Salesforce Announces Record $25 Billion Debt Sale for Share Repurchase
Salesforce Inc. has priced an unprecedented $25 billion senior notes offering on March 11, 2026. The entirety of the proceeds have been allocated for an immediate share repurchase program through accelerated share repurchase agreements. This debt-funded buyback is the largest debt issuance in Salesforce’s history, making it one of the most significant corporate borrowings in the tech sector for 2026.
The cloud software behemoth plans to channel all net proceeds from the debt into ASR transactions with leading financial institutions. The initial share delivery is anticipated to occur on March 16, 2026. The offering is set to close on March 13, 2026. Following this announcement, the company’s stock saw a 3% surge to $200 on Thursday, outperforming a weak broader market.
The $25 billion raise comes on the heels of Salesforce’s announcement in February 2026 of a $50 billion repurchase program and a 5.8% dividend increase. This move is a balancing act for tech companies, as they juggle funding AI infrastructure expansion and returning capital to shareholders. This comes amidst pressure from activist investors to enhance capital discipline and improve operating margins.
However, Moody’s Ratings downgraded Salesforce by a notch to A2, citing the debt-funded buyback as “a material shift in financial policy.” Similarly, S&P Global Ratings lowered its outlook to negative. The company last accessed the US bond market in 2021 when it raised $8 billion to fund its Slack acquisition.
Source: Investing.com