Business stock buyback

US Software Companies Increase Buybacks Amid AI Rout

Analysis based on 7 articles · First reported Mar 03, 2026 · Last updated Mar 03, 2026

Sentiment

-20

Attention

Articles

Market Impact

Direct

Live prominence charts, article sentiment distribution, and event development timeline available on the NewsDesk Dashboard

Market Impact

The market is experiencing a rout in software stocks, with the S&P 500 software index down 28% since late October, driven by concerns over AI disruption. While companies like Salesforce and ServiceNow are increasing buybacks, investors and strategists are skeptical these actions alone will stem the selling, focusing instead on long-term fundamental outlooks.

Software Technology Financial Services

Event Summary

U.S. software companies, including Salesforce, ServiceNow, and Paychex, have significantly increased their stock buyback plans in response to a months-long market rout. The selloff, which has seen the S&P 500 software index drop 28% since late October, is primarily fueled by investor worries that advancements in artificial intelligence, particularly after product announcements from Anthropic, will fundamentally disrupt the competitive landscape and business prospects of the sector. Despite the substantial increase in buyback authorizations, investors and strategists like Andrew Slimmon of Morgan Stanley===Morgan Stanley Investment Management and Peter Tuz of Chase Investment Counsel remain skeptical that these actions will be sufficient to halt the decline, emphasizing the need for demonstrated evidence that AI will not negatively impact specific software companies' businesses.

Key Actions

80 Salesforce increased share repurchase program

70 ServiceNow authorized additional share buybacks

60 Paychex announced a new buyback program

60 Anthropic made product announcements

50 S&P 500 software index declined

Entities Involved

stock

Salesforce

Salesforce announced a significant $30 billion increase to its existing share repurchase program, aiming to support its stock price amidst a sector-wide downturn. Despite this, the broader market sentiment suggests that buybacks alone may not be enough to counteract the negative impact of AI disruption.

Importance 80 Sentiment 0

stock

ServiceNow

ServiceNow authorized an additional $5 billion in buybacks, including a $2 billion accelerated buyback, on top of its existing plan. This action is intended to signal management confidence and potentially stabilize its stock price in a challenging market.

Importance 70 Sentiment 0

stock

Paychex

Paychex announced a $1 billion buyback program after backing its annual financial guidance. Despite this, its shares have fallen 15% since the announcement, indicating that investors are still cautious about the long-term outlook for software companies.

Importance 60 Sentiment -10

priv

Anthropic

Anthropic's product announcements accelerated the selloff in software stocks by raising concerns about the rapid changes in AI and their potential to disrupt the competitive landscape for software companies.

Importance 60 Sentiment 50

index

S&P 500

The S&P 500 software index is down 28% since late October, reflecting investor worries about AI disruption. Historically, the S&P buyback index has outperformed the S&P 500, but has lagged in the last three years.

Importance 50 Sentiment -20

subs

Morgan Stanley===Morgan Stanley Investment Management

Andrew Slimmon, a senior portfolio manager at Morgan Stanley===Morgan Stanley Investment Management, expressed skepticism that buybacks alone can stop the decline in software stocks, preferring companies with strong fundamentals and price momentum.

Importance 30 Sentiment 0

priv

Chase Investment Counsel

Peter Tuz, president of Chase Investment Counsel, is unconvinced that buybacks can be a catalyst for the software sector, stating that demonstrated evidence of AI not hurting business is needed.

Importance 30 Sentiment 0

+ 2 more entities View on Dashboard

Relationships

Salesforce related ↔ ServiceNow

NEWSDESK

Track this event live

Set up alerts, explore entity relationships, search across thousands of events, and build custom intelligence feeds.

Open Dashboard