Earnings Preview: Powered by AI, Salesforce eyes a strong finish to FY25

Customer relationship management platform Salesforce, Inc. (NYSE: CRM) is expected to report fourth-quarter earnings on February 26, after the closing bell. The company is in the midst of a major transformation, reorganizing its operations as part of AI integration.

After retreating from a record high in early December, the movement of Salesforce’s stock has been sluggish, and the weakness continued in the run-up to the earnings. However, the valuation is on the higher side, with the stock price nearly doubling in the past two years. Given the company’s growth prospects and strong market position, CRM remains an attractive long-term investment.

Estimates

When the tech firm reports its fourth-quarter earnings on February 26, at 4:00 pm ET, Wall Street will be expecting earnings of $2.61 per share. In the year-ago quarter, the company earned $2.29 per share, on an adjusted basis. It is estimated that Q4 revenues grew about 8% annually to $10.04 billion. The Salesforce leadership expects earnings per share to be in the range of $2.57 to $2.62 in the fourth quarter, on estimated revenues of $9.90-10.10 billion.

For the whole of fiscal 2025, the management forecasts revenues between $37.8 billion and $38.0 billion, and adjusted profit in the range of $9.98 per share to $10.03 per share. Having launched an advanced version of Agentforce, its autonomous AI application that provides specialized support to customers, the company is confident about its prospects as a transformative digital labor technology. Interestingly, Agenetforce has been integrated into almost all of Salesforce’s platforms including Tableau and Slack.

Q3 Outcome

In the third quarter of 2025, revenues grew 8% year-over-year to $9.44 billion, aided by an impressive performance by the core Subscription & Support business segment. The top line exceeded estimates. Earnings, excluding special items, increased sharply to $2.41 per share in Q3 from $2.11 per share in the same period last year. Earnings missed estimates for the first time in more than a decade. On an unadjusted basis, the company reported a profit of $1.53 billion or $1.58 per share for the October quarter.

Recently, Salesforce appointed Robin Washington as president and chief operating and financial officer. Robin will assume the new role on March 21, 2025, replacing long-time veteran Brian Millham.

From Salesforce’s Q3 2025 earnings call:

“This is the market for digital labor. And Salesforce has become right out of the gate here, the largest supplier of digital labor, and this is just the beginning and it’s all powered by these autonomous AI agents. All of you know that. This is fundamentally reshaping how businesses operate. It’s fundamentally reshaping how we operate our business and how we think about the industry itself and how you’re thinking about the industry, how we’re thinking about Salesforce. And with Salesforce Agentforce, we’re not just imagining this future, we’re already delivering it.”

After beginning the week on a positive note, Salesforce’s shares experienced weakness on Wednesday and slid about 1.5% by the afternoon. However, it remains well above the 12-month average price.