U.S. companies have announced $1 trillion in stock buybacks this year, a record pace, led by tech giants Apple and Alphabet, as well as big banks. Research firm Birinyi Associates projects $1.3 trillion of buybacks will be announced for 2025, and a record amount of repurchases will be completed.
Large companies, already sitting on sizable cash reserves, saw strong earnings in the second quarter—and were given bounteous corporate tax benefits in the sweeping Republican budget reconciliation bill, signed by President Trump on July 4. Almost half the planned repurchases are coming from 20 large companies, which will have the effect of driving up their earnings-per-share numbers.
Corporate stock buybacks reward investors, but divert money from wages and long-term investment while disproportionately benefiting institutional investors who own the vast majority of shares.
Yesterday, Nvidia announced plans to boost its repurchases by a record $60 billion, just after releasing its much-scrutinized quarterly earnings. In May, Apple announced a $100 billion buyback plan, the largest by a company this year. The month before, Alphabet announced a $70 billion buyback plan; among banks, JPMorgan Chase plans $50 billion in buybacks, and Bank of America is in for $40 billion.
