Salesforce Spends Record $27.1 Billion on Share Buybacks in Q1 Amid AI Concerns
In the first quarter of this year, Salesforce executed a record-breaking $27.1 billion in share buybacks as part of an aggressive repurchase program authorized by its board earlier that year. The move was partly driven by valuation pressures from investor concerns over artificial intelligence disrupting traditional software models and the broader 'SaaS apocalypse' narrative. The company's confidence appears to have been justified, with Salesforce reporting a significant earnings beat in Q2 2026. Non-GAAP earnings per share reached $5.90 compared to an average estimate of $3.27, while revenue hit $11.35 billion—$30 million above forecasts. The company also saw free cash flow rise by 81% year-over-year and reduced its net share count significantly despite ongoing stock-based compensation. Salesforce's strategic buybacks during a period of undervaluation contributed to strong investor returns, with the stock surging nearly 40% in August following Q2 results. The move highlights effective capital management and reinforces leadership’s confidence in Salesforce’s long-term market position.
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Topics: earnings per share (EPS) SaaS industry stock buyback valuation