Salesforce's $27B Buyback Bet Pays Off with Q2 Earnings Crush

Salesforce has been facing valuation pressures, which led to an aggressive share repurchasing program. In Q1, the company carried out a record $27.1 billion in buybacks.

This move was partly in response to concerns that its business could be disrupted by artificial intelligence. However, with its recent Q2 report showing non-GAAP earnings per share of $5.90 and sales of $11.35 billion beating analyst estimates, the company's confidence appears vindicated.

The strong Q2 results were partly due to an increase in the value of Salesforce's stake in Anthropic. The company also saw a 81% year-over-year increase in free cash flow to $1.1 billion, reflecting improved operational efficiency and sales growth.