Salesforce Borrowed $25 Billion to Fund Buyback, Cut Fiscal 2027 Cash-Flow Growth Guidance in Half

3-line summary

• Salesforce entered a $25 billion accelerated share repurchase in March, the largest such deal in its history by its own description, funded with a $25 billion debt issuance; the buyback is part of a $50 billion authorization the board approved in February.
• The company received an upfront delivery of 103 million shares, about 80% of the total it expects to repurchase, and returned $27.5 billion to shareholders in a single quarter ($27.1 billion in repurchases plus $365 million in dividends) — more than its free cash flow for the entire prior fiscal year; diluted share count is down 10%.
• Reporting fiscal Q1 results in late May, Salesforce told investors its fiscal 2027 operating and free-cash-flow growth guidance would be cut roughly in half, reflecting the new debt's interest burden; Q1 operating cash flow was $6.7 billion, up only 3% year over year, while diluted EPS rose 52% to $2.42, aided by gains on strategic investments.

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