Salesforce Uses $25B Debt to Fund $50B Share Buyback Plan
Salesforce pivoted to a net debt of nearly $5B by issuing $25B of senior notes at 4.5%-6.7% to fund a $50B buyback. In fiscal 2026 it generated $41.5B in revenue (+10% y/y), $5.3B free cash flow in Q4 (+40%), and holds $35.1B cRPO up 16%.
1. Buyback and Capital Shift
Salesforce has moved from a net-cash position to roughly $5 billion in net debt by issuing $25 billion of senior notes carrying coupons between 4.5% and 6.7%. This debt facilities a newly authorized $50 billion share repurchase program, signaling a strategic shift from acquisitions to aggressive capital return.
2. Fiscal 2026 Financial Performance
In the 2026 fiscal year Salesforce reported $41.5 billion in revenue, a 10% year-over-year rise, and generated $5.3 billion in free cash flow during Q4, up 40% from last year. The company’s current remaining performance obligations stand at $35.1 billion, up 16%, providing visibility into next year’s revenue base.
3. Capital Structure Evolution
Between 2019 and 2022 the equity base swelled from $15 billion to $58 billion to fund M&A, diluting shareholders, but recent share repurchases of nearly $20 billion have begun reversing that trend. This buyback push, combined with cost efficiencies, has moved return on invested capital up to 7%, still below peer averages but on an improved trajectory.
4. Growth Drivers and AI Investment
Legacy Sales and Service clouds are growing at about 8%–9%, while the 360 Platform (including Slack and Data Cloud) is expanding at 22%, highlighting cross-sell potential. The Agentforce AI initiative has closed 29,000 deals in its first 15 months, positioning autonomous agents as a future growth engine.