Salesforce announced on March 16 the start of its $25 billion accelerated share repurchase (ASR), marking the largest ASR transaction to date. The company said it has prepaid and received an initial delivery of about 103 million shares under agreements made with several financial institutions on March 11.
The move represents half of Salesforce’s $50 billion aggregate Share Repurchase Program, which was authorized by its Board of Directors in February. This significant buyback signals leadership’s confidence in the company’s future and its commitment to increasing shareholder value.
Marc Benioff, Chair and CEO of Salesforce, said, “We are aggressively repurchasing shares because we are so confident in the future of Salesforce.” Robin Washington, President and Chief Operating and Financial Officer, added, “This $25 billion ASR reflects our increased conviction in the durability of our growth and cash flow trajectory.”
The ASR agreements were made with Banco Santander, Bank of America, Citibank, JPMorgan Chase Bank, and Morgan Stanley. J. Wood Capital Advisors LLC served as an advisor for the transaction. The initial delivery covers approximately 80% of the total shares expected to be repurchased based on Salesforce’s closing stock price on March 11. The final number will depend on the volume-weighted average price during the term of the agreement and is expected to settle in either the third or fourth quarter of Salesforce’s fiscal year 2027.
Salesforce stated that this announcement does not constitute an offer or solicitation to buy or sell securities where such actions would be unlawful. The company also noted that forward-looking statements are subject to risks and uncertainties detailed in its most recent annual report filed with regulators.
Looking ahead, observers will watch how Salesforce utilizes the remaining $25 billion authorization from its board as part of its broader strategy.
