A strong quarter for automation and AI-driven platforms comes with very different market reactions.
Salesforce (CRM), UiPath (PATH), and Snowflake (SNOW) all reported quarterly results that spotlight the evolving relationship between enterprise software and AI. Despite mixed stock reactions, each company delivered performance metrics that matter to long-term investors.
Key Points
- CRM, PATH, and SNOW all beat earnings expectations, showing resilience across enterprise software.
- AI momentum is driving new revenue streams, but profitability pressures vary significantly.
- Investors are deciding whether these names remain among the best stocks to buy in AI-powered automation and data analytics.
Salesforce (CRM): AI Momentum Meets Slowing Revenue but Rising Profitability
Salesforce delivered a beat-and-raise quarter that helped break its three-quarter losing streak. Adjusted EPS came in at $3.25, well above estimates, and revenue grew 9% year-over-year to $10.26 billion. Though revenue slightly missed expectations, the story was all about profitability with margins expanding.
Current Remaining Performance Obligations rose 11% to $29.4 billion, supported by strong bookings and geographic performance. Agentforce and Data 360 ARR reached nearly $1.4 billion, with Agentforce alone climbing to $540 million.
The real driver, however, is AI. Salesforce’s Agentforce and Data 360 hit nearly $1.4 billion in annual recurring revenue, up 114% year-over-year. Agentforce alone surged to $540 million in ARR, increasing more than 330% from last year. With over 18,500 deals and massive usage (3.2 trillion processed tokens), Salesforce believes AI can bring it back to double-digit growth.
Still, fourth-quarter EPS guidance landed in line with expectations, tempering some enthusiasm as investors watch closely whether AI investment turns into sustained revenue acceleration.
UiPath (PATH): A Breakout Quarter Sparks Renewed Confidence
UiPath delivered one of its strongest quarters in recent memory. The automation-software company posted adjusted EPS of $0.16—slightly above expectations—and revenue of $411.1 million, up 16% year-over-year.
Annualized recurring revenue reached $1.782 billion, growing 11% from last year. Investors welcomed signs that enterprise customers are spending again after earlier fears of government budget tightening and intense AI competition.
Partnerships with OpenAI and Nvidia (NVDA) are giving UiPath a clear narrative: automation and AI are converging, and the company is positioning itself as a key player. Its platform now integrates advanced language models to automate tasks from claims processing to financial workflows.
Guidance for the next quarter was in line with expectations, projecting revenue of $462–$467 million and ARR of up to $1.849 billion. Investors want more proof of accelerating growth, but UIPath’s momentum and product execution have shifted sentiment meaningfully.
Snowflake (SNOW): Strong Results Overshadowed by Margin Concerns
Snowflake posted a classic “beat that didn’t feel like a beat.” Adjusted EPS of $0.35 topped expectations and revenue rose 29% to $1.21 billion. Product revenue grew 29%—solid, but below the prior quarter’s 32% growth.
Remaining performance obligations surged 37% to $7.88 billion, reflecting strong demand and more than $1 billion in added backlog. Snowflake also announced a $200 million partnership with Anthropic to bring Claude models to its platform, reinforcing its positioning in enterprise AI.
Yet investors punished the stock—down more than 10%—because Snowflake guided to a lower fourth-quarter operating margin of 7%, compared with 11% in Q3. Heavy AI investment appears likely to squeeze profits in the short term, despite long-run potential.
Wall Street remains broadly optimistic, with analysts citing robust bookings, strong AI adoption, and a healthy customer expansion rate. But the valuation—over 160x next year’s earnings—means execution must remain near-perfect.
What’s Driving These Stocks, and Which Look Like Companies That Are Good to Invest In?
The common thread across CRM, PATH, and SNOW is AI—specifically how it drives automation, productivity, and data intelligence. However, each company is at a different stage of turning AI into revenue:
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Salesforce shows the clearest early monetization through Agentforce ARR growth.
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UiPath is proving automation and AI can reinforce one another and lift recurring revenue.
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Snowflake is leaning into AI partnerships but must balance investment with profit expectations.
For investors analyzing stocks in enterprise software, the decision comes down to growth versus profitability. Salesforce is becoming more cash-generative, UiPath is stabilizing and gaining traction, and Snowflake is prioritizing long-term AI positioning over short-term margin strength.
Conclusion
CRM, PATH, and SNOW all delivered results that highlight the enormous role AI now plays in enterprise technology. While Salesforce and UiPath were rewarded for their performance, Snowflake is navigating the reality that AI investment can pressure margins even as demand grows.
For investors following the latest company news and investment news trends, these three remain central players in cloud, automation, and data intelligence—but each requires different expectations for risk, valuation, and growth.
FAQs
How did Salesforce perform this quarter?
Salesforce beat earnings expectations, improved profitability, and saw strong AI-related ARR growth.
Why did UiPath stock surge?
UiPath topped earnings and revenue estimates, showed stable ARR, and gained confidence from AI integrations.
Why did Snowflake stock fall despite strong results?
Snowflake guided to lower margins due to AI investment, overshadowing otherwise strong revenue and bookings.
Are these companies benefiting from AI adoption?
Yes, all three are monetizing AI through automation, data intelligence, and workflow enhancement.
Which of the three looks strongest for long-term investors?
Salesforce offers profitability, UiPath offers automation momentum, and Snowflake leads in data infrastructure.
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