Key Stats for Salesforce Stock
- YTD Price change for Salesforce stock: 16%
- $CRM Share Price as of Feb. 27: $194
- 52-Week High: $303
- $CRM Stock Price Target: $285
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What Happened?
Salesforce (CRM) stock rose modestly on Thursday after the cloud software giant reported strong fourth-quarter results and announced a massive $50 billion share repurchase authorization.
- The company delivered $11.2 billion in revenue for Q4, up 12% year-over-year, in line with analyst estimates, while boosting its quarterly dividend by 5.8% to $0.44 per share.
- The real story was Salesforce’s AI business momentum.
- The company’s Agentforce and Data 360 platform reached $2.9 billion in annual recurring revenue, up over 200% year-over-year.
- Agentforce alone hit roughly $800 million in ARR, growing 169% annually.
- CEO Marc Benioff said the company closed 29,000 Agentforce deals in its first 15 months, with customers in production increasing nearly 50% in Q4.
- Salesforce also announced that it has processed 2.4 billion “agentic work units” (AWUs), a new metric that tracks actual AI-driven work completed rather than just token consumption.
- The company has consumed over 19 trillion tokens to date from AI model providers like Anthropic and OpenAI.
For fiscal 2027, Salesforce expects revenue between $45.8 billion and $46.2 billion, representing 10% to 11% growth.
The company also raised its fiscal 2030 revenue target to $63 billion, up from $60 billion previously, citing strong performance and the recent Informatica acquisition.
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What the Market Is Telling Us About Salesforce Stock
Despite solid results, Salesforce stock has underperformed this year, down over 24% year-to-date.
The $50 billion buyback announcement signals management’s confidence that the stock is undervalued at current levels.
Benioff called the current market “not rational” and said Salesforce is using its “remarkable cash flows to take advantage” of low prices.
The company returned more than $14 billion or 99% of free cash flow to shareholders in fiscal 2026.
With fiscal 2027 expected to deliver at least $16 billion in cash flow, Salesforce appears well-positioned to fund both the buyback and continue investing in AI development.
Salesforce’s buyback is part of a broader trend. Corporate America authorized $233.3 billion in buybacks in February alone, the largest February on record, according to Birinyi Associates.
Other tech companies like Walmart ($30 billion), Verizon ($25 billion), and Dell Technologies have also announced major repurchase programs.
Some analysts noted that current remaining performance obligation (CRPO) growth of 16% came in roughly in line with guidance rather than beating expectations as usual, raising questions about whether AI gains can offset weakness in Salesforce’s legacy marketing, commerce, and Tableau businesses.
However, the company’s AI momentum and strong cash generation suggest Salesforce stock could rebound if execution continues.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
