Salesforce Initiates a Quarterly Dividend of $0.40 per Share of Outstanding Common Stock
In a significant move, Salesforce’s (CRM) board authorized its inaugural cash dividend of 40 cents per share and bolstered its share repurchase program by $10 billion.Salesforce’s stock drew attention Thursday following the release of its fourth-quarter figures. While initially dipping, it rebounded strongly as several analysts revised their price targets upward post-results.
During Q4, Salesforce raked in $9.29 billion in revenue, surpassing estimates of $9.22 billion, with earnings per share standing at $2.29, exceeding predictions of $2.26. Notably, total revenues surged by 11% year-over-year, accompanied by an operating margin of 17.5%. Moreover, cash flow from operations witnessed a 22% annual increase to $3.4 billion, while free cash flow soared by 27% to $3.26 billion.
Marc Benioff, Salesforce’s chair and CEO, expressed confidence in the company’s trajectory, citing their robust Einstein Platform and their readiness to harness the forthcoming surge in tech spending. He emphasized their commitment to delivering unparalleled intelligence to clients amid the transformative impact of AI across industries.
Looking ahead, Salesforce forecasts first-quarter revenue in the range of $9.12 billion to $9.17 billion, slightly below estimates. Adjusted earnings for the quarter are anticipated to be between $2.37 and $2.39 per share, surpassing analysts’ projections.
For the full year 2025, Salesforce projects revenue between $37.7 billion and $38 billion, with adjusted earnings anticipated to fall between $9.68 and $9.76 per share.
Analysts’ responses were overwhelmingly positive, with Brent Bracelin from Piper Sandler maintaining a Neutral rating but upping the price target to $300. Rob Oliver of Baird reiterated an Outperform rating and raised the price target to $355, while Scott Berg from Needham maintained a Buy rating, increasing the price target to $345.
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