Investing.com -- Salesforce (NYSE: CRM) stock gained solidly on Thursday, despite a weak broader market, after the company priced a $25 billion senior notes offering, with the entire proceeds earmarked for an immediate share repurchase program through accelerated share repurchase agreements (ASR). The stock last traded at $200, up 3%.

The cloud software giant said it will deploy all net proceeds from the debt issuance into ASR transactions with certain financial institution counterparties, with prepayment and initial share delivery expected to occur on March 16, 2026. The offering represents one of the largest corporate borrowings in the tech sector for 2026 and the biggest debt issuance in Salesforce's history.

Record-Breaking Capital Allocation

The $25 billion raise follows Salesforce's announcement in February 2026 of a $50 billion repurchase program and a 5.8% dividend increase. JPMorgan Chase, Bank of America, Barclays, Citigroup, and Wells Fargo are arranging the debt offering.

The company last tapped U.S. bond markets in 2021, when it secured $8 billion to support its acquisition of communication platform Slack. Before this offering, Salesforce had $8.50 billion in debt outstanding and $7.33 billion in cash and cash equivalents, with its next bond payment of $1.50 billion due on April 11, 2028.

Tech Sector Debt Boom

Salesforce joins a growing roster of technology companies aggressively tapping debt markets in 2026. Amazon raised $15 billion in November 2025, drawing $80 billion in demand. Meta filed for up to $30 billion in October 2025, while Oracle is planning a $45-50 billion raise. Alphabet sold $31.51 billion in February 2026, including a rare 100-year bond.

The surge in corporate borrowing reflects tech companies' dual focus on funding AI infrastructure expansion while returning capital to shareholders. Salesforce has emphasized shareholder returns more strongly following pressure from activist investors to enhance capital discipline and improve operating margins.

Market Reaction

Salesforce shares hit an intraday high of $204.86 before settling at $200, outperforming software competitors. ServiceNow Inc (NYSE: NOW) declined 0.95% to $114.53, while Oracle Corp (NYSE: ORCL) fell 0.83% to $161.77. The broader software sector saw modest declines, with Adobe Inc (NASDAQ: ADBE) down 0.58%.

What to Watch

• March 16 delivery: Initial share delivery and prepayment under ASR agreements expected to begin reducing outstanding share count

• Remaining authorization: Clarity on how much of the $50 billion repurchase program remains available after this $25 billion deployment

• Credit rating impact: Analyst assessments of how the significant debt increase affects Salesforce's financial profile

The move represents a significant acceleration of Salesforce's capital return strategy, with the company choosing to deploy the full $25 billion immediately rather than spreading purchases over time. This aggressive approach signals management's confidence in the stock's long-term value despite current market conditions.