Salesforce Launches $50B Capital Return with $25B Bond Offering and Buyback

Salesforce (NYSE: CRM) announced a sweeping $50 billion capital return program on March 11, 2026, launching a $25 billion accelerated share repurchase funded by an equally sized bond offering — marking one of the largest corporate debt issuances in recent history.

The Deal

The cloud software giant entered into accelerated share repurchase (ASR) agreements with five major banks to immediately buy back $25 billion of its common stock. The company will pay the full $25 billion upfront on March 16, 2026, and receive approximately 80% of the shares immediately, with final settlement expected in Q4 2026.

To fund the buyback, Salesforce priced $25 billion in senior notes across eight tranches with maturities ranging from 2028 to 2066. The offering represents one of the largest corporate bond deals on record, with yields spanning from 4.5% on the shortest-dated 2028 notes to 6.7% on the 40-year 2066 notes.

The debt issuance attracted strong investor demand, with pricing near par across all tranches:

• $3.5 billion of 4.500% notes due 2028 (priced at 99.920%)
• $4.25 billion of 4.650% notes due 2029 (priced at 99.978%)
• $3.75 billion of 4.900% notes due 2031 (priced at 99.809%)
• $2.75 billion of 5.200% notes due 2033 (priced at 99.779%)
• $4.5 billion of 5.550% notes due 2036 (priced at 99.969%)
• $1.5 billion of 6.400% notes due 2046 (priced at 99.821%)
• $3.75 billion of 6.550% notes due 2056 (priced at 99.921%)
• $1 billion of 6.700% notes due 2066 (priced at 99.916%)

Additionally, Salesforce secured a new $6 billion five-year term loan facility with JPMorgan Chase serving as administrative agent. The company used these proceeds to refinance existing debt, paying off a $4 billion 364-day facility and a $2 billion three-year facility, both originated in June 2025.

Strategic Rationale

The massive capital deployment represents a vote of confidence in Salesforce's cash generation capabilities and signals management's belief that the stock is undervalued. The $50 billion authorization, which includes the current $25 billion ASR, provides the company with significant flexibility for future buybacks.

By using an accelerated share repurchase structure, Salesforce can immediately retire a substantial portion of shares, providing an instant boost to earnings per share. The ASR agreements with Banco Santander, Bank of America, Citibank, JPMorgan Chase, and Morgan Stanley ensure competitive pricing through multiple counterparties.

The debt financing takes advantage of Salesforce's strong credit profile to lock in long-term funding across the yield curve. The laddered maturity structure from 2028 to 2066 provides flexibility while spreading refinancing risk over four decades. Net proceeds after underwriting discounts and expenses are expected to total approximately $24.885 billion.

The refinancing of the June 2025 facilities with a new five-year term loan extends the company's debt maturity profile. The new facility offers flexibility with a choice between base rate or term SOFR pricing, plus margins tied to Salesforce's credit ratings.

What to Watch

The final number of shares repurchased will depend on Salesforce's stock price performance through Q4 2026. Under the ASR structure, if the stock price rises during the measurement period, the company will receive fewer shares for its $25 billion investment. Conversely, a declining stock price would result in more shares retired.

Investors should monitor how the substantial debt load impacts Salesforce's financial flexibility. While the company's strong cash flows can support the interest payments, the added leverage could limit future acquisition capacity or require more disciplined capital allocation.

The transaction's closing is expected on March 13, 2026, for the bond offering, subject to customary conditions. J. Wood Capital Advisors served as financial adviser for the accelerated share repurchase transaction, while J.P. Morgan Securities, BofA Securities, Barclays Capital, Citigroup Global Markets, and Wells Fargo Securities led the debt underwriting.

With $25 billion remaining under the $50 billion authorization after this ASR, Salesforce retains significant firepower for additional buybacks. The company's board initially authorized the repurchase program in August 2022, expanding it to the current $50 billion level in February 2026.