"The primary obstacle to any go-private scenario is the CEO. Marc Benioff co-founded Salesforce and maintains significant influence. On the Q3 earnings call, he framed the company's AI strategy in generational terms: "We are witnessing the emergence of digital labor. For the last 25 years, Salesforce has assisted companies in managing and sharing information... Recently, we've created a brand-new market - the market for digital labor." That's not the language of a founder preparing to sell."
"The company generated $2.18 billion in free cash flow in Q3 FY2026 alone, with non-GAAP operating margins of 34.1%. Annual revenue stands at $40.3 billion, driven by predictable subscription income and 8.6% quarterly revenue growth. At a market cap of $175 billion, the stock trades at a forward P/E of 14x, well below the analyst consensus price target of $323."
Salesforce closed at $184.29 on February 17, 2026, down nearly 30% year-to-date from a $264.91 year-end close, producing a market cap near $175 billion. The company reported $2.18 billion in free cash flow in Q3 FY2026, non-GAAP operating margins of 34.1%, and $40.3 billion in annual revenue driven by subscription income and 8.6% quarterly growth. The stock trades at a forward P/E of 14x versus an analyst consensus target of $323. Significant share buybacks returned $4.2 billion, while founder Marc Benioff's influence and the Agentforce AI initiative reduce the likelihood of a go-private transaction despite private equity interest.
Read at 24/7 Wall St.
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