Salesforce Unveils $25B Accelerated Share Repurchase, Targeting 14% of Outstanding Stock

Salesforce Inc. has launched a $25 billion accelerated share repurchase (ASR) program, marking one of the largest buyback initiatives in tech history. The company intends to use the full amount to repurchase approximately 14% of its outstanding shares, a significant reduction in float that underscores management's belief the stock is undervalued. This decision follows recent internal assessments and public statements from executives suggesting CRM shares are trading well below intrinsic value. The ASR program, executed through a structured financial agreement with a major investment bank, will be completed over several months, with the bulk of repurchases occurring in Q2 2026. The move is a strategic shift toward capital return, especially after years of organic growth and M&A investment. With CRM’s market cap near $178 billion, the $25 billion repurchase represents roughly 14% of its equity value, reflecting a concentrated commitment to shareholder value. The announcement has already triggered positive momentum in the broader tech sector. The XLK ETF, which tracks the technology sector, rose 1.3% in early trading, while the S&P 500 (^GSPC) gained 0.5%. Investors are interpreting the repurchase as a strong vote of confidence, particularly amid ongoing concerns about software sector valuations and macroeconomic headwinds. The buyback could also attract increased inflows into growth-oriented tech funds. Market participants now expect other large-cap tech firms to follow suit, especially those with resilient cash flows and underperforming stock prices. The scale of Salesforce’s commitment may set a new benchmark for corporate capital allocation in the software and cloud computing space.