The AI-fueled “SaaSpocalypse” has indiscriminately sent software-as-a-service (SaaS) stock prices lower over the last few months. While it’s true that new generative artificial intelligence (AI) tools could pose a significant threat to many enterprise software companies, the highest-quality companies with wide moats could find AI more of a friend than a foe. As a result, the current sell-off in their stocks could be a massive buying opportunity.
Salesforce (NYSE: CRM) management certainly thinks so. The board authorized a $50 billion share repurchase program at the start of the year. In early March, the company issued $25 billion in debt to accelerate that repurchase, and it immediately executed on about 80% of that amount. Here’s why management is betting big on the stock.
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Salesforce has seen its revenue growth slow over the last few years, but there are signs of a reacceleration on the horizon. Net new annual order value (AOV) growth increased in the second half of fiscal 2026, which ended in January, relative to the second half of 2025. As Salesforce fulfills those contracts, it should see an increase in actual revenue growth. Management expects investors to see the acceleration in the second half of 2027, sooner than previously anticipated.
That result is driven by its efforts in artificial intelligence. Salesforce has embedded new AI capabilities across its entire software suite, and it’s in the process of upselling customers packages that offer access to its Agentforce agentic AI capabilities. Agentforce sales increased 169% year over year to $800 million last quarter. When combined with its Data 360 and Informatica cloud businesses (which are packaged with Agentforce), total annual recurring revenue tied to its AI efforts stood at $2.9 billion as of the end of the year.
Management also sees potential for AI to expand its addressable market. Since agentic capabilities increase the return on investment a business gets from buying Salesforce software, more companies may be willing to buy more licenses. Additionally, management expects enterprise adoption of AI to increase token usage, giving it the opportunity to sell additional credits or unlimited access. What’s more, it should be able to keep those prices stable even as the cost per token declines.
