Salesforce defies AI disruption fears with massive $50B buyback and strong growth, signalling undervaluation

Salesforce reported robust financial outcomes for its fourth quarter of fiscal year 2026, showcasing significant progress with its agentic AI initiatives and achieving a 12% year-over-year increase in revenue, effectively countering recent anxieties regarding a sector-wide market downturn. The company generated an impressive $5.3 billion in free cash flow, marking a 40% year-over-year surge, and also unveiled a substantial $50 billion share repurchase program, which accounts for approximately 28% of its current market capitalization. Looking ahead to fiscal year 2027, Salesforce's guidance suggests continued strong performance, projecting revenue growth between 10-11% and up to a 10% increase in free cash flow, indicating ongoing positive business trajectory.

According to Ranked Stocks' proprietary analysis, Salesforce (CRM) holds an RS Score of 67.46, placing it in the 49.14th percentile within its country and the 49.70th percentile within its sector. The company demonstrates particular strength in Profitability (91.76) and EPS Revisions (88.00). However, it shows weaker performance in Valuation (75.88), Growth (62.06), and especially Momentum (15.00). Want to discover which stocks rank the highest? Start your free 7-day trial at rankedstocks.com.