Salesforce drops as debt-funded $25B buyback revives leverage and credit concerns
Salesforce shares are falling as investors refocus on the company’s newly levered capital-return plan after its record $25 billion bond sale to fund a $25 billion accelerated share repurchase. The debt-funded buyback triggered a Moody’s downgrade to A2 and prompted S&P to shift its outlook to negative, keeping pressure on the stock.
1. What’s moving the stock
Salesforce (CRM) is trading lower as the market digests the company’s recent decision to fund a massive accelerated share repurchase with a record-sized bond offering. The financing shifts the narrative from purely operating execution to balance-sheet risk, and the stock is reacting to the higher leverage profile and the optics of using debt for shareholder returns. (tipranks.com)
2. The financing and why it matters
In mid-March 2026, Salesforce issued $25 billion of senior notes across multiple maturities and tied the proceeds to a $25 billion accelerated share repurchase, with the program structured for a large initial share delivery followed by final settlement later in 2026. Investors are weighing whether the buyback support is enough to offset the higher fixed obligations and reduced flexibility if software spending weakens. (tipranks.com)
3. Credit signals add pressure
Credit-focused headlines have amplified equity caution. Moody’s lowered Salesforce one notch to A2 around the debt-funded repurchase decision, citing the shift toward a higher-debt capital structure, while S&P revised its outlook to negative while affirming its rating. Those actions can matter for equity sentiment by increasing perceived risk and potentially lifting the company’s long-run cost of capital. (finance.yahoo.com)
4. What to watch next
Traders will be looking for updates on the pace and pricing of repurchases, any further rating or outlook actions, and whether management reiterates cash flow priorities in upcoming communications. If the broader software sector remains volatile, CRM may continue to trade on macro-driven multiple compression in addition to company-specific leverage debates. (finance.yahoo.com)