Home / Business and Economy / Salesforce Buys Back $50B in Stock Amid Price Drop
Salesforce Buys Back $50B in Stock Amid Price Drop
26 Feb
Summary
- Salesforce announced a $50 billion share buyback program.
- The company's stock has fallen nearly 30% year-to-date.
- Fourth-quarter earnings surpassed analyst expectations.
Salesforce Inc. announced a substantial $50 billion share buyback program, signaling CEO Marc Benioff's belief that the company's stock is currently undervalued. This announcement follows a significant market reaction, with shares declining by approximately 30% in the first two months of 2026.
Despite a 5% drop in extended trading on February 25, 2026, Salesforce reported fourth-quarter results that slightly exceeded analyst forecasts. Revenue for the quarter reached $11.2 billion, outpacing expectations of $11.18 billion. Earnings per share (EPS) were reported at $3.81, higher than the estimated $3.04.
Looking ahead to fiscal year 2027, Salesforce projects EPS between $3.11 to $3.13 and revenue between $11.03 billion to $11.08 billion. For the full fiscal year, revenue guidance is set between $45.8 billion to $46.2 billion, with EPS projected at $13.11 to $13.19.
The company also anticipates substantial revenue for fiscal year 2030, now projected at $63 billion, an increase from the previous $60 billion forecast, partly due to the recent $8 billion acquisition of Informatica. Salesforce's investment in AI firm Anthropic yielded an $811 million gain, significantly higher than the previous year's quarter.
