Marc Benioff’s Salesforce Spent a Record $27 Billion on Stock Buybacks in a Single Quarter to Fight What He Calls the “SaaSpocalypse.” Here’s Why the Size of That Repurchase Matters.
Salesforce’s (NYSE: CRM) stock price has fallen 46% from its previous high amid what CEO Marc Benioff calls the “SaaSpocalypse” — the fear that artificial intelligence (AI) agents will pressure corporate spending on software-as-a-service (SaaS) products
Benioff doesn’t see that playing out. His company spent a record $27 billion in stock buybacks in the first quarter ending in April, signaling confidence in its growth trajectory. That’s a massive capital return, equal to nearly 19% of Salesforce’s market cap as of April 30.
Combined with continued revenue growth, the repurchase sends a clear message: Management believes the market price may be discounting the company’s long-term earnings power. What the stock buyback means for investors Benioff signaled he’s willing to accelerate repurchases when he sees a meaningful gap between the stock price and the company’s long-term value. The most immediate impact is a lower share count, which lifts earnings per share.