Shares of Salesforce (CRM 2.10%) were among the winners last month as the software-as-a-service (SaaS) giant beat expectations on the bottom line in its third-quarter earnings report and as it raised its guidance.
Salesforce also touted strong backlog growth and the continued expansion of its Agentforce AI platform. According to data from S&P Global Market Intelligence, the stock finished the month up 16%. As you can see from the chart below, nearly all of the stock's gains came on the earnings report at the beginning of the month.
Salesforce's big beat
Nearly all of Salesforce's gains last month came from its earnings report as the stock jumped 3.7% on Dec. 4 in response to the report and tacked on another 5.3% the following day as analysts cheered the move.
Salesforce's growth on the top line was relatively modest, with revenue up just 8.6% to $10.26 billion, which matched estimates. On the bottom line, adjusted earnings per share rose from $2.41 to $3.25, which beat estimates at $2.86, though that was primarily because of gains from strategic investments and losses the year before. Adjusted operating income, which may be a better reflection of profitability, rose from $3.12 billion to $3.63 billion.
Elsewhere, the company said that Agentforce and Data 360 annual recurring revenue (ARR), two strategic AI priorities, were up 114% to $1.4 billion. Remaining performance obligations (RPO), a reflection of backlog, rose 12% to $59.5 billion.
The company also raised its revenue guidance for the year to $41.45 billion-$41.55 billion, up 9%-10%, and it expects adjusted earnings per share of $3.02-$3.04 in the fourth quarter, which compared to the consensus at $3.04.
The stock traded sideways over the rest of the month, though the company did have some positive announcements, including signing a deal with Novartis for Salesforce Agentforce Life Sciences, and benefiting from an easing of broader AI headwinds.
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What's next for Salesforce
2026 is setting up to be another strong year for AI stocks, and it could be the biggest test yet for products like Agentforce, as attention should start to shift toward software in the AI sector.
Salesforce's overall growth rate is expected to be modest, but it can win over more investors with strong growth from Salesforce. The stock also looks affordably priced, especially compared with its big-tech peers. If it continues finding success in AI, the stock should move higher this year.
