Salesforce Announces $50 Billion Stock Buyback: Is Now the Right Time to Invest?

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Salesforce Q4 Earnings Report

Salesforce (NYSE: CRM) reported its fourth quarter earnings for fiscal 2026 on February 25, revealing a 12% year-over-year revenue increase to $11.2 billion, aligning with analysts’ expectations. The company saw adjusted earnings per share (EPS) rise by 37% to $3.81, surpassing forecasts by $0.76.

For the full fiscal year, Salesforce generated $41.5 billion in revenue (up 10%) with adjusted EPS of $12.52 (up 23%). Looking ahead, the company anticipates a 10%-11% revenue growth in fiscal 2027, bolstered by its acquisition of Informatica, which is expected to add approximately three percentage points to revenue growth. Additionally, Salesforce announced a new $50 billion share buyback program, representing 28% of its market cap of $180 billion.

Despite these positive figures, Salesforce’s stock has declined by about 36% over the past year, primarily due to concerns regarding slowing sales growth and heightened competition from emerging AI platforms. Analysts predict a modest adjusted EPS increase of only 6% for fiscal 2027, raising questions about the company’s long-term growth prospects.

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