Why You Should Pay Attention to Salesforce Q3 Earnings Tomorrow

Salesforce’s third quarter report is coming out tomorrow, hot off the heels of Dreamforce, Agentforce, and steadily rising stock prices. 

Much hype has been building around the cloud giant recently, with the company’s press team eager to spread success stories of customers using their flagship AI product, Agentforce, to revolutionize their businesses. So what can we expect from tomorrow?

A Good Year for Salesforce?

People in the Salesforce ecosystem will most likely remember how Agentforce took center stage at Dreamforce 2024 just three months ago, providing an insight into what the future of the tech sector – and quite a few other industries – might look like with the help of autonomous AI agents. 

But it has not been entirely good news for the cloud giant this year.

Salesforce’s quarterly earnings report on May 29 sent the stock plunging 16% as the company missed its revenue forecast number for the first time since 2006. The company has consistently been a reliable growth stock throughout its history, so Wall Street suffered something of a shock amid this news. 

But Salesforce (CRM) stock has been steadily increasing since the sharp drop – and picking up pace since their AI product Agentforce was properly introduced to the world at Dreamforce 2024. 

To put things in perspective, on November 29 last year, CRM stood at $230.35. It had been gently rising over the following months, suffering a dip to around the $270 mark in April, before the drastic drop to just $218.01 on May 30, following the earnings report. 

But on November 27 this year, the stock stood at $330.01 – a massive 43% increase in a year and a price that seems to indicate the panic surrounding May’s missed revenue forecast figure has withered away. 

Salesforce’s third quarter fiscal year 2025 results will be released on Tuesday, December 3, 2024, after the close of the market. As is standard, the cloud giant will hold a conference call at 2 pm Pacific Time (5 pm Eastern Time) to talk about the financial results with investors. 

Whatever the results are, there are several factors that we in the ecosystem should bear in mind when reading through them…

The Bigger Picture

As outlined above, Salesforce stock dropped significantly earlier this year after they missed their forecast estimate. If this happens again, it would likely be much harder to wave this away as an anomaly, stroke of bad luck, or result of macroeconomic factors.

But the company, founded in San Francisco in 1999, has not survived (and thrived) for 25 years by remaining stagnant. Salesforce will likely understand that this is no ordinary earnings report – coming in the wake of May’s dramatic stock drop and their own apparent shift in focus to the world of artificial intelligence. 

While May’s stock drop was dramatic, taking a longer-range view of the CRM price reveals a more telling story. The $CRM stock has gone from $162.89 on November 29, 2019, to more than double that over a five-year period, standing at $330.01 on November 27, 2024. 

The cloud giant may well have adjusted their forecasts to be more realistic, but it might conversely be the case that Salesforce brings up their estimates due to improvements in the economy overall – and they now have a clearer idea of how easy the process of selling Agentforce deals is.

Final Thoughts 

Anyone in the Salesforce community should check in on how the ‘Mothership’ is doing each quarterly report, as these provide helpful insights that can assist in understanding the current state of the ecosystem. 

But, as outlined above, whichever way the results go, it’s important to bear in mind that they are simply another piece of the picture, and May’s less-than-ideal results didn’t stop the cloud giant from adding serious value to its stock over the following months.