Salesforce's Cash Machine Hides Behind Aggressive Share Repurchase Program
Salesforce (NYSE:CRM) remains a top pick for investors due to its strong cash flow and aggressive share repurchase program. The company's free cash flow yield stands at 7%, with a trailing P/E of 26 and price-to-free-cash-flow ratio of 14.
The $25 billion accelerated share repurchase program is set to retire at least 14% of shares outstanding, with an average price of $176 per share. This move has already led to a diluted share count decrease from 962 million to 821 million in the past year.
Salesforce's Agentforce ARR crossed $1.5 billion in Q2 FY27, up over 240% year-over-year. The company's Data 360 ARR sits near $3.9 billion, with remaining performance obligations hitting $33.5 billion, up 14%. Q2 free cash flow grew 81.49% to $1.098 billion.
The customer voices matter more to the author than the numbers. Xero, a customer since 2014 with nearly 5 million subscribers, rolled its Agentforce service agent to 100% of customers and is running a 62% deflection rate across 200,000 interactions. Legora's CFO put it plainly: 'The agent is only as good as the context that you give it. And that context has to come from an authoritative layer.'