Salesforce and ServiceNow Initiate Aggressive Stock Buybacks Amid SaaS Sell-Off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Stock Buyback Program: Salesforce initiated a $50 billion stock buyback program in February 2026, recently commencing the repurchase of half that amount, reflecting management's strong confidence in the company's future and aiming to enhance shareholder value while stabilizing stock prices.
- Growth Expectations: Salesforce achieved record fourth-quarter results and management projects double-digit revenue growth for the current fiscal year, maintaining optimism despite market skepticism regarding AI's potential impact on growth.
- Strong Performance from ServiceNow: ServiceNow reported total revenue of $3.56 billion in Q4, a 20.5% year-over-year increase, and provided robust guidance for the full year 2026, indicating a positive outlook despite recent stock price declines due to the SaaS sell-off.
- AI-Driven Market Opportunities: CEO Bill McDermott emphasized that enterprise AI will be the largest driver of the multitrillion-dollar investment super cycle, making ServiceNow's AI platform increasingly relevant in the current market environment, which further boosts investor confidence.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 183.020
Low
223.00
Averages
326.40
High
405.00
Current: 183.020
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Accelerated Buyback Program: In response to the declining stock price, Salesforce has initiated a $50 billion accelerated repurchase program, having already spent $20 billion to buy back 103 million shares, reducing the share count by 11.1%, reflecting management's confidence in the company's future.
- Insider Buying Activity: Directors David Blair Kirk and Laura Alber purchased approximately $500,000 worth of shares on March 18 and 19, respectively, indicating optimism among insiders regarding Salesforce's future performance.
- AI Technology Integration: Salesforce's close partnership with Anthropic has led to a 37% growth in its Agentforce 360 platform last quarter, suggesting that despite overall business slowdowns, the company is well-positioned to leverage AI advancements and adapt to market changes.
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- Stock Price Plunge: Salesforce's stock has fallen to an all-time low, with a market cap around $148 billion, despite a projected 10% growth in free cash flow for fiscal 2027, as concerns over potential AI threats loom large.
- Accelerated Buyback Program: In response to the declining stock price, Salesforce has initiated a $50 billion accelerated repurchase program, having already spent $20 billion to buy back 103 million shares, reducing the share count by 11.1%, reflecting management's confidence in the company's future.
- Insider Buying Activity: Directors David Blair Kirk and Laura Alber purchased approximately $500,000 worth of shares on March 18 and 19, respectively, indicating optimism among insiders regarding Salesforce's future performance.
- AI Technology Integration: Salesforce's close partnership with Anthropic has led to a 37% growth in its Agentforce 360 platform last quarter, suggesting that despite overall business slowdowns, the company is well-positioned to leverage AI advancements and adapt to market changes.
See More
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- Buyback Signal: Salesforce has announced a massive $50 billion stock repurchase program as its share price hits an all-time low, indicating management's confidence in the company's future despite potential threats from AI technology.
- Solid Financial Performance: While the software sector is experiencing a downturn, Salesforce reported a 12.1% year-over-year revenue increase and an 18.3% rise in earnings per share last quarter, suggesting the company can maintain profitability amid AI impacts and is poised for future growth.
- Insider Buying: Salesforce executives purchased approximately $500,000 worth of shares in the open market, reflecting their optimistic outlook on the company's prospects and further bolstering market confidence in its stock.
- AI Collaboration and Innovation: Salesforce's close partnership with Anthropic has driven a 37% growth in its Agentforce 360 platform last quarter, demonstrating the company's proactive strategy and positioning in the rapidly evolving AI landscape.
See More
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See More
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- Funding and Valuation: Figure AI raised over $1 billion in its Series C funding round in September, achieving a post-money valuation of $39 billion, with plans to deploy thousands of robots in homes and logistics, reflecting strong investor enthusiasm for physical AI.
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See More
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- Educational Applications: Melania's promotion of AI in children's education through the robot suggests that these machines could evolve into interactive educators at home, potentially expanding Figure AI's market opportunities significantly.
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See More
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- Salary Policy Change: Salesforce has decided not to offer raises to employees at the director level and above this year, instead focusing on increasing stock and bonus pools for its 'highest-performing individuals,' aiming to drive long-term growth through performance incentives.
- Internal Communication Transparency: According to Business Insider, this decision stems from an internal email indicating that the company is adopting a more cautious compensation strategy in the current economic environment to ensure effective resource allocation and performance orientation.
- Long-term Investment Strategy: Salesforce views this move as an investment in company performance and long-term growth, and while it may impact employee morale in the short term, the company hopes to enhance overall team performance through its incentive mechanisms.
- Market Reaction Monitoring: This news has sparked market interest in Salesforce's future human resource management strategies, with investors closely watching how the company balances employee satisfaction with performance-driven outcomes.
See More
