Salesforce Q3 Earnings on Dec 3: Is CRM Stock Worth Holding Through the Report?

Salesforce is set to release its third-quarter fiscal 2026 earnings on December 3, with expectations for revenues in the $10.24-$10.29 billion range (consensus at $10.26 billion). The company is projecting non-GAAP EPS between $2.84-$2.86, significantly above the year-ago quarter’s levels. This upcoming Q3 earnings announcement comes as investors reassess whether CRM’s recent underperformance masks underlying strength in cloud software demand.

The Valuation Disconnect: Why CRM Looks Cheaper Than Peers

Despite Salesforce’s market leadership, the stock has declined 31.7% year to date, substantially lagging both the software industry’s 6.6% gain and rival performers. Oracle and Microsoft have returned 20.5% and 15.3% respectively, while SAP remains relatively flat at -2.5%.

The valuation picture tells a different story. CRM trades at a forward P/S multiple of 4.92X—a significant discount to the industry average of 7.39X. Compared directly to competitors, Salesforce’s multiple remains compressed: SAP trades at 6.25X, Oracle at 7.81X, and Microsoft at 11.53X. This valuation gap suggests the market may be pricing in execution risk despite the company’s operational strengths.

What Could Drive Q3 Performance Beyond Consensus

Several factors position Salesforce to potentially meet or exceed expectations in the Q3 earnings report. The company’s cloud services remain the growth engine—Sales, Service, Platform & Other, Marketing & Commerce, and Integration & Analytics divisions are estimated to deliver $2.3 billion, $2.49 billion, $2.07 billion, $1.4 billion, and $1.44 billion respectively. Subscription revenues should approximate $9.7 billion with Professional Services contributing roughly $560 million.

Generative AI adoption represents the most significant catalyst. By integrating Einstein GPT functionality across its platform since March 2023, Salesforce has created competitive differentiation in an increasingly crowded CRM market. This AI-forward positioning addresses how enterprises are fundamentally rethinking customer engagement and operational workflows.

Recent acquisitions—particularly Waii, Convergence.ai, and Zoomin—have expanded Salesforce’s capabilities in data and analytics, directly supporting subscription revenue growth. The larger strategic moves like the $1.9 billion Own Company acquisition in 2024 reinforced data security and AI automation, which are now table-stakes for enterprise buyers.

Cost restructuring initiatives are already bearing fruit. In Q2 fiscal 2026, non-GAAP operating margins expanded 60 basis points to 34.3%, driven by workforce optimization and real estate consolidation. These margin tailwinds could persist into Q3, providing earnings upside if revenue expectations hold steady.

The Earnings Track Record and Predictability

Historically, Salesforce has beaten the Zacks Consensus Estimate in three of the last four quarters with an average surprise of 3.2%. However, the Q3 earnings prediction model shows no conclusive edge—Salesforce carries an Earnings ESP of 0.00% and maintains a Zacks Rank #3 (Hold), suggesting this quarter could play out closer to consensus than either direction.

The Headwind Nobody’s Talking About Enough

While Salesforce dominates the CRM category according to Gartner’s consistent rankings, enterprise IT spending is cooling. Global economic uncertainty and geopolitical tensions are compelling corporations to defer large software investments. For a company whose deal cycles hinge on CIO budget availability, this macro pressure could constrain the upside surprise investors might otherwise expect from the Q3 results.

Why Hold But Don’t Chase

Salesforce’s position as the undisputed CRM leader, reinforced by its comprehensive product ecosystem and AI expansion, provides a foundation for medium-term growth. The valuation discount relative to peers and operating margin improvement trajectory justify holding through the earnings announcement. However, with softening enterprise spending patterns and no predictive edge suggesting an earnings beat, don’t expect a dramatic post-Q3 rally. The real opportunity lies in the company’s ability to prove it can grow through IT spending headwinds—a narrative best confirmed over multiple quarters rather than one earnings report.

The Q3 earnings date of December 3 will be more about continuity than surprise. For CRM shareholders, that consistency in execution, combined with attractive entry valuations, keeps the stock worth retaining despite the near-term macro uncertainties.