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Salesforce turbocharges $25 billion stock buying spree with debt, cuts cash flow guidance in half

Salesforce launched its largest-ever accelerated share repurchase (ASR) worth $25 billion as part of a $50 billion stock buyback authorization approved in…

Salesforce launched its largest-ever accelerated share repurchase (ASR) worth $25 billion as part of a $50 billion stock buyback authorization approved in February 2026, the company announced alongside its first-quarter fiscal 2027 results (fortune.com). The ASR included upfront delivery of 103 million shares, reducing Salesforce’s diluted share count by 10% year over year. In the first quarter, Salesforce returned $27.5 billion to shareholders, combining the ASR and $365 million in dividends.

The $25 billion ASR was funded through debt issuance, which led Salesforce to cut its full-year cash flow growth guidance by roughly half. CEO Marc Benioff highlighted the importance of returning record levels of capital to investors during what he described as an “unusual time.” The buyback boosted earnings per share and GAAP earnings in the quarter, according to Finance Chief Robin Washington. Despite these moves, Salesforce’s stock has declined 16% year to date and remains 36% below its 52-week high amid investor concerns about AI’s impact on software-as-a-service companies.

This buyback program underscores Salesforce’s commitment to shareholder returns amid market uncertainty, particularly as AI reshapes the SaaS landscape. The $50 billion authorization is one of the largest buyback programs in the tech sector, reflecting confidence in the company’s long-term prospects despite near-term challenges. The move also signals Salesforce’s strategy to counter negative market sentiment linked to AI-driven disruption fears.

Salesforce will continue executing its buyback plan throughout fiscal 2027, with further share repurchases expected under the remaining $25 billion authorization. Investors will watch upcoming quarterly results for updates on capital deployment and guidance revisions as the company balances growth investments with shareholder returns.

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