Salesforce borrowed $25 billion to fund the largest accelerated share repurchase in history, then cut its fiscal 2027 operating and free-cash-flow growth guidance to 4% to 5%, half the 9% to 10% it had guided in February, to reflect the cost of that debt. The buyback is part of a $50 billion authorization approved in February, with an upfront delivery of 103 million shares, about 80% of the total expected, and final settlement due in the fiscal third quarter. Salesforce returned $27.5 billion to shareholders in a single quarter, including $27.1 billion of repurchases and $365 million in dividends, more than its entire prior-year free cash flow, and its diluted share count is now down 10% from a year ago. Fiscal first-quarter revenue rose 13% to $11.1 billion, current remaining performance obligation rose 14% to $33.6 billion, and management raised the midpoint of fiscal 2027 revenue guidance to $45.9 billion to $46.2 billion, about 11% growth. Diluted earnings per share rose 52% to $2.42, though much of that jump came from a swing in gains on strategic investments rather than operations.
Salesforce.com IncHalves fiscal 2027 cash flow growth guidance to 4-5% due to debt cost of record buyback.
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