Salesforce announced it is exploring a $25 billion bond issuance to support its recently authorized $50 billion share‑buyback program, marking the company’s largest‑ever note sale and its return to the debt market after a period focused on equity returns and operational investments.
The decision follows Q4 FY2026 results that showed an adjusted EPS of $3.81 versus $2.78 in the prior‑year quarter, a reported EPS of $2.07 versus $1.75, and revenue of $11.2 billion versus $10.0 billion. GAAP operating margin stood at 20.1% and non‑GAAP margin at 34.1%, both reflecting strong profitability and cost discipline that give management confidence to pursue aggressive capital allocation.
Salesforce’s FY2026 revenue of $41.5 billion grew 10% year‑over‑year, driven by robust demand for its core cloud and AI services. The company’s healthy cash flow supports both growth initiatives and shareholder returns, as evidenced by the $50 billion buyback authorization and a 5.8% dividend increase.
Management highlighted the strategic focus on the “Agentic Enterprise” vision. Benioff said, “We’ve rebuilt Salesforce to become the operating system for the Agentic Enterprise, bringing humans and agents together on one trusted platform. And the more intelligence moves to where work happens, the more valuable Salesforce becomes.” CFO Robin Washington added, “Our performance makes us even more confident in our path to reaccelerate organic revenue growth in H2 FY27. By driving adoption of Agentforce and Data 360 across our platform, we are building a powerful engine that converts raw intelligence into enterprise work.”
The bond issuance will provide liquidity for the buyback while preserving flexibility for future investments. However, the increased leverage prompted Moody’s to downgrade Salesforce to A2, reflecting a material shift in financial policy. Investors have responded cautiously, weighing the upside of shareholder returns against the downside of higher debt levels.
Salesforce also guided for FY2027 EPS of $13.110–$13.190 and Q1 FY2027 EPS of $3.110–$3.130, both above analyst expectations, indicating confidence in continued growth despite near‑term revenue guidance concerns.
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