Salesforce Borrows $25B for Buybacks Amid Slashed Cash Flow Guidance

Key Facts

1Salesforce issued $25 billion in debt to fund an accelerated share repurchase program.

2The company cut its fiscal 2027 free-cash-flow growth guidance from 9%-10% to 4%-5%.

In a move reflecting a shift in capital allocation strategy, Salesforce has issued $25 billion in new debt to fund an accelerated share repurchase program. According to reports, this decision comes as the company significantly lowered its free-cash-flow growth guidance for fiscal 2027, slashing projections from the previous 9%-10% range to just 4%-5%. The debt-funded buyback aims to prioritize shareholder returns despite a cooling outlook for cash generation.

These financial maneuvers occur amid mounting pressure on the company's long-term growth prospects, as the revised guidance signals a meaningful slowdown in cash flow productivity. Per analyst data, leveraging the balance sheet to fund buybacks while simultaneously cutting cash flow targets by nearly half presents a complex valuation narrative, raising questions about future leverage and earnings quality within the software sector.

Shares of CRM stood at $196.21 at close on August 14, 2026, having traded between a day high of $204.4 and a low of $195.32. Investors are now watching how this substantial debt load will impact the balance sheet, with few immediate corporate catalysts on the upcoming calendar following the recent inflation data releases that dictate broader market borrowing costs.

Sources:

fool.com