S&P downgrades Salesforce to 'A' on rising M&A activity, shareholder returns
CRM•S&P downgraded Salesforce to 'A' with a stable outlook, citing rising M&A activity and shareholder returns. It expects the company to allocate most, if not all, of its free operating cash flow to shareholder returns and M&A.
1. Rating downgrade
S&P downgraded Salesforce to 'A' and maintained a stable outlook, citing rising M&A activity and shareholder returns. The agency expects Salesforce to allocate most, if not all, of its free operating cash flow to shareholder returns and M&A.
2. Revenue outlook
S&P expects Salesforce to continue increasing subscription revenue and earnings based on remaining performance obligations, and believes it can accelerate revenue growth to more than 10% annually. It said Agentforce and Data 360 will likely add to the company's core non-AI software over the longer term.
