Salesforce (NYSE: CRM) borrows $31B to fund stock buybacks
Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
10-Q
Rhea-AI Filing Summary
Salesforce, Inc. (CRM) reported higher results for the quarter ended July 31, 2026. Total revenue was $11.35 billion, up from $10.24 billion a year earlier, driven by subscription and support revenue of $10.82 billion. Americas contributed $7.40 billion, Europe $2.76 billion, and Asia Pacific $1.17 billion.
Income from operations was essentially flat at $2.33 billion, but net income rose to $3.53 billion from $1.89 billion, largely due to $2.61 billion of gains on strategic investments, including sizable unrealized gains on its Anthropic stake. For the first six months, operating cash flow was $7.97 billion. Total debt increased to $39.29 billion from $10.44 billion after issuing $25 billion of new senior notes and a $6 billion term loan, mainly to fund a $25 billion accelerated share repurchase and other buybacks, reducing stockholders’ equity to $38.38 billion. Salesforce acquired Qualified.com for $1.2 billion and agreed to acquire Contentful for $1.5 billion and Fin for $3.6 billion. A quarterly dividend of $0.44 per share continued.
Positive
- Net income more than doubled year over year to $3.53 billion for the quarter, and six‑month operating cash flow was a strong $7.97 billion, indicating robust profitability and cash generation.
- Subscription and support revenue, the core business, increased to $10.82 billion for the quarter and $21.41 billion for six months, reflecting continued demand across regions.
Negative
- Total debt rose sharply to $39.29 billion from $10.44 billion, as Salesforce issued $25 billion of notes and a $6 billion term loan, increasing leverage.
- Earnings relied heavily on investment gains, with $2.61 billion quarterly gains on strategic investments, including large unrealized gains on Anthropic, which may be volatile.
- Remaining performance obligation declined to $66.3 billion from $72.4 billion, and total stockholders’ equity fell to $38.38 billion from $59.14 billion, reflecting significant buybacks.
