Buybacks push US toward record high

U.S. firms accelerate stock buybacks, with tech giants and banks driving toward a trillion-dollar milestone in 2025.

Buybacks Push US Record Pace Led by Apple and Alphabet

U.S. firms have announced $983.6 billion in stock buybacks so far this year, according to Birinyi Associates, on a path to surpass $1.1 trillion by the end of 2025. Apple announced a $100 billion program in May, Alphabet $70 billion in April, JPMorgan Chase $50 billion, Bank of America $40 billion, and Morgan Stanley up to $20 billion. Last month buybacks totaled $165.6 billion, a figure that tops the previous July record. The surge comes as earnings growth supports cash returns, while tax cuts bolster corporate balance sheets and tariff policy adds a note of policy risk that could influence future spending. The trend has helped lift broad market indices as the buyback effect reduces the float and concentrates ownership.

The surge signals a shift in how companies allocate cash. Instead of funding new factories or higher wages, many firms are prioritizing shareholder returns. This can push short term stock prices higher, but it may slow long term growth if capital stays on the balance sheet rather than being invested in productivity. Tariff uncertainty adds another layer of risk for planning and could influence whether buybacks remain the easiest option for returning cash. In the broader market, buybacks can smooth prices in the near term even as questions linger about the health of ongoing investment and jobs.

Highlights

As the buyback wave grows, the real test is whether capital spending follows suit in the years ahead.