Salesforce Borrowed $25 Billion to Buy Its Own Stock and Cut Its Cash Flow Growth Guidance in Half
- Joseph K
- Aug 17
- 1 min read
Salesforce (CRM+0.34%) made one of the biggest capital-allocation decisions in software this year, and it came in two parts.
In March, the company entered a $25 billion accelerated share repurchase -- the largest such deal in history, by its own description -- funded with a $25 billion debt issuance. Then, reporting fiscal first-quarter results in late May, it told investors that fiscal 2027 operating and free-cash-flow growth would come in around 4% to 5%, half the 9% to 10% it had guided to in February, specifically to reflect the cost of that debt.
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