Salesforce Stock Rises on Strong Earnings, Announces $50 Billion Buyback Plan

Shares of Salesforce moved higher Thursday following a quarterly earnings report that surpassed analyst expectations, even as its full-year revenue outlook came in slightly below some forecasts. The software giant also announced a massive new $50 billion share repurchase program.

The company reported fiscal fourth-quarter earnings of $3.81 per share on revenue of $11.20 billion, beating estimates. Revenue grew 12% from a year earlier, marking the company's strongest growth in two years. Net income also rose significantly to $1.94 billion.

On a conference call, CEO Marc Benioff framed the buyback authorization as a strategic move, noting the stock's decline of roughly 28% this year. "These are some low prices," Benioff said, contrasting the drop with the broader S&P 500's gains.

While first-quarter and full fiscal 2027 revenue guidance was largely in line with or slightly above analyst projections, the company's longer-term vision appears more ambitious. Salesforce now expects to generate $63 billion in revenue by fiscal 2030, a target raised from prior forecasts and bolstered by its recent $8 billion acquisition of data firm Informatica.

The quarter also highlighted Salesforce's aggressive push into artificial intelligence. Its Agentforce automation technology now generates over $800 million in annualized revenue. The company also recorded an $811 million gain on its strategic investments, primarily from its stake in AI developer Anthropic. Benioff expressed some regret about the size of the investment, stating, "I wish we had invested a lot more."

Despite investor concerns that new AI tools could disrupt established software companies, Salesforce pointed to competitive wins, including moving five ServiceNow clients to its platform last quarter. The company maintains a strong balance sheet, with Benioff noting it remains "very under-leveraged."

Source: CNBC