CRM

Salesforce has announced its first quarterly dividend program, signaling confidence in its financial stability and future growth. The decision marks a shift from solely focusing on growth through reinvestment and acquisition to rewarding shareholders. Analysts view this as a sign of maturity and financial discipline, reflecting Salesforce’s recurring revenue allowing for both growth funding and shareholder returns. The company faces increasing competition and must balance dividend payouts with maintaining its competitive edge and R&D spending in the long run.

Salesforce’s stock has significantly underperformed compared to Oracle, reversing their pandemic-era market cap crossover. Investors await Salesforce’s quarterly results amid slowing growth in its core CRM market. AI presents both a challenge and an opportunity, with Salesforce launching Agentforce, an AI-powered customer support system. Analysts are watching improvements in remaining performance obligations and the impact of the Informatica acquisition. Activist investors remain engaged, seeking further improvements in profitability. Oracle, meanwhile, benefits from cloud infrastructure commitments related to AI.