Salesforce share buyback of $25 billion has begun through an accelerated repurchase program. The initiative is part of a larger $50 billion program that the company’s board approved earlier in 2026 and ranks among the largest buybacks ever executed in the technology sector.
The company announced that the first phase of the program has already started via accelerated repurchase agreements with several financial institutions. Under these agreements, Salesforce immediately pays for and receives a substantial portion of the shares up front.
Initial delivery of 103 million shares
The first phase of Salesforce’s buyback includes an initial delivery of about 103 million shares. That represents roughly 80 percent of the intended volume in the accelerated repurchase program.
The remaining shares will be determined based on the volume-weighted average price of Salesforce stock during the agreement period, adjusted for discounts specified in the contracts.
The program is expected to be fully completed during Salesforce’s fiscal 2027, likely in the third or fourth quarter.
Signal of strong cash flow
Many analysts view the large-scale buyback as a clear signal of the company’s solid cash flow and financial stability.
Robin Washington, Salesforce’s COO and CFO, says the repurchase reflects the company’s growing confidence in future growth.
“This annual repurchase level of $25 billion reflects our increased conviction in our growth and cash flow trajectory,” she said.
Share buybacks are commonly used by large tech companies to increase shareholder value by reducing the number of outstanding shares, which can boost earnings per share and support the stock price over time.
AI concerns weigh on the stock
Despite the historic buyback, Salesforce shares have had a softer year on the market. The stock remains down more than three percent for the year, in part because of concerns about heavy investments in artificial intelligence and a somewhat more cautious outlook for future sales growth.
At the same time, some analysts remain bullish on the company. Technology analyst Dan Ives, for example, added Salesforce to his list of companies that could become major beneficiaries of AI advances within enterprise software.
This suggests the market still sees long-term potential in the company’s platform and ecosystem.
Strong quarterly results
In its most recent quarterly report, Salesforce reported earnings of $3.81 per share for the fourth quarter, significantly above analysts’ expectations of $3.05 per share.
Revenue totaled $11.2 billion, showing continued demand for the company’s cloud-based CRM platform.
The company’s remaining performance obligations (RPO) rose 16 percent year-over-year to $35.1 billion, while total RPO climbed to $72 billion.
Many analysts consider RPO an important indicator of future revenue.
Analysts watch the buyback closely
Several analysts are now monitoring how Salesforce’s buyback will affect the company’s valuation and investor confidence. Share repurchases are a common strategy among large tech firms to optimize capital allocation and enhance shareholder returns.
Meanwhile, Salesforce continues to invest heavily in AI development, automation and cloud infrastructure for enterprises. The combination of significant investment in new technologies and an extensive buyback program could be decisive for the company’s competitiveness in the global market.
For investors, Salesforce’s buyback signals strong cash flows and a long-term focus on creating shareholder value while continuing to expand within the fast-growing enterprise software market.