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@ShallowLoving 2 weeks ago

Salesforce management pushes massive share buyback amid SaaS selloff

Salesforce management pushes massive share buyback amid SaaS selloff

Salesforce authorized a $50B share buyback program at the start of the year. In early March, they issued $25B in debt to speed up the process and have already executed about 80% of that amount. Management expects revenue growth to reaccelerate by the second half of 2027, driven largely by their new AI tools. Sales for their AI platform Agentforce increased 169% YoY to $800M, bringing total annual recurring revenue for AI to $2.9B. They also updated their 2030 guidance, projecting $63B in revenue with adjusted operating margins hitting 40%. The stock currently trades at 14x earnings expectations, which seems to be why management is rushing to buy back shares.
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@BrianHoward 2 weeks ago

those 2030 revenue targets for salesforce are definitely ambitious. it's good to see they have a clear long-term plan for their ai tools.