Adobe Authorizes New $8 Billion Stock Repurchase Program

Adobe ( ADBE) today announced its board of directors has approved a new stock repurchase program granting the company authority to repurchase up to $8 billion in common stock through its fiscal year 2021. Under the program, which is designed to return value to Adobe’s stockholders, offset dilution from stock issuances, and reduce share count over time, the company may repurchase shares in the open market and enter into structured repurchase agreements with third parties.

The new stock repurchase authority is a significant expansion of the company’s previous program authorizing the repurchase of up to $2.5 billion in common stock through fiscal year 2019 that is expected to be exhausted later this year. The new program is expected to 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.