Salesforce Inc. shares were trading about 2.5% higher shortly before the opening bell on Monday after the company said it has initiated a $25 billion accelerated share repurchase (ASR), marking the largest single repurchase action in the company’s history.
Under the ASR arrangements entered into on March 11, Salesforce made the prepayment and completed the initial delivery of approximately 103 million shares, according to the company. That upfront delivery represents the immediate execution of half of the $50 billion aggregate share repurchase program that Salesforce’s board approved in February.
Speaking on the move, Marc Benioff, chair and chief executive officer of Salesforce, said, "We are aggressively repurchasing shares because we are so confident in the future of Salesforce." The company’s president and chief operating and financial officer, Robin Washington, added that the $25 billion accelerated share repurchase "reflects the company’s increased conviction in the durability of its growth and cash flow trajectory."
Salesforce disclosed that it entered the ASR agreements with several financial institutions, specifically Banco Santander, Bank of America, Citibank, JPMorgan Chase Bank and Morgan Stanley, while J. Wood Capital Advisors acted in an advisory capacity for the transaction.
The initial 103 million shares delivered equate to roughly 80% of the total number of shares expected to be repurchased, using the closing price of Salesforce common stock on March 11 as the reference. The final quantity of shares to be acquired under the ASR will be determined generally by the volume-weighted average price (VWAP) of Salesforce common stock over the term of the agreements, subject to a discount and customary adjustments.
Salesforce indicated that final settlement of the ASR is anticipated to occur in the third or fourth quarter of the company’s fiscal year 2027. The company is executing this large repurchase as an upfront, partially settled ASR with a mechanism to reconcile the remaining share count against VWAP over the transaction period.
Context and implications
The immediate delivery of shares and the sizable prepayment represent an expedited return of capital to shareholders and reflect management’s stated confidence in Salesforce’s forward earnings and cash generation path. The ultimate number of shares retired will be finalized when the ASR settles later in the stated fiscal period.