Salesforce Issues $25 Billion in Bonds for Massive Share Buyback, Stock Soars 3%

Investing.com - Despite a weak market trend on Thursday, Salesforce (NYSE:CRM) stock still recorded a strong increase. The company previously completed pricing of $25 billion in senior notes, with all proceeds immediately used for share repurchase through an Accelerated Share Repurchase (ASR) agreement. The stock latest traded at $200, up 3%.

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This cloud software giant announced that all net proceeds from the bond issuance will be used for ASR transactions with specific financial counterparties. Prepayments and initial share deliveries are expected to occur by March 16, 2026. This issuance is one of the largest corporate financings in the tech sector in 2026 and also Salesforce’s largest bond issuance in history.

Record Capital Allocation

The $25 billion financing follows Salesforce’s announcement in February 2026 of a $50 billion buyback plan and a 5.8% dividend increase. JPMorgan Chase, Bank of America, Barclays, Citigroup, and Wells Fargo are arranging this bond issuance.

The company’s last entry into the U.S. bond market was in 2021, raising $8 billion to support its acquisition of communications platform Slack. Prior to this issuance, Salesforce’s outstanding debt was $8.5 billion, with cash and cash equivalents of $7.33 billion. The next $1.5 billion bond matures on April 11, 2028.

Bond Issuance Boom in Tech Sector

Salesforce joins the ranks of tech companies actively entering the bond market in 2026. Amazon raised $15 billion in November 2025, attracting $80 billion in demand. Meta applied to issue up to $30 billion in bonds in October 2025, while Oracle plans to raise between $45 billion and $50 billion. Alphabet sold $31.51 billion in bonds in February 2026, including rare 100-year maturity bonds.

The surge in corporate financing reflects tech companies’ efforts to fund AI infrastructure expansion while also returning capital to shareholders. After pressure from aggressive investors demanding stronger capital discipline and higher operating profit margins, Salesforce has placed greater emphasis on shareholder returns.

Market Reaction

Salesforce’s stock reached an intraday high of $204.86 and closed at $200, outperforming software competitors. ServiceNow Inc (NYSE:NOW) fell 0.95% to $114.53, and Oracle Corp (NYSE:ORCL) declined 0.83% to $161.77. The overall software sector saw slight declines, with Adobe Inc (NASDAQ:ADBE) down 0.58%.

Key Points

• Delivery on March 16: Expected initial share delivery and prepayment under the ASR agreement, reducing the number of outstanding shares

• Remaining authorization: Clarify how much capacity remains in the $50 billion buyback plan after deploying the $25 billion

• Credit rating impact: Analysts’ assessment of how the significant increase in debt will affect Salesforce’s financial health

This move represents a major acceleration of Salesforce’s capital return strategy, with the company choosing to deploy the entire $25 billion immediately rather than spreading purchases over time. Despite current market uncertainties, this aggressive approach indicates management’s strong confidence in the company’s long-term value.

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