Adobe Systems Inc. said May 21 that its board of directors has approved a stock repurchase program to buy back up to $8 billion of the company's common shares through its fiscal year 2021.
Under the program, the computer software company may repurchase shares in the open market and enter into structured repurchase agreements with third parties.
The new stock repurchase authority expands the company's previous program that authorizes the repurchase of up to $2.5 billion in common stock through fiscal year 2019. That program is expected to be exhausted by late 2018.
The new program will be funded from Adobe's future cash flow from operations and is not expected to have a material impact on the company's fiscal year 2018 earnings.
"Our ability to substantially increase Adobe's stock repurchase program is reflective of our strong cash flow expectations and balance sheet, and reinforces our commitment to returning value and excess cash to our stockholders," said John Murphy, Adobe's executive vice president and chief financial officer.
