Salesforce Inc (NYSE:CRM) shares are climbing on Thursday after the company delivered a stronger‑than‑expected fourth quarter, boosted its dividend, launched a massive $50 billion buyback plan and issued guidance that topped Wall Street expectations.
Stronger‑Than‑Expected Q4 Results Lift Confidence
Salesforce reported fourth‑quarter revenue of $11.2 billion, edging past forecasts, while adjusted earnings of $3.81 per share came in far above the expected $3.04. Revenue grew 12% from a year ago, and remaining performance obligations reached $72.4 billion, up 14%.
Solid Outlook And Major Capital Return Plan
The company raised its quarterly dividend to 44 cents per share and introduced a new $50 billion share repurchase program, replacing all previous authorizations.
Salesforce also issued upbeat guidance. For the first-quarter, the company expects revenue between $11.03 billion and $11.08 billion, above analyst estimates, and adjusted earnings of $3.11 to $3.13 per share. For fiscal 2027, the company projects revenue of $45.8 billion to $46.2 billion and adjusted earnings of $13.11 to $13.19 per share.
CEO Marc Benioff noted that AI remains a major growth driver and reiterated Salesforce's long‑term goal of reaching $63 billion in revenue by fiscal 2030.
Analysts Stay Positive Despite Lower Price Targets
Following the company’s quarterly results, several analysts maintained positive ratings, but lowered price targets on the stock. Here’s a look at some of the most notable changes from Thursday.
- Piper Sandler analyst Billy Fitzsimmons reiterated an Overweight and lowered the price target from $280 to $250.
- Wedbush analyst Dan Ives maintained an Outperform and lowered the price target from $375 to $325.
- Needham analyst Scott Berg reiterated a Buy and maintained a $400 price target.
- Wells Fargo analyst Michael Turrin maintained an Equal-Weight and lowered the price target from $235 to $210.
- Oppenheimer analyst Brian Schwartz maintained an Outperform and lowered the price target from $275 to $250.
- BMO Capital analyst Keith Bachman maintained an Outperform and lowered the price target from $235 to $225.
- TD Cowen analyst Derrick Wood maintained a Buy and lowered the price target from $325 to $250.
CRM Price Action: Salesforce shares were up 3.33% at $198.14 at the time of publication on Thursday, according to Benzinga Pro.
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