Benioff Unveils $50B Buyback as AI Unit Hits $800M ARR with 169% Growth
Salesforce’s AI division Agentforce has reached $800 million in annual recurring revenue with 169% year-over-year growth, attracting clients like Wyndham Hotels and SharkNinja. CEO Marc Benioff announced a $50 billion share buyback program plus dividend boost and cited strong cash flow after reporting better-than-expected quarterly results with cautious full-year guidance.
1. AI Division Growth
Agentforce, Salesforce’s AI division, generated $800 million in annual recurring revenue with 169% year-over-year growth. Major clients such as Wyndham Hotels and SharkNinja reported cost savings by automating routine tasks, allowing human agents to handle complex issues.
2. Quarterly Earnings and Guidance
Salesforce delivered a robust top-and-bottom-line beat in its latest quarter but issued cautious full-year revenue and non-adjusted earnings guidance. Management noted potential transitional challenges as the business shifts to an agent-heavy model, tempering near-term expectations.
3. $50B Share Repurchase Program
Marc Benioff announced a $50 billion share buyback, representing over a quarter of existing shares, and approved a modest dividend increase. The program is backed by strong cash flow and reflects management’s view that the stock is undervalued.