Salesforce has announced plans to issue $25 billion in debt to fund a massive stock repurchase program, a move that analysts say could signal confidence in future growth—or raise red flags about financial priorities. The decision comes as the CRM leader faces pressure to boost shareholder value after slower-than-expected revenue growth in Q1 2026.
According to SEC filings reviewed by CNBC, the debt issuance will include a mix of short-term and long-term notes, with interest rates reflecting current market conditions. Sources familiar with the matter say the buyback could retire up to 10% of outstanding shares.
“This is textbook financial engineering,” said one Wall Street analyst who requested anonymity due to client relationships. “When growth slows, companies often turn to buybacks to prop up EPS—but loading up on debt changes the risk profile.”
Salesforce last conducted a major buyback in 2022, spending $10 billion when shares traded near $160. The stock currently hovers around $300 after a 12-month rally in enterprise software stocks.
Market observers will watch Moody’s upcoming credit rating review, as Salesforce currently holds an A3 investment-grade rating. Any downgrade could increase borrowing costs for future initiatives.