerce, specifically)!

If you have 3 kids, you want them all to be equally financially successful, right? It’s healthy for a company, especially at a $228BB market cap, to have a diverse set of products that all bring the skrilla 🤑.

And although Salesforce doesn’t have the range, the principle is still sound - look at Google and their insane product suite and revenues 🤯

POTPOURRI

Highlights, Callouts, and Commentary

The over-arching them of the call was “AI is taking us to the moon 🚀” but what else? Here are some highlights, callouts, and commentary-

🎥 Salesforce is using a new earnings presentation platform that is audio and video. A way better experience than their old platform that was just audio 💯.

🧠 They kept using big words, buzz words, all in the context of AI 🤖. I didn’t know what they meant! Do you? Deterministic. Federated. Zero copy. 😵‍💫

🤖 The way Marc talks about AI you’d think it’s already directly injected into our brains and we were living like the humans in Wall-E!

🤖 Agentforce continues to grow in both customer count and revenue…but it’s easy to grow from 0 a year ago 🤷‍♂️. The proof is in the pudding - the product needs to get better, cheaper, and, honestly, have a mega-success-story to take off to the moon 🚀.

🤖 Salesforce is (kinda) well-known for leveraging existing LLMs and Marc, perhaps because of a recent comment, made a thoughtful and strategic follow up that Salesforce believes (paraphrasing) “We love them all - Gemini, Anthropic, ChatGPT! We will interchange with what is the cheapest.” What a great line for an investor call 🧠.

🤖 We are so post-sales agent. Marketing agent. Service agent. Now we are in the Employee Agent era, according to Marc. Specifically, Slackbot is changing the game for employees, per Marc…

🤖 The best analyst question was a repeat of a “how do you prevent Agentforce from cannibalizing seat revenue?” And with the growing QoQ, YoY revenue, Salesforce is able to make the argument that “AI + Employee is the ultimate solution.” Combining the two is a win for the employee, AI, the customer and Salesforce.

🤖 The loyal ChaCha readers know you’re all feenin’ for an AI success story. Salesforce has Williams Sonoma and SharkNinja to offer, at this time. Do these scratch your success itch?

🤔 Loyal ChaCha readers may also be curious to know if a succession plan was mentioned? Nope! After 2 failed co-CEOs, it seems like Marc is keeping this strategy close to the vest. And it seems like the analysts in the Q&A session, who are incentivized to be friendly to gain access, are not going there 🤷‍♂️.

SOUL FOOD

Today’s Principle

and now....Your Salesforce Memes