Key Points
- 01S&P Global Ratings cut Salesforce’s issuer rating to A with a stable outlook
- 02The downgrade cites rising debt from acquisitions and a $25 billion buyback
- 03Salesforce priced $25 billion in debt in March 2026 to fund repurchases
- 04Salesforce agreed to buy AI firm Cresta for $2.7 billion, closing in fiscal Q1 2028
S&P downgrades Salesforce on leverage and buyback
The agency pointed to rising borrowings related to acquisitions and a $25 billion debt‑financed share repurchase program as key drivers of the downgrade. The move places greater focus on how Salesforce balances growth investments with capital returns to shareholders.
The $25 billion buyback is being funded in part through capital markets. Salesforce priced $25 billion in debt in March 2026 to help finance the repurchase effort, following a February announcement of a broader $50 billion share repurchase plan and a 5.8% dividend increase. S&P expects that free operating cash flow may be directed toward shareholder returns and acquisitions.
Acquisition strategy and Cresta deal
Salesforce’s acquisition activity is a central element in the rating reassessment. S&P highlighted increased merger and acquisition activity as a factor behind the downgrade, reflecting the added leverage the company is taking on to fund deals alongside its buyback program. This approach ties the company’s credit profile closely to its deal execution and integration capabilities.
As part of this strategy, Salesforce has agreed to acquire AI voice‑agent firm Cresta, reportedly for $2.7 billion.
Growth expectations and cash flow use
Despite the downgrade, S&P expects Salesforce to grow both subscription revenue and earnings. The outlook is supported by the company’s remaining performance obligations, which provide visibility into future recurring revenue. These expectations underpin the stable outlook on the new A rating, even as leverage remains elevated due to debt‑funded initiatives.
S&P anticipates that free operating cash flow may be allocated to shareholder returns and further acquisitions.
Product expansion and user growth
Alongside its financial moves, Salesforce is expanding its product offerings in AI‑driven tools. The company announced enhanced features for Agentforce Coworker and broader availability across additional platforms. These enhancements are part of Salesforce’s effort to deepen AI capabilities within its ecosystem.
Salesforce reported that Agentforce Coworker now has more than 185,000 users. Usage of the tool has increased 21‑fold within three months, indicating rapid adoption among customers. This user growth provides operational context to Salesforce’s ongoing investments in AI and acquisitions such as the planned Cresta purchase.
Key Takeaways
- 01The rating cut to A reflects Salesforce’s choice to combine a large, debt‑funded buyback with ongoing acquisition activity, increasing sensitivity to leverage levels.
- 02S&P maintains a stable outlook because it expects subscription revenue and earnings to grow, supported by strong remaining performance obligations.
- 03Salesforce is simultaneously returning substantial capital and investing in AI, as shown by the Cresta deal and rapid adoption of Agentforce Coworker.
- 04Future credit metrics will hinge on how Salesforce balances cash flow between shareholder returns, debt management, and further acquisitions.