"These are great prices, I'm sure you would agree with that, and we want to use our capital correctly, and I think debt is a great way to do that. And I think our stock is at a great price, and I want (CFO) Robin (Washington) to buy as much of it as she possibly can."
"Benioff announced plans to repurchase $50 billion in stock during the company's February 26 earnings call, with half of that being financed with several batches of notes that will start maturing in 2028, and will require Salesforce to make repayments for 40 years."
"Benioff said Salesforce stock had become diluted through the 2021 purchase of Slack for $27.1 billion, and its 2019 acquisition of Tableau for $15 billion."
Salesforce CEO Marc Benioff announced a $50 billion stock buyback program, with $25 billion financed through debt notes maturing over 40 years starting in 2028. Benioff justified the strategy by citing favorable stock prices and the company's underutilization of debt, despite generating approximately $16 billion in free cash annually. The company completed an accelerated share repurchase of 103 million shares, representing 80 percent of committed buybacks, with remaining purchases planned for late fiscal 2027. Benioff attributed stock dilution to previous acquisitions of Slack and Tableau. The buyback announcement occurred amid investor concerns about AI coding tools potentially diminishing software vendors' relevance, contributing to recent market cap losses across major software companies.
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