Salesforce Stock: AI Momentum Drives Growth Amid Market Disconnect

Salesforce reports record headcount and strong cash flow, using AI to accelerate revenue despite a lagging share price. It plans aggressive buybacks and dividend hikes.

In a technology sector where artificial intelligence is frequently cited as a driver of workforce reduction, Salesforce is charting a distinct course. The company's leadership, including CEO Marc Benioff, frames its AI integration not as a replacement for employees but as a pure productivity enhancer for its engineering teams. This stance is underscored by the firm's record headcount, which now exceeds 83,000 personnel. This operational strength is fueling robust software revenue growth, creating a stark contrast with the persistent weakness observed in the company's share price.

Strong Fundamentals and Shareholder Returns

Beyond its AI narrative, Salesforce closed its fiscal year 2026 with compelling financial metrics. The company generated a free cash flow of $14.4 billion, representing a 16 percent year-over-year increase. Management is deploying this liquidity in an aggressive capital return program. In mid-March, an accelerated share repurchase program worth $25 billion was initiated, forming part of a newly authorized $50 billion framework. Furthermore, the upcoming quarterly dividend is being raised to $0.44 per share.

AI Products Fueling Revenue Acceleration

A key element of Salesforce's strategy involves a significant restructuring of its Slack collaboration platform. A recent update has equipped the native Slackbot with more than 30 new functions. The assistant now integrates directly with the CRM system and the AI solution Agentforce, seamlessly pulling customer data into ongoing conversations.

This focus is yielding substantial financial results. The annual recurring revenue (ARR) for Agentforce surged by 169 percent year-over-year to reach $800 million. When combined with the Data 360 segment, this ARR figure climbs to $2.9 billion. The practical adoption of these AI agents is evidenced by over 29,000 closed contracts and major deals, such as the new contact center for the U.S. Department of Labor.

Market Performance and Forward Guidance

Despite these fundamental advances, the stock market has remained unimpressed. Shares are currently trading near €162, reflecting a decline of more than 25 percent since the start of the year and positioning the stock notably below its critical 200-day moving average.

The company's medium-term planning, however, signals continued confidence in its business model. For fiscal year 2027, Salesforce is targeting revenue growth of 10 to 11 percent, aiming for $46.2 billion in total sales. Looking further ahead, the company projects reaching the $63 billion revenue mark by 2030, a goal it expects to achieve through the ongoing adoption of its AI solutions across the enterprise sector.