CRM slashes long-term cash flow growth guidance by half after leveraging debt for largest accelerated repurchase in history.
Salesforce raised $25 billion in debt to execute a $25 billion accelerated share repurchase, the largest such deal in software history. The move delivered 103 million shares upfront, reducing share count immediately ahead of final settlement in Q3 fiscal 2025.
The company had previously guided to 9%-10% operating and free-cash-flow growth for fiscal 2027 but cut that outlook to 4%-5% in May, citing the cost of the debt. Salesforce spent $27.1 billion on buybacks and $365 million on dividends in Q1, exceeding its free cash flow from the prior fiscal year.
Shares traded near $196, down 27% from the 52-week high of $269.11, as investors assess the impact of the aggressive capital allocation shift.