Salesforce boosts share buyback authorization by $20B

Salesforce boosts share buyback authorization by $20B

Salesforce, Inc. (NYSE: CRM) has announced a significant increase in its share buyback authorization. The company has authorized an additional $20 billion for share repurchases, bringing the total to $25 billion. This move comes ahead of the company's second-quarter earnings report scheduled for Wednesday, September 3rd, after the market closes.

The decision to boost the share buyback authorization reflects Salesforce's confidence in its financial performance and future prospects. The company expects to report earnings per share (EPS) of $2.78 and revenue of $10.14 billion for the quarter, representing an 8.7% year-over-year growth in revenue [1]. This forecast aligns with the company's historical performance patterns, where it has beaten revenue estimates 75% of the time over the past two years [2].

The increase in share buyback authorization is part of Salesforce's broader strategy to return value to shareholders. The company has been actively repurchasing shares since 2013 and has returned over $30 billion to shareholders through buybacks and dividends [3]. The current buyback authorization, totaling $25 billion, is the largest in the company's history and underscores its commitment to shareholder returns.

Investors will be closely watching Salesforce's earnings report for insights into the company's AI-driven initiatives and their impact on financial performance. The company has been actively integrating artificial intelligence into its operations, including customer support and sales functions. In July, Salesforce acquired Regrello, an AI-native solution that it plans to integrate with Agentforce and Slack [1]. The company has also been leveraging AI to automate tasks and reduce costs, as evidenced by the recent elimination of 4,000 customer support jobs due to AI automation [2].

Salesforce's stock has been trading at $256.44 with an average analyst price target of $344.62, reflecting investor confidence in the company's growth prospects [2]. The stock has gained 1.6% over the past month, outperforming the average gain of 3.2% for the sales and marketing software segment during the same period [2].

In conclusion, Salesforce's decision to boost its share buyback authorization by $20 billion signals the company's commitment to returning value to shareholders. Investors will be looking for further details on the company's AI initiatives and their impact on financial performance in the upcoming earnings report.

References:
[1] https://seekingalpha.com/news/4491302-salesforce-q2-earnings-ahead-street-sees-over-8-increase-in-both-eps-and-revenue
[2] https://moneycheck.com/salesforce-inc-crm-stock-ai-revolution-claims-4000-jobs-before-earnings-report/
[3] https://finance.yahoo.com/news/earn-500-month-salesforce-stock-115116082.html