By Zaheer Kachwala

(Reuters) – Salesforce surpassed Wall Street estimates for third-quarter revenue, prompting an 8% share price increase. The company raised its annual revenue forecast's lower limit.

Client spending on Salesforce's software and data cloud remains strong as businesses aim to enhance workflows and leverage AI. The company's revenue for the third quarter climbed 8% to $9.44 billion, outpacing the analyst average of $9.35 billion.

Salesforce focuses on its new Agentforce product to drive growth, similar to other tech firms developing AI agents. Analyst Charlie Miner noted that the success of Agentforce is crucial for future growth.

The Agentforce platform is supported by a performing data cloud, making it the fastest-growing organic product in Salesforce's history. The company plans to hire 1,400 employees in Q4 to meet the demand for Agentforce.

However, analysts believe Salesforce needs greater enterprise adoption to shift from single-digit to mid-teens percentage growth. Jeremy Goldman from Emarketer indicated that significant growth might not be achievable until fiscal year 2027 or later.

Salesforce now forecasts fiscal year 2025 revenue between $37.8 billion and $38 billion, slightly adjusted from the prior forecast. Adjusted earnings per share for Q3 were $2.41, slightly below the estimates of $2.44.