Salesforce Defends AI Strategy, Expands Buybacks to $27.1 Billion as Stock Slips 1.5%
Updated
Updated · CNBC · May 27
Salesforce Defends AI Strategy, Expands Buybacks to $27.1 Billion as Stock Slips 1.5%
3 articles · Updated · CNBC · May 27
Salesforce shares fell 1.5% in extended trading Wednesday even after an earnings beat, as investors focused on softer-than-expected guidance and persistent worries that generative AI could disrupt software vendors.
Marc Benioff responded by doubling down on product execution, customer success and buybacks, saying Salesforce will keep driving revenue and cash flow rather than retreat during the sell-off.
$27.1 billion in repurchases have now cut Salesforce's diluted share count by 10% from a year earlier, and CFO Robin Washington said the buybacks added 23 cents to first-quarter adjusted EPS.
Benioff rejected talk of a "Saaspocalypse," citing a record quarter and unusually strong large-deal activity while arguing AI should strengthen Salesforce, including through Slack's Anthropic-powered tools.
Is Salesforce's record buyback a sign of confidence or a defense against slowing growth and AI threats?
With 95% of AI pilots failing, how will Salesforce's AI strategy succeed where others have stumbled?