U.S. tech titans and banks are on course to drive a record-breaking amount of share buybacks in 2025.
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According to new figures from Birinyi Associates, U.S firms have announced $983.6 billion worth of stock buybacks so far this year. That is the best start to a year in over 40 years and is on course to hit more than $1.1 trillion worth of buybacks by the end of 2025.
Best Ever
That would mark an all-time high in the U.S.
The biggest repurchases include Apple (AAPL), Alphabet (GOOGL), JPMorgan Chase (JPM), Bank of America (BAC) and Morgan Stanley (MS)
In May, Apple announced a $100 billion buyback. while in April Alphabet announced a $70 billion stock buyback program continuing a rising pattern since the Covid pandemic.
JPMorgan said in July that the company will buy back $50 billion worth of stock. Bank of America announced a share-repurchase program of $40 billion, and Morgan Stanley reauthorized up to $20 billion in buybacks.
U.S. companies announced $165.6 billion worth of buying last month, above the previous July record of $87.7 billion in 2006, according to Birinyi.
Main Drivers
It is being driven by strong earnings growth and tax cuts which are bolstering corporate balance sheets. In addition, the uncertainty of President Trump’s tariff trade strategies are freezing investment plans and making buybacks a more appealing use of incoming cash.
It has also fuelled the post April resurgence in American stock markets such as the S&P 500 and Nasdaq composite. This growth can be seen in the SPY ETF, which tracks the S&P 500 index, below.
“Things are better than everyone makes them seem,” said Jeffrey Yale Rubin, president of Birinyi Associates. “Companies are flush with cash. They were in healthy shape even before the better earnings.”
However, while buybacks can bring cheer to both businesses and investors as prices are boosted because there are fewer number of shares around to trade, it could spell bad news of the overall health of the U.S. economy.
Some analysts believe that companies preferring buybacks over investing in factories or offering dividends could weigh on growth over the long-term.
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