Salesforce Contextual Advantage Wins Over Bullish Investor

Despite Salesforce's shares being down nearly 10% this year, one investor remains committed to buying the stock. Their reasoning is based on a strategic asset that every AI model will eventually need: context. The investor believes that Salesforce owns the context and has been adding to their position on every leg lower.

The investor points out that Salesforce generated $14.402 billion in free cash flow in fiscal 2026, up 15.83%, giving the stock a free cash flow yield of 7.34% at a market cap near $196.2 billion. The trailing P/E sits at 26 and price to free cash flow is only 14.

The investor also highlights the company's aggressive capital return strategy, including a $25 billion accelerated share repurchase program that is retiring at least 14% of shares outstanding at an average price of $176 per share. Additionally, Salesforce has raised its quarterly dividend from $0.416 to $0.44.

The investor believes that Agentforce, which crossed $1.5 billion in ARR in Q2 FY27, up over 240% year over year, is a key driver of the company's growth. They also mention Data 360 and its combined ARR near $3.9 billion.