Salesforce Raises Dividend, $50B Buyback After Q4 Beat, Guides Soft Q1
Salesforce reported Q4 revenue of $11.2 billion, up 12% year-over-year and slightly above consensus, and adjusted EPS of $3.81 topped estimates by over 25%. The company raised its quarterly dividend to $0.44, authorized a $50 billion buyback and guided Q1 revenue of $11.03–11.08 billion, prompting a 4% after-hours share drop.
1. Q4 Financial Results
Salesforce posted Q4 revenue of $11.2 billion, up 12% year-over-year and surpassing the $11.18 billion consensus. Adjusted earnings per share reached $3.81, beating estimates by 25.7% and driven by strength in subscription and support revenue.
2. Capital Returns
The board increased the quarterly dividend to $0.44 per share and authorized a new $50 billion share repurchase program, marking the largest buyback in company history and underscoring commitment to returning excess cash to shareholders.
3. Guidance and Market Reaction
Salesforce guided Q1 revenue between $11.03 billion and $11.08 billion and set fiscal 2027 revenue outlook of $45.8–46.2 billion. Shares slipped about 4% in after-hours trading as investors weighed the beat against softer forward estimates.