Salesforce turbocharges $25 billion stock buying spree with debt, cuts cash flow guidance in half |
Salesforce turbocharges $25 billion stock buying spree with debt, cuts cash flow guidance in half
Salesforce really wants to counter the narrative that an AI-related “saaspocalypse” has endangered its growth.
So, alongside its record first-quarter fiscal 2027 results on Wednesday, the cloud software giant commenced its largest-ever accelerated share repurchase at $25 billion. In doing so, the company juiced its earnings per share but cut its full-year cash flow growth outlook roughly in half to account for the debt issued to fund the block share repurchase.
The $25 billion accelerated share repurchase (ASR) is part of a $50 billion stock buyback authorization the Salesforce board approved in February 2026. In the first quarter of fiscal 2027, Salesforce returned $27.5 billion to shareholders, including $27.1 billion in the mega-share block purchase plus $365 million in dividends. The ASR included upfront delivery of 103 million shares and drove........