Salesforce Calms AI Concerns With Positive Forecast and Major Share Repurchases

Salesforce Unveils Optimistic Revenue Forecast and Major Stock Buyback

Photographer: David Paul Morris/Bloomberg

Salesforce Inc. has projected a robust long-term sales outlook and revealed plans for a substantial share repurchase, easing some investor concerns about artificial intelligence disrupting the software sector.

CEO Marc Benioff announced on Wednesday that the company is on track to achieve $63 billion in annual revenue by fiscal 2030, surpassing analysts’ expectations of $60.3 billion. Additionally, Salesforce introduced a $50 billion share buyback initiative and raised its quarterly dividend to 44 cents per share.

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As a leader in customer relationship management software, Salesforce has become emblematic of investor worries regarding AI’s potential to disrupt established technology companies. Over the past year, the company’s stock has declined significantly as concerns mount that AI could lower barriers for competitors and erode Salesforce’s pricing power.

“There’s a misconception that SaaS is obsolete, but that’s simply not true,” said Executive Vice President Mike Spencer in an interview. He emphasized that customer commitments remain strong, noting that Salesforce achieved record bookings.

For the fiscal year ending January 2027, Salesforce anticipates revenue of approximately $46 billion, aligning with market forecasts. The company also expects to see renewed organic growth in the latter half of the year.

Salesforce shares rose by up to 3.9% after markets opened in New York on Thursday. While initial investor response to the earnings report was muted, analyst Kirk Materne of Evercore ISI commented that the company delivered solid, though not exceptional, fourth-quarter results and a fiscal 2027 outlook in line with expectations, justifying the tepid pre-market reaction.

AI and Product Expansion Drive Growth

Salesforce has been promoting its AI solution, Agentforce, which automates tasks like sales development and customer support without human intervention. The company reported that annual recurring revenue for Agentforce exceeded $800 million in the fiscal fourth quarter, up from $500 million in the previous quarter.

Benioff also highlighted that new offerings in IT service management and life sciences are drawing significant clients away from competitors such as ServiceNow Inc. and Veeva Systems Inc.

In the quarter ending January 31, Salesforce’s revenue climbed 12% to $11.2 billion—the fastest growth rate in years—bolstered by $399 million in sales from the recent acquisition of data software firm Informatica.

Additional Financial Highlights

After adjusting for currency changes, Salesforce’s two largest segments—sales and service—grew by 8% and 7%, respectively, though both narrowly missed Wall Street projections. Adjusted earnings reached $3.81 per share, surpassing analyst estimates.

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