Salesforce Launches $25 Billion Buyback, Raises $25B in Debt to Fund Program
Salesforce (CRM) announced a massive $25 billion accelerated share repurchase program on March 11, 2026, simultaneously raising nearly $25 billion through a multi-tranche bond offering to fund the buyback, according to an 8-K filing with the SEC.
The Deal
The cloud software giant entered into accelerated share repurchase (ASR) agreements with five major banks—Banco Santander, Bank of America, Citibank, JPMorgan Chase, and Morgan Stanley—to repurchase $25 billion of its common stock. The company will make the full $25 billion payment to the banks on March 16, 2026, and immediately receive approximately 80% of the total shares to be repurchased.
To fund this buyback, Salesforce is issuing $25 billion in senior notes across eight tranches with maturities ranging from 2028 to 2066. The offering includes:
- $3.5 billion of 4.500% notes due 2028
- $4.25 billion of 4.650% notes due 2029
- $3.75 billion of 4.900% notes due 2031
- $2.75 billion of 5.200% notes due 2033
- $4.5 billion of 5.550% notes due 2036
- $1.5 billion of 6.400% notes due 2046
- $3.75 billion of 6.550% notes due 2056
- $1 billion of 6.700% notes due 2066
The bond offering is expected to close on March 13, 2026, with net proceeds of approximately $24.885 billion after underwriting discounts and expenses.
Strategic Rationale
This aggressive capital return program represents a significant acceleration of Salesforce's existing buyback authorization. The company's board had authorized a total of $50 billion in share repurchases in February 2026, building on an initial program launched in August 2022. By executing half of that authorization immediately through an ASR, Salesforce is signaling strong confidence in its cash generation capabilities.
The accelerated share repurchase structure allows Salesforce to immediately reduce its share count while locking in the buyback at current market prices. The final number of shares repurchased will be determined based on the volume-weighted average price during the ASR term, with final settlement scheduled for the fourth quarter of 2026.
The decision to fund the buyback entirely with debt takes advantage of Salesforce's strong credit profile while maintaining operational flexibility. By spreading the debt across multiple maturities, the company is managing its future refinancing risk while locking in rates in the current environment.
Additionally, Salesforce refinanced $6 billion in existing term loans by entering into a new five-year credit agreement with JPMorgan Chase Bank as administrative agent. This replaces a $4 billion 364-day facility and a $2 billion three-year facility from June 2025, extending the maturity profile of the company's debt.
What to Watch
The scale of this transaction—effectively a $25 billion debt-funded buyback—represents one of the largest accelerated share repurchase programs in recent corporate history. Investors should monitor several key factors:
Execution risk: The ASR agreements include customary adjustment mechanisms that could affect the final share count delivered. Market volatility during the ASR term could impact the ultimate efficiency of the buyback.
Leverage metrics: Adding $25 billion in debt will significantly increase Salesforce's leverage ratios. The company's ability to maintain its investment-grade credit rating while servicing this new debt load will depend on continued strong operating performance.
Capital allocation priorities: This massive buyback suggests Salesforce sees limited need for major acquisitions in the near term, instead prioritizing shareholder returns. The company appears confident that organic growth and existing operations can support both the debt service and continued investment in the business.
Interest coverage: With rates ranging from 4.5% to 6.7% across the tranches, Salesforce will face approximately $1.3-1.4 billion in annual interest expenses on the new debt. The company's ability to comfortably cover these costs while maintaining profitability margins will be closely watched.
The transaction is being advised by J. Wood Capital Advisors for the ASR portion, with J.P. Morgan Securities, BofA Securities, Barclays Capital, Citigroup, and Wells Fargo Securities serving as lead underwriters for the bond offering.
*Source: Salesforce 8-K filing, March 11, 2026*
— StockCliff Research