As Salesforce Inc. (NYSE:CRM) prepares to report its third-quarter earnings, the narrative is split between a management team touting a “record year” and a partner ecosystem signaling caution.
The stock is caught in a tug-of-war: Bulls point to surging AI metrics and disciplined execution, while Partners report “gradual” adoption and shrinking pipelines, setting the stage for a tense third-quarter print.
Check out CRM’s stock price here.
The Bull Case: The AI Flywheel Is Spinning
Management enters the third quarter armed with data to support their “Agentic Enterprise” pivot. In the second quarter, Salesforce reported a massive 120% year-over-year growth in its Data Cloud and AI portfolio, reaching $1.2 billion in annual recurring revenue (ARR).
CEO Marc Benioff has championed the company’s swift transition from “chatbot” experiments to real-world deployment, citing a 60% quarter-over-quarter increase in customers moving from pilot to production.
With over 12,500 Agentforce deals signed — 6,000 of them paid — bulls believe the “flywheel” effect is real and will drive long-term margin expansion.
See Also: Salesforce’s Agentforce AI, Data Cloud Strengthen Long-Term Growth Potential: Analyst
The Partner Reality: ‘Gradual’ Adoption & ‘Pilot Purgatory’
Despite the corporate optimism, channel checks paint a grimmer picture. Partners refer to third-party consulting firms, system integrators (SIs), and independent software vendors (ISVs) that help businesses implement, customize, and manage Salesforce software.
According to a partner survey by Guggenheim, the “net score” of partners exceeding their targets dropped significantly from 26 in the prior quarter to 16, signaling deteriorating sentiment.
Partners describe an environment of “pilot purgatory,” where customers remain stuck in experimentation mode rather than committing to large-scale deployments.
Wells Fargo analysts note that even when Agentforce is adopted, it is often “ring-fenced” to one or two isolated use cases, limiting immediate revenue impact.
The primary bottleneck remains data quality, with partners citing “dirty data” as a major hurdle preventing effective AI deployment.
Q3 Financial Expectations: A ‘Show Me’ Quarter
Wall Street expects a “muted” or “in-line” quarter, with limited organic upside.
Revenue: Analysts forecast third-quarter revenue of approximately $10.27 billion, representing ~8.7% year-over-year growth. EPS: Analysts expect earnings of $2.58 per share, as per Benzinga Pro. Margins: Non-GAAP operating margins are expected to hold steady at roughly 34.1%, reflecting Salesforce’s disciplined cost management. Informatica Impact: The recent acquisition of Informatica, closed in mid-November, is expected to add approximately $350 million to the fourth quarter revenue, potentially muddying the waters for organic growth visibility in the upcoming guidance.
Investors will be laser-focused on whether Benioff’s “agentic” vision can bridge the gap between enthusiastic press releases and the “contracting pipelines” reported by the partners who implement the technology on the ground.
CRM Tumbles 29% In 2025
CRM closed 0.81% higher at $234.71 apiece on Tuesday and 0.55% in after-hours. It has declined by 29.02% year-to-date and 29.18% over the year.
It maintains a weaker price trend over the short, medium, and long terms, with a solid growth ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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