Salesforce launches record $50B share buyback despite investor caution over debt risks
Salesforce has launched its largest-ever share buyback programme, repurchasing an initial 103 million shares for $25 billion. The move marks half of a $50 billion plan approved by the board in February, with financing backed by a mix of bonds and credit. Investor response, however, has been cautious due to concerns over the debt-driven approach.
The company's stock price has climbed roughly 15% since the programme's announcement in December 2024, reaching around $328 as of March 2026. CEO Marc Benioff framed the aggressive buyback as a strong signal of confidence in Salesforce's future growth.
The buyback began with an accelerated share repurchase (ASR) agreement covering about 80% of the total expected volume. Five major banks delivered the initial 103 million shares under these terms. Final settlement of the programme is expected in the third or fourth quarter of fiscal 2027, based on the volume-weighted average price over the period.
Financing for the repurchase includes a bond issuance worth approximately $24.9 billion, with maturities stretching from 2028 to 2066. An additional $6 billion unsecured credit line will refinance existing debt. Despite the scale of the offering, demand was modest, with an order book of around $36 billion—reflecting investor unease about the debt-heavy structure.
Salesforce's financial performance remains robust. Fiscal 2026 saw revenue rise 10% to $41.5 billion, while remaining performance obligations grew 14% to $72.4 billion. For fiscal 2027, the company forecasts revenue between $45.8 billion and $46.2 billion, representing 10% to 11% growth.
A key driver behind this optimism is the AI platform Agentforce. Its annual recurring revenue (ARR) surged 169% to $800 million, with 29,000 contracts signed—a 50% increase over the previous quarter. Benioff has repeatedly highlighted the platform's role in the company's expansion strategy.
The $50 billion buyback programme will conclude in fiscal 2027, with final costs determined by the average share price over the term. Salesforce's reliance on debt financing has drawn scrutiny, but strong revenue growth and AI-driven products like Agentforce continue to support its market position. The stock's recent rise suggests investor confidence in the company's long-term direction.
