Salesforce’s Agentforce Surpasses $1 Billion ARR While $27 Billion Buyback Lifts the Stock 9%

Wall Street’s love-hate relationship with Salesforce took a sharp turn on Thursday after the cloud giant delivered a quarterly earnings beat and unveiled a record capital return program. The stock shot up more than 9 percent in intraday trading to around $192, as investors latched onto two clear signals: the company’s artificial intelligence engine is scaling fast, and management is willing to put billions on the table to defend the share price.

At the center of the narrative is Agentforce, Salesforce’s AI platform for enterprise automation. The division reported annualized recurring revenue that has already topped $1 billion and surged 205 percent to $1.2 billion. Over the quarter, the system processed 28.6 trillion tokens and executed 3.8 billion agentic work units — numbers that shift the conversation from pilot projects to real commercial deployment. Alongside the Data 360 suite, Salesforce’s AI offering is now generating $3.4 billion in annualized recurring revenue, more than triple the level from a year ago.

Operationally, the company is sharpening its cost structure and deepening customer relationships. A newly highlighted partnership with CVS Health will embed Agentforce into call-center workflows, providing real-time support for service representatives. And the introduction of xRouter, an internal routing system designed to cut the cost and latency of large language model queries, aims to make the AI proposition more profitable at scale. The lower the per-transaction cost, the easier it becomes to sell the platform to the broad enterprise market.

Should investors sell immediately? Or is it worth buying Salesforce?

The first quarter of fiscal 2027 delivered a 13 percent revenue increase to $11.13 billion, with adjusted earnings per share of $3.88 easily beating the consensus estimate of $3.13. Contracted revenue for the next twelve months climbed 14 percent to $33.6 billion, while free cash flow reached $6.6 billion. Those cash flows are fueling an aggressive capital return strategy: Salesforce announced a $25 billion accelerated share repurchase program, and in the first quarter alone it deployed $27.1 billion on buybacks — the largest quarterly repurchase in the company’s history. The board also declared a quarterly dividend of $0.44 per share, payable on July 2, with a record date of June 11.

Despite the post-earnings rally, the stock has a long way to recover. In euro-denominated trading, the shares closed at €164.46, up 8.8 percent on the day but still 31.8 percent below their 52-week high. Year-to-date, the stock remains down 24 percent. The market’s skepticism is not entirely unfounded: some analysts caution that the full-year revenue forecast of $45.9 billion to $46.2 billion lands near the lower end of expectations, and segments such as Marketing and Commerce continue to show mixed performance.

The real test for Salesforce will be whether Agentforce can convert its surging usage metrics into sustainable profit growth over the coming quarters. If the cost efficiencies from xRouter and the CVS Health partnership hold up, the AI business could move from a bright spot to a core earnings driver. Until then, the massive buyback serves as both a vote of confidence in the stock and a temporary cushion against the broader market doubts that have weighed on the company since the start of the year.

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