Salesforce’s Leveraged Buyback: A High-Stakes Bet on AI Growth

In a bold financial maneuver, Salesforce has initiated the largest share repurchase program in its history, entirely funded through debt. Announced by CEO Marc Benioff in late February, the company is moving forward with a $50 billion buyback plan, with the first $25 billion tranche launched in March 2026. This aggressive capital return comes as the company’s shares trade approximately 45% below their peak valuation from December 2024.

Activist Pressure and Immediate Execution

The buyback program addresses sustained pressure from activist investors who have been demanding greater capital discipline and improved operating margins from the software giant. Salesforce moved swiftly, with the initial purchase of 103 million shares—representing roughly 80% of the expected total volume—kicking off the program immediately.

To finance this historic repurchase, Salesforce turned to debt markets, issuing bonds across eight tranches with maturities extending to 2066. Coupons on these notes range between 4.5% and 6.7%. The company also secured a new five-year credit facility worth $6 billion. Investor appetite was measured, however, with demand requiring higher yield premiums compared to previous Salesforce offerings. The ten-year tranche, for instance, was priced at a spread of 1.35 percentage points above U.S. Treasuries, a significant increase from levels seen in 2021.

Credit Markets and Rating Agencies React

The leveraged nature of the buyback prompted a swift reaction from credit rating agencies. S&P revised its outlook on Salesforce to “negative,” warning that the company’s leverage ratio could double within the next two years.

This strategic shift occurs amidst a turbulent period for enterprise software. Industry observers are actively debating whether the rise of AI agents could eventually make traditional SaaS subscriptions obsolete—a scenario some have dubbed the “SaaSpocalypse.” A March 2026 survey highlighting that only 14% of CFOs report a measurable ROI from their AI investments underscores the immense performance pressure facing providers like Salesforce.

Should investors sell immediately? Or is it worth buying Salesforce?

Agentforce: The Growth Engine Justifying the Gamble

While the balance sheet strategy raises questions, Salesforce is pointing to the explosive growth of its AI platform, Agentforce, as the strategic counterweight. The platform’s annual recurring revenue (ARR) surged 169% year-over-year to $800 million. The number of closed deals jumped 50% quarter-over-quarter, reaching 29,000, with Agentforce featured in all ten of the company’s largest fourth-quarter contracts.

Notably, several enterprise customers have increased their spending by two to fourfold following the platform’s implementation. The remaining performance obligation (RPO) stood at $72 billion at the close of fiscal year 2026. In March, the company expanded its portfolio with the launch of Agentforce Contact Center, a solution integrating voice channels, digital channels, CRM data, and AI agents.

An Industry-Wide Trend on a Different Scale

Salesforce is not alone in returning capital to shareholders. Competitors like ServiceNow have announced a $5 billion repurchase program, while SAP plans to buy back up to €10 billion in shares by the end of 2027. Nevertheless, the sheer scale of Salesforce’s debt-financed move remains unparalleled in the sector.

The company’s fiscal year 2027 will ultimately reveal whether the soaring growth metrics from Agentforce can sufficiently justify the substantial debt burden it has now undertaken. The success of this high-stakes bet hinges on the AI platform’s continued ability to drive revenue and transform customer relationships.